The Financial Markets Standards Board (FMSB) has published a Transparency Draft Statement of Good Practice on grey market trading (GMT) to help firms assess whether GMT is appropriate in different contexts. GMT is described as the conditional trading of securities before they are declared free to trade (FTT) by a syndicate, and it may begin from the point a deal is publicly announced. The draft notes that grey markets can support price discovery, liquidity and risk management ahead of formal issuance, but it flags potential risks, particularly where banks have a syndicate role. Developed by a working group drawn from across FMSB members, the statement aims to promote a common understanding of GMT’s role, benefits and risks across issuers, investors and syndicate banks, and to set out key considerations for syndicate banks before deciding to conduct GMT. The Transparency Draft is open for wider industry comment until 15 February 2026.
Financial Markets Standards Board 2025-12-17
Financial Markets Standards Board publishes transparency draft statement of good practice on grey market trading
The Financial Markets Standards Board has released a Transparency Draft Statement of Good Practice on grey market trading to guide firms in assessing its appropriateness, highlighting its role in price discovery and liquidity, while noting risks, especially for syndicate banks. The draft is open for industry comment until 15 February 2026.