AFME in Europe ( the Investment Association ) and the Investment Association have produced a new code of conduct which reportedly will lead to an improvement in the efficiency of equity capital markets. the Investment Association is the first to agree to follow the new code and the new categorisation imposed by it. Simon Lewis, chief executive of AFME, added that the consensus between fund managers and brokers was ‘encouraging’. The code differentiates between 'indications of interest' which brokers use to signal an interest in a trade at a given price. Those which are settled immediately without market impact will be categorised as ''client natural' whereas those which may involve information leakage and potential market impact will be labelled as 'potential'.
AFME in Europe ( the Investment Association ) and the Investment Association have produced a new code of conduct which reportedly will lead to an improvement in the efficiency of equity capital markets. the Investment Association is the first to agree to follow the new code and the new categorisation imposed by it. The code differentiates between 'indications of interest' which brokers use to signal an interest in a trade at a given price. Those which are settled immediately without market impact will be categorised as ''client natural' whereas those which may involve information leakage and potential market impact will be labelled as 'potential'.