On October 27, 2014, the UK’s Fair and Effective Markets Review ("FEMR") invoked a consultation on the fairness and effectiveness of the Fixed Income, Currency and Commodities (“FICC”) markets and ways in which those markets might be improved. FEMR, which is a review undertaken by the BoE, PRA and FCA: (i) proposes to define the terms "effective" and "fair"; (ii) seeks views on where fairness and effectiveness in the FICC markets are most deficient, focusing on six areas – market microstructure, competition and market discipline, benchmarks, responsibilities, governance and incentives, and surveillance and penalties; (iii) seeks feedback on the extent to which regulatory, organizational and technological changes recently introduced are likely to address deficiencies in effectiveness and fairness; and (iv) requests input on what other steps could be taken to improve fairness and effectiveness in the FICC markets. The consultation closes on January 30, 2015 and FEMR will publish its recommendations in June 2015.

The consultation paper is available at: http://www.bankofengland.co.uk/markets/Documents/femr/consultation271014.pdf.