AFMA Code of Ethics & Code of Conduct

The AFMA Code of Ethics & Code of Conduct clearly articulates the ethical principles for acceptable standards of behaviour in the OTC markets and promotes responsible decision making.

All AFMA member organisations and the individuals who represent them are expected to operate with a certain level of integrity, professionalism and competence. This ensures that the people using and relying on Australia’s OTC markets have complete confidence in the market participants representing them.

What does the Code cover?

The Code cannot address all possible circumstances, but focuses on the issues that AFMA believes need to be clearly articulated. For example:

  • Identifying conduct that may have been problematic in the past.
  • Where leaving something to good judgement may not be sufficient.
  • When strong expectation from regulators, counter parties or the market requires specific mention.

INDUSTRY PRACTICES AND GUIDANCE

Rate Contribution Best Practice Principles

These Principles are supplemental to the AFMA Code of Ethics and Code of Conduct and are designed to provide a common understanding around how organisations manage contributions of rates used in the calculation of financial benchmarks.

CPI Rebasing Guidance Note

The AFMA Inflation Products Committee has provided guidance with respect to the re-referencing/rebasing of the Australian Headline CPI effective 24 October 2012.

Information and Soundings Guidelines

These guidelines relate to the handling of confidential information and the conduct of market soundings specifically for equity capital market transactions occurring in Australia.

Product Approval Principles

These principles are intended to support the product development and distribution process within firms that issue retail structured financial products by clarifying the respective roles and responsibilities of the various parties involved in a manner that promotes the fair treatment of individual investors.

Repurchase Agreement (Repo) Trade Matching Best Practice Guidelines

Trade matching has evolved as a means by which the risks encountered in the repo markets can be reduced, particularly operational risk. When practiced, trade matching significantly reduces settlement delays and failures, and facilitates best-practice credit and operational risk management. These guidelines describe repo trade matching best practice, and by clarifying the responsibilities of the various parties involved in repo transactions they are designed to reduce, to the maximum extent possible, settlement delays and failures.

Key Risk Indicator Definitions & Guidelines

AFMA's Performance Measures Committee has prepared the KRI Definitions & Guidelines document to help members with day-to-day operational issues.

AFMA Carbon Benchmark Addendum Explained

This note sets out the purpose and methodology of the August 2010 Addendum and includes worked examples.

Change to Snowy Regional Boundary Guidance Note

Under instructions from the Electricity Committee, solicitor King & Wood Mallesons has prepared a Change to Snowy Regional Boundary guidance note, published 18 May 2007. It sets out a suggested approach market participants should take in relation to this change.