New Asia Pacific IOI Charter
New Asia Pacific IOI Charter; industry consensus being facilitated
Extensive work has been done in Hong Kong this year on a new industry-wide
Charter governing APAC best practices for equity IOIs. This has taken the form
of more than six months of pan-industry collaboration, which came about following
the Quorum 15 Hong Kong equities meeting in May. The objective of the Charter
is to improve standards across the region, creating a more consistent approach across
sell-side and buy-side. At the Q15 May meeting, this lack of consistency was cited as a
key reason for a loss of confidence and trust between buy-side and sell-side in the IOI
and facilitation process, and the group agreed that action was needed.
To draft the Charter, Q15 is partnering closely with ASIFMA who is running a very engaged
sell-side working group, incorporating buy-side feedback through the process from both the
Q15 buy-side members, Asia Trader Forum (ATF) and the FIX Trading Community. The result
will likely take the form of a voluntary Charter based on the European AFME/ Investment Association
guidelines and adding further guidance and rules of engagement to level the playing field in APAC both
of definitions and conduct. This may be supported by additional due diligence questions which assist the
buy-side in dialogue with their sell-side counterparties on this topic.
Based on current progress we anticipate this should be finalised and move into implementation across the
APAC industry in Q1/Q2 2020.
Please contact us for more details on the Charter and this initiative.