Image Copyright: Financial Conduct Authority
The FCA has published its 65th Market Watch Newsletter, highlighting three areas that require attention in the fight against market abuse:
Confidentiality of information requirements
Looking at inappropriate handling of information requirements issued by the FCA can hinder, or even compromise, our preliminary reviews of, and investigations into, suspected market abuse.
Legally privileged documentation
Reminding market participants that material that could be subject to Legal Professional Privilege (LPP) should not be included in suspicious transaction and order reports ("STOR" reports) or market observations submitted to the FCA. If it is included, market participants risk losing or waiving any claimed legal privilege.
Transaction reporting
Highlighting several data quality issues surrounding MiFIR transaction reporting (in addition to those highlighted in Market Watch 59 and 62), including:
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Unreported Transactions, where firms have misinterpreted the reporting requirements or lack the infrastructure to report on a T+1 basis;
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Clarification of the immediate underlying reporting requirement;
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Inconsistent dissemination of trading venue transaction identification codes (TVTICs) by trading venues to investment firms;
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Errors in the use of country of branch fields; and
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Ongoing reconciliation between transaction reports and front office records to ensure reporting accuracy. The transaction report acceptance rate presented by the FCA should not be considered as a standard for assessing the completeness and accuracy of transaction reports.
READ NEwsletter
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FCA's 64th Market Watch Newsletter looks at transaction reporting issues as firms prepare for the end of the Brexit transition period.
FCA Market Watch Newsletter 63 - Covid Related Market Conduct & Transaction Reporting Issues
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