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.
- 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.