The FCA has published a new web page concerning its supervisory priorities arising from the Market Abuse Regulation’s (MAR) suspicious transaction and order reports (STOR) regime.
The STOR regime is outlined in Article 16 of MAR and the MAR Delegated Regulation of 9 March 2016 (containing regulatory technical standards for the appropriate arrangements, systems and procedures as well as notification templates to be used for preventing, detecting and reporting abusive practices or suspicious orders or transactions).
In the Delegated Regulation, the European Securities and Markets Authority prescribes a notification template to be used by anyone notifying a Member State competent authority of any suspicions. The FCA is building a system which firms and trading venues will be required to use to report STORs to it. Notifications are to be made using the FCA’s Connect system.
The FCA will continue to take a risk-based supervisory approach, taking into account the position of particular market participants and the markets in which they operate. The FCA notes that the new STOR regime may require a number of significant technology changes for some notifiers, particularly in relation to surveillance of quotes. Based on the Delegated Regulation, the FCA anticipates that the final EU legislation will include a definition of an order which incorporates quotes.
The FCA also understands that some notifiers may not be in a position to deploy fully effective surveillance across all types of quotes as required by MAR by 3 July 2016. Where notifiers have not been able to do so the FCA expects them to demonstrate that they have made best efforts to achieve full compliance, and be ready to explain how approaches will be further developed.
View Supervisory priorities arising from the MAR STOR regime, 29 April 2016