Question to the HM Treasury:

To ask Her Majesty’s Government whether any allegations or evidence of market abuse have been brought to their attention in connection with the operation of the asset purchase scheme used to implement quantitative easing; and whether the Bank of England has investigated its own role in the administration of the scheme.

The Financial Conduct Authority (FCA) announced on 20 March 2014 that it had taken enforcement action against an individual for the manipulation of a UK government bond in the run up to a Bank of England Quantitative Easing (QE) operation on 10 October 2011.

The FCA’s investigation found this was the action of one trader on one day, and there was no evidence of collusion with traders in other banks. The FCA acted following information initially referred to it by the Bank of England, demonstrating the benefits of the Bank working in close co-operation with the FCA.

The Bank thoroughly reviewed its processes at the time, in addition to its ongoing monitoring and examination of QE operations.

The Government is clear that misconduct in financial markets is unacceptable and takes all allegations of misconduct seriously. Any evidence relating to the potential manipulation of financial markets should be passed to the FCA.