The Fair and Effective Markets Review (FEMR) was jointly established by HMT, the Bank of England and the Financial Conduct Authority with the primary objective of reinforcing confidence in the fairness and effectiveness of wholesale financial market activity conducted in the UK, as well as influencing the international debate in this area. On 10 June 2015 the FEMR published its Final Report. This provided an analysis of the root causes of recent misconduct and other sources of unfairness or ineffective operation in FICC markets; evaluated the impact of the significant reforms that were already underway; and set 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; and
- promote forward-looking conduct risk identification and mitigation.