FICC stands for Fixed Income, Currencies, and Commodities. It refers to a segment of the financial markets where these three asset classes are traded. Fixed income typically includes bonds and other debt instruments, while currencies involve the trading of different national currencies. Commodities encompass physical goods like oil, gold, and agricultural products. FICC is crucial for investors and institutions as it provides opportunities for diversification and risk management. By participating in these markets, investors can hedge against inflation, interest rate changes, and currency fluctuations, helping to stabilize their overall investment portfolios.