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The Securities Industry and Financial Markets Association (SIFMA) today released amended and restated Money Market Guidelines (the “Guidelines”) adopted and approved by the SIFMA Money Market Executive Committee as of October 23, 2007. These Guidelines supersede and replace the Money Market Trading Practice Guidelines dated October 8, 1996 (the “1996 Guidelines”).
“The Committee recognized that some of the 1996 Guidelines were outdated and no longer applicable,” says Robert Toomey, managing director and assistant general counsel of SIFMA. “The amended Money Market Trading Practice Guidelines are designed to further the efficient trading of money market instruments.”
Although the Guidelines are non-binding, the Committee recommends that all parties trading in money market instruments abide by them.
Some of the Guidelines include:
1.
All
guidelines which concern trading in money markets on and off screen apply
equally to all market participants.
2.
In the course of presenting markets, brokers should maintain the
anonymity of their customers.
3.
Markets on screen may be either primary or secondary and should be
clearly labeled as such.
4.
When reporting trades, brokers should report to dealers only those
trades which have actually been consummated either by themselves or "done
away".
5. It is each dealer’s responsibility to establish and clear new bids and offers within a five minute time period. The five minute time period should commence when the bid or offer is entered on the screen.
To view the full Guidelines, please visit:
