FMSB publishes final statement of good practice on unauthorised trading frameworks

The Financial Markets Standards Board (FMSB) has released its finalised Statement of Good Practice (SoGP) on Unauthorised Trading Frameworks. The SoGP, consulted on in July, aims to support firms in developing robust oversight and control mechanisms to mitigate the risk of unauthorised trading in wholesale financial markets. It provides practical recommendations on areas related to: (i) governance (including firm governance frameworks, understanding of the authorisation perimeter and accountability for unauthorised trading controls); (ii) controls and monitoring (including pre-trade and point-of-trade controls to mitigate unauthorised trading, post-trade controls to signal potential unauthorised trading and analytics across the front-to-back trade lifecycle); and (iii) intervention and reporting (including escalation in the case of a potential or actual unauthorised trading event and periodic management reporting). The SoGP is applicable to all types of trading.

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