October 22, 2018

October 22, 2018

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October 19, 2018

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FCA Publishes Issue 55 of Market Watch Newsletter

On December 12, the UK Financial Conduct Authority (FCA) published issue 55 of Market Watch, its newsletter on market conduct and transaction reporting issues.

Similar to Issue 54 of Market Watch, Issue 55 contains articles of relevance to the implementation of the revised Markets in Financial Instruments Directive (MiFID II) and Markets in Financial Instruments Regulation (MiFIR). The articles provide a useful reminder of the following areas in the lead up to the implementation of MiFID II and MiFIR on January 3, 2018:

  1. Transaction reporting at the block or allocation level—transaction reports of an investment firm in a chain should accurately reflect the elements of the execution that have been confirmed as an execution by their immediate counterparty:

    1. if the immediate counterparty confirms the block as the execution, the investment firm should report the block;

    2. if each allocation or market execution is confirmed as an execution, then the investment firm should also report each allocation or market execution.

  2. Applicable legislation from January 3, 2018—firms are reminded of legislation relating to transaction reporting, order record keeping for trading venues and clock synchronization.

  3. Data Reporting Service Providers (DRSPs) supervision forms—DRSPs are required to notify the FCA of their initial authorization and other notifications, all of which form the basis of the FCA’s supervisory forms, such as the FCA’s Material Change in Information Form.

  4. Transitional arrangements relating to transaction reporting—investment firms are reminded that they have an obligation to report transactions as quickly as possible and no later than the close of the working day following the day that the transaction took place (T+1).

  5. Application of the Market Abuse Regulation to Emission Allowance Market Participants (EAMPs)—EAMPs who meet the thresholds of 6 million tonnes of carbon dioxide equivalent per year or a rated thermal input of 2,430 megawatts, are reminded that they will need to disclose inside information on emission allowances they hold. EAMPs must also notify the FCA of any delayed notification. Additionally, persons discharging managerial responsibilities within EAMPs will need to notify the FCA of transactions conducted on their own account relating to emission allowances, auction products based on them, or derivatives related to them.

©2018 Katten Muchin Rosenman LLP


About this Author

Neil Robson, private equity fund managers counselor, Katten Law Firm, London

Neil Robson, a regulatory and compliance partner with Katten Muchin Rosenman LLP, focuses his practice on counseling hedge and private equity fund managers and other investment advisers on operational, regulatory and compliance issues. He regularly addresses Financial Conduct Authority (FCA) and EU authorization and compliance under both the EU Alternative Investment Fund Managers Directive (AIFM Directive) and MiFID, cross-border issues in the financial services sector, market abuse, anti-money laundering and regulatory capital requirements, formations and buyouts of...