In July 2016, HM Treasury, the Bank of England, and the FCA published their Fair and Effective Markets Review Implementation Report (FEMR).
FEMR is part of the UK’s response to the 2008 financial crisis and seeks to restore trust in Fixed Income Currency and Commodities (FICC) markets. As customers and counterparties of the banks, corporate treasurers are users of the FICC markets. One of the main recommendations of the FEMR was the establishment of the FICC Market Standards Board (the FMSB).
The ACT is engaged with the FMSB. Our Chief Executive Colin Tyler sits on the FMSB Advisory Council, and ACT members and members of the ACT Policy & Technical department sit on the Sub-Committees which review specific FICC market activities. Our engagement is alongside personnel of market firms as well as market trade associations and legal, accounting, and specialist consulting firms.
The Interim Chair of the FICC Markets Standards Board, Elizabeth Corley, has thanked the ACT for its involvement in the FMSB in a letter to FEMR principals issued on 27 June 2016. The letter sets out what the FMSB has achieved since it was established one year ago. Section 1.2 of the letter on Committees states:
The involvement of the Association of Corporate Treasurers has been key and our particular thanks go to them and to the executives from individual listed companies for their active engagement in the FMSB and the Sub Committees.
The work of the FMSB on foreign exchange markets links into that of the BIS Foreign Exchange Working Group of central bankers which seeks to develop a single Global FX Code. Further details can be found on page 9 paragraph 29 of the FEMR Implementation Report. The ACT Policy & Technical team are represented on one of the Bank of England’s market participation working groups to ensure the corporate’s viewpoint is taken into consideration.
Additionally, the ACT Policy & Technical team are representing corporates on the drafting of the new Securities Lending, Repo and Money Markets Code. See page 8 paragraph 17 of the FEMR Implementation Report.
We are pleased to support these initiatives to raise standards across the markets on which our members rely.
