The Financial Markets Standards Board (FMSB) has published a final Statement of Good Practice on Unauthorised Trading Frameworks, setting out industry-wide guidance to help firms strengthen oversight and controls designed to prevent or mitigate unauthorised trading in wholesale markets and to promote more consistent expectations among firms and regulators. The guidance responds to a continuing risk that new or existing vulnerabilities can enable unauthorised trading to occur or remain undetected, despite substantial investment in risk management frameworks. FMSB noted that cross-jurisdictional regulatory engagement has often been bilateral and that, without comprehensive published guidance, baseline standards have not advanced consistently across markets. Following its work on Front Office Supervision, FMSB convened a working group led by Alison Higgins of Standard Chartered, drawing input from both buy-side and sell-side members and benefiting from contributions from the global regulatory community.
Financial Markets Standards Board 2025-10-09
Financial Markets Standards Board issues final Statement of Good Practice on unauthorised trading frameworks
The Financial Markets Standards Board has issued a final Statement of Good Practice on Unauthorised Trading Frameworks, providing industry-wide guidance to enhance oversight and controls in wholesale markets and promote consistent expectations among firms and regulators. This guidance addresses ongoing risks of unauthorised trading due to vulnerabilities and aims to standardize baseline standards across markets.