Fixed Income, Currencies and Commodities Markets Standards Board and Funding: Difference between pages

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(FMSB).
1.


The FMSB is an independent body set up by market participants in 2015, following conduct problems that arose in the global wholesale FICC markets during the financial crisis.
Medium to longer term borrowing by a non-financial undertaking to meet its operational needs.




The FMSB is not a regulator or a trade association, and does not produce rules, laws or codes, but instead publishes voluntary standards and guidance notes designed to illustrate best practice and improve standards of conduct in wholesale FICC markets.
2.


More generally, the provision or the sources of finance necessary for the continuing operation of an undertaking.


The relevance for treasurers who work in financial institutions is clear, particularly given the Financial Conduct Authority (FCA)'s recognition of voluntary codes, and taking them into consideration when reviewing regulated organisations.  
In this context, sources of finance for non-financial organisations would include creditors, bank lenders, bondholders and shareholders.




Why, then, should non-financial corporates be interested in the workings of the FMSB?
3. ''Pensions.''


The answer is that these standards of best practice may influence how banks operate.  
The provision in advance for future liabilities in a defined benefit pension scheme by the accumulation of assets.


They describe a level of behaviour that corporates can expect from their financial counterparties.


They also act as a valuable resource for corporates trying to understand market mechanics and what their own behaviours should be when transacting in
4. ''Banking.''
those markets.


In the banking context, sources of funding include retail customer deposits and equity, as well as wholesale and longer term borrowings.


The FMSB website also has a database of misconduct cases in financial markets dating back to 1792, together with analysis covering the behavioural patterns.
Banks' funding - very broadly - can be categorised as 'own funds' or 'borrowed funds'.


The Association of Corporate Treasurers is a partner member of the FMSB.


In addition, there are a number of corporates that are full members, including BAE Systems, BHP, BP, Rio Tinto, Royal Dutch Shell, Royal Mail Group and Vodafone.
== See also ==
* [[Borrowed funds]]
* [[Defined benefit pension scheme]]
* [[FFL]]
* [[Flighty]]
* [[Funding liquidity risk]]
* [[Funding management]]
* [[Funding ratio]]
* [[Funding risk]]
* [[MCT]]
* [[Net stable funding ratio]]
* [[Own funds]]
* [[Stability]]
* [[Sticky]]




==See also==
===Other links===
* [[Conduct]]
[http://www.afponline.org/publications-data-tools/reports/guides/global-liquidity-guides/Detail/short-term-borrowing AFP Guide to Global Short Term Borrowing] ''gtnews.com''
* [[Database]]
* [[FICC]]
* [[Financial Conduct Authority]]
* [[Financial crisis]]
* [[Statement of Good Practice]]
 
 
==Other links==
*[https://fmsb.com/our-publications/#3 FMSB's standards]
*[https://fmsb.com/fmsb-publishes-new-financial-markets-misconduct-research/ FMSB database of misconduct cases]
 
[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]

Revision as of 09:38, 21 September 2016

1.

Medium to longer term borrowing by a non-financial undertaking to meet its operational needs.


2.

More generally, the provision or the sources of finance necessary for the continuing operation of an undertaking.

In this context, sources of finance for non-financial organisations would include creditors, bank lenders, bondholders and shareholders.


3. Pensions.

The provision in advance for future liabilities in a defined benefit pension scheme by the accumulation of assets.


4. Banking.

In the banking context, sources of funding include retail customer deposits and equity, as well as wholesale and longer term borrowings.

Banks' funding - very broadly - can be categorised as 'own funds' or 'borrowed funds'.


See also


Other links

AFP Guide to Global Short Term Borrowing gtnews.com

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