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Firms and the authorities have made significant progress in implementing the recommendations of FEMR. Report‘s efforts are starting to have a positive impact in making markets fairer and more effective. The rapid technological and structural innovation in FICC markets means an ongoing approach to risk identification and mitigation is crucial.
Industry must take a leading role in monitoring developments and ensuring that market infrastructures and practices keep pace with innovation. The authorities stand ready to support industry’s efforts in this regard and catalyse reform held back by private sector co-ordination failures.
The Bank will continue to focus on issues affecting the effectiveness of FICC markets. The Bank will also continue to support the move to risk-free rates and the development of industry codes.
The FCA will continue to take a forward looking and strategic approach to its supervisory work, which will be greatly enhanced in future by improved new regulation for FICC markets and benchmarks, and the strengthened and expanded accountability regime which from 2019 will apply to all authorised financial services firms in the UK.
HM Treasury will keep under review the open FEMR recommendations relating to new legislation and assess the case for action following the settlement of the UK’s new relationship with the European Union.
The Markets Forum 2018 will bring together a diverse group of leaders from across industry and the authorities. We hope this event will provide an opportunity to engage in open dialogue on changing market structures, the emerging risks and challenges, and how industry and the authorities can continue to work together to address vulnerabilities.