FSMB consults on ‘statement of good practice’ following Libor

The FICC Markets Standards Board (FSMB) has published draft guidance on what information traders can share, in the aftermath of the Libor rigging scandal, according to Reuters.

The FSMB said the proposed guidance would set out the kind of information participants in commodities and fixed income markets can exchange in Britain.

In a statement, the board said: “The question of what information may be shared between participants in these markets is complex and recent conduct events have drawn attention to the risks associated with sharing information in an inappropriate manner.”

The Libor scandal saw banks fined billions of dollars as a result of rigging currency markets. The matter drew attention to the conversations between brokers from different bank and the exchange of information on a casual basis, by email, telephone or instant message.

The FSMB’s ‘statement of good practice’ is open for consultation. The aim of the code is to stop traders from going further than making general comment and submitting information that would enable another party to identify a client or provide investment recommendations.

The FSMB was established in a drive to clean up currency markets following the Libor scandal.