The FCA has published Finalised Guidance 15/6: Multilateral Trading Facilities (MTFs) – Dear CEO Letter and FCA Good Practice Observations on MTF Rulebooks (FG15/6).

In FG15/6 the FCA sets out a summary of the feedback it received to its December 2014 Guidance Consultation relating to the market conduct rules for MTFs (MAR 5), its response to the feedback, and the finalised guidance.

In FG15/6 the FCA notes that overall, respondents were supportive of the draft guidance, welcomed its work to develop industry understanding of good practice in this area and agreed that an MTF operator should have a clearly labelled rulebook in place. As some respondents requested further clarification or expressed disagreement with certain aspects of the draft guidance the FCA has made amendments in the following areas:

  • document library of supporting information;
  • fees and incentive schemes;
  • participant acknowledgement of the MTF rulebook;
  • instrument eligibility criteria – instrument list; and
  • settlement / finalisation of transactions.

The finalised guidance sets out the key MAR 5 requirements and the FCA’s Good Practice Observations relating to MTF operator rulebooks. The FCA expects that an MTF operator will have a rulebook in place and have it publicly available on the operator’s website.

View Finalised Guidance 15/6 – Multilateral Trading Facilities, 15 April 2015