Fixed Income, Currencies and Commodities Markets Standards Board
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.
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.
The relevance for treasurers who work in financial institutions is clear, particularly given the recent Financial Conduct Authority (FCA) announcement that it will be recognising voluntary codes and taking them into consideration when reviewing regulated organisations.
Why, then, should non-financial corporates be interested in the workings of the FMSB?
The answer is that these standards of best practice may influence how banks operate.
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 those markets.
The FMSB website also has a database of misconduct cases in financial markets dating back to 1792, together with analysis covering the behavioural patterns.
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.