The Financial Markets Standards Board has published a Transparency Draft Statement of Good Practice on Unauthorised Trading Frameworks for industry consultation, aiming to provide practical foundations for oversight and controls and to promote more consistent expectations among firms and regulators on the wider frameworks needed to contain unauthorised trading. The draft responds to the ongoing risk that vulnerabilities can still allow unauthorised trading to occur or go undetected, despite heavy industry investment in risk management. It also addresses the absence of comprehensive published guidance, which FMSB notes has contributed to uneven progress in baseline standards across markets and jurisdictions. Developed by a working group convened after FMSB’s work on Front Office Supervision, the draft reflects input from FMSB members across buy-side and sell-side firms and incorporates contributions from the global regulatory community. Comments on the Transparency Draft are open until 15 September 2025.
Financial Markets Standards Board 2025-07-23
Financial Markets Standards Board launches consultation on transparency draft good practice for unauthorised trading frameworks
The Financial Markets Standards Board has released a Transparency Draft Statement of Good Practice on Unauthorised Trading Frameworks for industry consultation, aiming to enhance oversight and controls and establish consistent expectations among firms and regulators. The draft addresses vulnerabilities in risk management and the lack of comprehensive guidance, with comments open until 15 September 2025.