UK FCA MAR Compliance

On Dec. 17, UK FCA issued Market Watch 58 on MAR compliance review.

  • Reviewed industry implementation of MAR, outlined findings, offered clarification.
  • Considered manufactured credit events in the credit default swap (CDS) market.

MAR Compliance

  • Expect firms to be fully compliant with obligation to undertake quote surveillance.
  • FCA issued a reminder about suspicious transaction and order reports (STORs).
  • Expect surveillance across all asset classes, including fixed income, commodities.
  • Discussed market soundings, insider lists, obligations for issuers under MAR rules.

Manufactured Credit Events

  • On the wrong side of the line, goes against intended purpose of CDS instruments.
  • Manufactured credit events may in certain circumstances constitute market abuse.