The Financial Markets Standards Board (FMSB) today marks the tenth anniversary of the UK’s Fair and Effective Markets Review (FEMR) with the launch of a new paper, Future of financial markets. The paper examines how changes in market participation, execution, new asset classes and geography are reshaping markets and associated conduct risks.
FEMR was launched in 2015 by the Bank of England, the Financial Conduct Authority and HM Treasury to strengthen confidence in UK financial markets and ensure they serve the real economy. One of its lasting legacies was the creation of FMSB, which has since grown into a global standards-setting body, bringing together market participants and working with regulators worldwide.
FMSB develops Standards, Statements of Good Practice and horizon-scanning reviews to address areas of market practice where regulation may be absent or unclear. Its recent global review of pre-hedging, for example, has helped inform debate between Members and regulators.
The paper identifies four key thematic shifts:
- Market participation – Growth of non-bank intermediation and the move away from universal service provision.
- Trade execution – Electronification, the rise of platforms, data as a market enabler, and the early adoption of AI.
- New asset frontiers – Expansion of FICC, emergence of digital assets, and blurred lines between institutional and retail markets.
- Geography – New hubs in Europe, the Middle East and Asia, alongside gradual de-dollarisation and increasing multi-polarity
Jonathan Moulds, Chair of FMSB, said:
“Financial markets are evolving quickly, and the hard lessons of the past must not be repeated. Risks are shifting from banks to asset owners, financial markets are expanding into digital assets and into a more dispersed global landscape, while technology is reshaping trading and making markets more complex and interconnected. Collaboration between the private and public sectors, through standard-setters like FMSB, is essential to deliver fair and effective markets. FMSB’s role has never been more important, and today’s paper is a call to action for Members and new participants to help shape the future of financial markets.”
The full publication is available at: www.fmsb.com
In the course of researching and producing the paper FMSB interviewed and drew on insights from more than 60 market practitioners and policymakers globally. We would like to thank all those who contributed for their time and expertise. We would also like to express our thanks to FMSB Partner Member Oliver Wyman for their support.
Notes to editors
About FMSB:
- Financial Markets Standards Board (FMSB) is an industry-led, member-funded global standards body for the wholesale financial markets.
- Created out of the Fair and Effective Markets Review (FEMR) in 2015, FMSB brings together its Members from banks, investment institutions, infrastructure and information providers, corporates, pension funds and interdealer brokers, to develop Standards, Statements of Good Practice and Spotlight Reviews that raise standards of behaviour, competence and awareness – to promote the fairness and effectiveness of global wholesale financial markets.
- As well as standard setting, subject matter experts from member firms debate issues in working groups and are able to benchmark their approaches against industry peers, thus helping to lift standards of conduct.
- FMSB’s full membership list is here
For more information:
Laura Conaghan
+44 (0)7929 72669
Laura.conaghan@fmsb.com