Market Abuse Surveillance: A Reminder For Prop And Client Traders

Author:Mr Harvey Knight, Kirsten Lapham and Colin Smith
Profession:Withers LLP
 
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Patrick Spens, head of market monitoring, at the FCA recently spoke about the FCA's market surveillance tools and expectations, which serves as a reminder to firms to ensure that they have adequate systems and controls to detect market abuse and suspicious transactions, either through proprietary or client trading.

Turning to the FCA's Suspicious Transaction Report (STR) Regime, Mr Spens emphasised that STRs are a mandatory requirement under Article 6(9) of the Market Abuse Directive (in the UK through SUP 15.10) and require all members of the trading chain to report any suspicious or potentially abusive behaviour to the FCA. STRs should be submitted for all financial instruments such as qualifying investments on prescribed markets and related investments, for example, bonds, equities, contracts for difference, credit default swaps, warrants, options and futures.

Mr Spens reminded firms that the FCA will continue to build on and...

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