The FICC Market Standards Board (FMSB) has today published an important research document called the Behavioural Cluster Analysis looking at the behavioural patterns in cases of misconduct in financial markets over a long period of time. It is clear from the research that the same behavioural patterns keep repeating and recurring.

A team at Macfarlanes worked with the FMSB on this project. We think the BCA will be a valuable resource for financial market participants and their advisors. It is a practical document and we hope it will become a useful reference point for financial services firms.

{This is the conclusion of a study carried out on 390 cases of financial market misconduct stretching back 225 years by the body established to help clean up the City of London after a string of financial scandals.The Fixed Income, Currencies and Commodities Markets Standards Board, which was set up three years ago by the Bank of England and Treasury in response to the Libor interest rate and foreign exchange rigging scandals, said its research could improve systems and controls to catch bad actors in future.

Mark Carney, governor of the Bank of England, said the review was “fundamental to identifying the root causes of misconduct and to finding ways to reinforce the collective memory of the market about what constitutes acceptable conduct and practice”.