FEMR – a watershed moment for FX?

At present the Fair and Effective Markets Review (FEMR) has produced just a report. But what might it achieve over the longer term for foreign exchange markets? Richard Willsher investigates.

The FEMR report, prepared by HM Treasury, the Bank of England and the Financial Conduct Authority was published on 10th June 2015. It was launched by Chancellor of the Exchequer and the Governor of the Bank of England and the review was designed to “…reinforce confidence in the wholesale Fixed Income, Currency and Commodities (FICC) markets in the wake of the serious misconduct seen in recent years; and to influence the international debate on trading practices.” What constitutes “fair and effective markets” were clearly defined, the definition taken from the report is highlighted in our boxout panel on page 32. Everyone we spoke to in researching this article welcomes its findings. Some described its aims and objectives as “noble” but most queried whether the report would ever have sufficient “teeth” to bring about the changes to the UK and global FX market that it sets out to achieve. Who benefits? The thrust of the report’s findings is...continued

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