FCA Updates Webpage on Reporting Market Abuse

On June 12, the UK Financial Conduct Authority (FCA) updated its webpage on how firms and trading venues should report suspected market abuse (the Webpage).

Under the Market Abuse Regulation (MAR), all FCA-regulated firms and individuals professionally arranging or executing transactions in certain financial instruments, and operators of a trading venue, must report suspicious transactions, orders, and ‘attempted market abuse’ (known as suspicious transaction and order reports (STORs)) to the FCA without delay. A suspicious transaction or order is one where there are ‘reasonable grounds’ to suspect it might be market abuse, such as insider dealing or market manipulation. Firms and trading venues should make sure that staff, especially those responsible for managing financial crime risks, are given the appropriate training to identify suspicious transactions and orders.

The updated Webpage includes a new section on submitting ‘market observations.’ The FCA requests that firms and trading venues submit a market observation to notify it of activity they have observed in the market that is not required to be reported as a STOR. For example, where the firm or trading venue is not involved in the activity it therefore does not have complete information.

Whether a STOR or a market observation, firms should submit their notification to the FCA by logging in to the FCA’s online filing portal called FCA Connect, and complete the market observation form or the STOR form under the ‘Notifications’ tab.

The Webpage is available here.

FCA Statement on Amendments to MiFID II Position Limits

On June 16, the FCA published a statement setting out the changes it has made to a number of position limits for commodity derivative contracts traded on ICE Futures Europe (the Statement).

The Statement includes a table that clearly outlines the changes to the relevant contract’s spot month position limit and other months’ position limit. Where position limits have been increased, this change will apply immediately. In contrast, the FCA has granted a two-months’ notice period for the application of position limits that have been reduced.

In the Statement, the FCA notes that the position limits are published in advance of the publication of the European Securities and Markets Authority (ESMA) opinions on position limits, and they may change in light of an ESMA opinion, or in the event that the FCA decides it is necessary.

The Statement is available here.