Is FICC review based on pragmatism or politics?

Author: Danielle Myles | Published: 7 Nov 2014

Opinion is divided on whether the Bank of England-led Fair and Effective Markets Review(FEMR) is driven by policy, or a belief that more needs to be done to improve market discipline.

Some City lawyers have praised the review as pragmatic and well timed, noting that the authorities are embracing an industry-led response. Others find it hard to look past the political overtones.

The FEMR was launched by the Chancellor in June. Its consultation document, released on October 27, asks 49 questions on how to reinforce confidence in the fairness and effectiveness of fixed income, currency and commodity (FICC) markets.

The paper borrows from many themes established by the Parliamentary Commission on Banking Standards in its 2013 paper Changing Banking for Good.

"The idea of taking those concepts, to which there is a degree of comfort in the banking context, and extending them to create stronger FICC markets is a really...