Consultation outcome

UK Wholesale Markets Review: a consultation

• From: HM Treasury
• Published: 1 July 2021
• Last updated: 1 March 2022 — See all updates

This was published under the 2019 to 2022 Johnson Conservative government

This consultation has concluded

Read the full outcome

Wholesale Markets Review consultation response

PDF, 478 KB, 49 pages

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Detail of outcome

The government is taking forward reforms to the UK’s financial services regulatory framework for capital markets. These aim to ensure that the UK’s regulatory regime for secondary markets is fair, outcomes-based and supports competitiveness, whilst maintaining the highest regulatory standards. They also take advantage of our newfound regulatory freedoms since leaving the EU.

The government received 78 responses to the consultation. This document summarises the responses to the issues set out in the consultation and explains the government’s approach after considering those views.

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Original consultation

Summary

The Government is carrying out a review of the UK’s regime for wholesale capital markets. This consultation will run from 9am on 2 July to 11:45pm on 24 September.

This consultation ran from
9am on 2 July 2021 to 11:45pm on 24 September 2021

Consultation description

This consultation considers how the UK’s regime for wholesale capital markets can be reformed to deliver a framework that is fair, outcomes-based and supports openness and competitiveness, whilst maintaining the highest regulatory standards.

It outlines the government’s proposals to clarify the regulatory perimeter to ensure the market can operate in confidence, and to remove requirements that limit firms’ ability to access the most liquid pools of capital where they can get the best outcomes for investors. The consultation considers how the transparency regime for fixed income and derivatives markets can be recalibrated to ensure it is proportionate to the characteristics of these markets. It finally proposes reforms to the UK commodities regime as well as amendments to the market data regime, to ensure that market activity is not unnecessarily restricted and to enable participants to identify the best available prices, respectively.

In addition to enhancing the effectiveness of our current regulatory framework, and in line with the Chancellor’s vision for financial services, the consultation also considers how the Government can best ensure that the UK’s approach to capital markets regulation enables firms and regulators to address the challenges and opportunities of the future, as well as the present.

Documents

UK Wholesale Markets Review: Consultation

Ref: ISBN 978-1-911686-06-4, 3141

PDF, 669 KB, 76 pages

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Published 1 July 2021
Last updated 1 March 2022 + show all updates

1. 1 March 2022

   Consultation Response added

2. 1 July 2021

   First published.