Nevertheless, the group stated that if these recommendations were not acted on, authorities could conclude that a regulatory response was necessary to generate the desired improvement in market structure and conduct. Moreover, as a result of the investigations into the alleged misconduct, a regulatory response may be required and indeed, in the UK, FX benchmarks are now a regulated activity.
In December, we launched a detailed assessment of implementation of these standards. This is a very important task not just because this is the FSB’s first peer review, but also because of the importance and political dimension of this topic. We are on schedule to conclude this review later this month.