The Financial Markets Standards Board (FMSB) has released its final statement of best practice on trading platform disclosures, drawing heavily on existing EU and UK regulatory requirements and initiatives.
The FMSB has established best practices on how platform operators should disclose to their participants, addressing the fixed income, currency and commodity markets – including platforms that are covered by existing regulation such as Mifid II, as well as those which are not, such as the single broker. platforms.
The statement calls for platform agreements to include information on trading protocols, counterparty name disclosure, prioritization, use of last look, and trade dispute resolution.
In addition, the Statement of Good Practices on Electronic Platforms covers any platform participant obligations, including systems and risk controls, as well as setting up credit and providing the names of personnel authorized to access the platform. platform.
“Ensuring that market participants have a solid understanding of how their trades are executed is a cornerstone of fair and efficient markets, and with the increasing electronicization of markets, this statement of good practice will help participants on the market. market,” said Myles McGuinees. , Director General of the FMSB.
The FMSB paper also looked at outages, including disclosure expectations related to the suspension of trading, including when it is expected to resume, the status of orders or quotes when trading continues, as well as information relating to the cause of the cessation of exchanges.
“The development of this statement of good practice has involved significant discussions between different participants, which reflects the ambition of the document to cover the fixed income, currency and commodity markets as a whole and a wide range of platforms from established MTFs (multilateral trading facilities) to single-dealer platforms,” said Zar Amrolia, co-CEO of XTX.