WHY YOU NEED
TO READ THE
The very idea of a publication or proposed set of
guidelines issued by a regulatory authority induces a
reflexive action that queues us up for a snooze fest.
POINTS FOR DISCUSSION
As a standard best practice for your job sounds about as
inviting as a long winter’s nap curled up beside a hibernating
bear. No thank you!
The Financial Conduct Authority (FCA) issues
Market Watch as a regular publication for good
reason: there is always something changing. Over
51,000 financial institutions are governed by the
acts of the FCA. With all those regulations in play,
Market Watch notifications are the only way to
efficiently broadcast changes.
The FCA analyses suspicious
transaction and order reports
(STORs) and compares them
against order book data
collected from trading platforms
across the UK.
NUMEROUS SURVEILLANCE ALGORITHMS
HAVE BEEN DEVELOPED BY THE FC
One of these recognises “spoofing” by traders. When the
FCA detected aberrant behavior, they reported it to the firm
which institutionalised enhanced monitoring and training for
its trading staff. Market Watch 67 then goes on to publicly
call out traders, including executives, for illicit activities. It’s
not a list that you want to be on – even if the whole industry
isn’t actively reading the publication – because there is
certainly a large cohort that does keep up with it.
MARKET WATCH 68
Begins with a rather ominous proclamation: “We are
concerned that requirements for market abuse
surveillance are still not being fully met, 5 years after
the introduction of the Market Abuse Regulation
(MAR) in 2016.” With an opener like that, you just
know that changes are ahead – and they’re not going
to be good. The agency has identified some gaps in
market abuse surveillance for some asset classes.
AREA OF INTEREST
TO THE FCA
Record keeping is an obvious aspect of compliance.
However, if the task is not automated, and the broker
is not upholding their responsibilities to enter all the
communication associated with