Sunday, 1 November 2015

What Is The Primary Role Of The QVMAC?

We received this email during the work and it contains an interesting view on the role of  the Queen Victoria Market Advisory Committee. 

The QVMAC, what is its primary role?

I would contend that the primary role of the QVMAC is not the protection of any individuals or groups ( be they traders, management or others ) but to protect THE MARKET and provide valuable contributions to discussions concerning current and future directions for the market.

Trader insights are important, actually invaluable because as they come from a trader perspective they are essential in providing a more complete picture as to what the true interests of The Market might be. Without the viewpoints and insights of traders some very questionable decisions would probably be made.

These insights and the advice provided however will not always align with individual or group opinions or interests, whether they be traders or others and may at times conflict directly or indirectly with these group or individual interests.

( Since the members of the QVMAC have the advantage of being privy to processes and discussions which are not generally accessible to traders and others they are rightly expected to give much deeper thought and analysis to the problems and difficulties confronting the market and as a result need to be able and willing to see and discuss issues from a broad perspective. This approach is essential if it is to provide sound advice that can be taken seriously and thus truly assist and be part of the decision making process. )

Fundamentally the logic here is that QVMAC members, as individuals, need to consider individual and to some extent collective business interests as only one of the elements under consideration when involved in discussions regarding the market.

Trader interests / QVM Pty Ltd company interests / CoM interests will often be relegated to second, third or at times fourth place depending on the issue under discussion thus showing a clear understanding that the primary goal of the QVMAC is to protect and ensure the betterment, progress and future of THE MARKET ( all other entities come after that ). 

( Clearly in many instances an initiative that ‘harms’ traders or the company will often impact negatively on The Market so the advice given will rightly reflect that. In other cases the best outcome for the market may necessitate some ‘short term / long term pain’ for individual or groups of traders ( or the company / CoM ) and the role of the QVMAC would not necessarily be to prevent that, but to ensure that all efforts are made to minimise that impact and ensure that the decision is implemented in the most trader friendly way possible. )

The same basic principles applies to all at the market. Just as it is not the role of management to ‘protect’ individual or group interests within management when they conflict with the interests of The Market so it is with trader members of the QVMAC to do likewise when dealing with trader issues. 

To do otherwise, that is to come into meetings with only trader interests at heart with the intent of protecting trader interests at all costs would be as detrimental to The Market as QVM Pty Ltd engaging in meetings with only their bottom line or the advantage of the company in mind ( The same is true for the Board and for CoM ).
This type of approach would make all parties potentially guilty of ‘conflict of interest’.

For the Queen Victoria Market Advisory Committee to be truly effective, for its advice to be taken seriously and to carry true weight, it must provide valuable unbiased advice and insights that go beyond the individual or collective interests of any and all groups associated with the market. If it is unable to do that it will ultimately fail as an advisory committee and will continue to be at loggerheads and be locked into a negative adversarial relationship and position on many if not most issues under discussion.