The Fair and Effective Markets Review (FEMR) was established by the Chancellor in
June 2014, to conduct a comprehensive and forward-looking assessment of the way wholesale financial markets operate, help to restore trust in those markets in the wake of a number of recent high profile abuses, and influence the international debate on trading practices.
In August 2014, the Review made recommendations to HM Treasury bring a further seven major UK-based FICC benchmarks into the scope of the UK legislation originally put in place to regulate LIBOR. These recommendations were implemented by HM Treasury on 1 April 2015.
On 27 October 2014, the Review published a consultation document examining what needs to be done to reinforce confidence in the fairness and effectiveness of the Fixed Income, Currency and Commodities (FICC) markets.
On 10 June 2015, the Review published its Final Report, setting out 21 recommendations to:
- Raise standards, professionalism and accountability of individuals
- Improve the quality, clarity and market-wide understanding of FICC trading practices.
- Strengthen regulation of FICC markets in the United Kingdom.
- Launch international action to raise standards in global FICC markets.
- Promote fairer FICC market structures while also enhancing effectiveness.
- Promote forward-looking conduct risk identification and mitigation.
On 28 July 2016, the Chairs of the Fair and Effective Markets Review published a full implementation report to the Chancellor of the Exchequer, the Governor of the Bank of England and the Chairman of the Financial Conduct Authority, detailing the significant progress that has been made to implement the Review’s recommendations.