Tag: Fca

Statement on European Union referendum result

FCA – On 23 June, the UK voted to leave the European Union (EU). This has significant implications for the UK. The FCA is in very close contact with the firms we supervise as well as the Treasury, the Bank of England and other UK authorities, and we are monitoring developments in the financial markets. Much financial regulation currently applicable in the UK derives from EU legislation. This regulation will remain applicable until any changes are made, which will be a matter for Government and Parliament. Firms must continue to abide by their obligations under UK law, including those derived... continue reading

Not much news from the FCA on MiFID Implementing Measures

See here for a copy of the minutes of the last FCA MiFID II Implementation Trade Association round table meeting. As can be seen from one of the first items, there is still no concrete news on when we may see the latest version of the implementing measures, i.e. the Delegated Act and updates Regulatory … Continue reading →... continue reading

FCA MiFID II notes – some comments on timing

See here for a copy of the minutes from the FCA’s MiFID II Implementation Round Table.There are some interesting comments on the possible timing of changes to the Regulatory Technical Standards(RTS) around the Ancillary Activity test and Position Limits (20 and 21), which are important for the commodity and energy trading sector, as well as … Continue reading →... continue reading

MiFID II criticism

While we await further news on when we can expect clarity on MiFID II, there has been some further criticism in the ongoing debate on the rules. This article on the Reuters web site reports on comments made by Tracey McDermott, acting chief executive of the FCA on the position limits rules. Under MiFID II, most commodity … Continue reading →... continue reading

Benchmark legislation – FCA page

The new set of legislation around the management of benchmarks is moving towards entry into force, with the agreement last year between the trialogue around the legislation announced here on the Commission web site.  Following this the FCA have now created this web page that brings together information on the rules. The rules are intended to … Continue reading →... continue reading

FCA consultation on MiFID II

The UK’s Financial Conduct Authority (FCA) have issued a consultation paper on MiFID II, which can be found here. The consultation is the first in a series, and mainly covers topics related to secondary trading, such as the operation of venues (RM, MTF, OTF) as well as Systematic Internalisers (SI). It also touches upon  related topics … Continue reading →... continue reading

FCA review of commodity trading markets

The UK’s FCA (Financial Conduct Authority) have recently concluded a review of the commodity markets, with a focus on controls to prevent market abuse. The report can be found here. The report found quite a variance in the levels of governance, systems and culture across firms. While some firms were found to have good governance, … Continue reading →... continue reading

FCA’s “One minute guide” to MAR

The FCA have published this “one minute guide” to the Market Abuse Regulation (MAR), which will start to come in to force in the middle of next year. MAR  (and MAD II) is the successor to the original Market Abuse Directive which came into force several years ago. The rules span several anti abuse measures … Continue reading →... continue reading

Big fines for market manipulation – Should we panic now?

Last week saw the FCA fining 5 banks £1.1bn for the manipulation of indices covering the FX market. Once again, regulators are showing that they will not tolerate market abuse, and are making well known the fact that they mean business in their efforts to clean up the market. The energy and commodities industry is experiencing its own journey into this world. REMIT is specifically intended to address the issue of market abuse in the gas and power markets, and the new Market Abuse Regulation will strengthen this. So the question comes up once again: Should we panic? Should we... continue reading

Mercuria Unit to Be Regulated by FCA as JPMorgan Deal Nears

Bloomberg – Mercuria Energy Group Ltd. said one of its trading units fell under the U.K.’s Financial Conduct Authority for the first time as it seeks to expand services in European financial commodity markets. Mercuria Europe Trading Ltd. is authorized and regulated by the FCA under the Financial Services and Markets Act 2000, the Geneva-based company said today in an e-mailed statement. Mercuria, nearing completion of a $3.5 billion deal to buy JPMorgan Chase & Co. (JPM:US)’s physical commodity operation, joins Glencore Plc and Trafigura Beheer BV in having part of its business regulated by the FCA. After decades of... continue reading

Deutsche fined over 4.7M GBP for trade reporting errors – Is it time to panic? – Some thoughts

Last week the FCA published a final notice against Deutsche Bank fining them just over £4.7 million (after a settlement discount). The fine was for misreporting Equity CFD trades under MiFID for several years. The full notice can be seen here. The misreporting was inadvertent and the matter was rectified as soon as the mistake was uncovered. Never the less the fine was large. The question is, should that cause panic in the energy trading industry, where EMIR reporting has been going for just over six months? The fine was issued for getting the “buy/sell” flag the wrong way round, which is one data reporting field.... continue reading

Deutsche fined over 4.7M GBP for trade reporting errors – Is it time to panic? – Some thoughts

Last week the FCA published a final notice against Deutsche Bank fining them just over £4.7 million (after a settlement discount). The fine was for misreporting Equity CFD trades under MiFID for several years. The full notice can be seen here. The misreporting was inadvertent and the matter was rectified as soon as the mistake was uncovered. Never the less the fine was large. The question is, should that cause panic in the energy trading industry, where EMIR reporting has been going for just over six months? The fine was issued for getting the “buy/sell” flag the wrong way round, which is one data... continue reading

FCA updates its MIFID II web site section

The FCA have just updated their MiFID II web site, which contains a great deal of useful information. It can be accessed here.... continue reading

Annual EMIR Portfolio Reconciliation day

EMIR requires that Non Financial Counterparties under the clearing threshold (NFC-) reconcile their portfolios of uncleared OTC trades once a year, for portfolios of 100 trades or less (quarterly otherwise). The 15th March is both the deadline set in the ESMA Q+A for the annual reconciliation, and also the day on which those under the ISDA protocol generally carry it out. Many in the market are not fully up to speed on portfolio reconciliations, and are relying on patchworks of spreadsheets and emails. It will be interesting to see how it goes.  Do not forget that the FCA have also set... continue reading

We’re back! Some interesting articles and updates

We are back after a few days off, and there are quite a few interesting articles and updates: LEIs – This interesting article in The Trade news on LEIs looks at how there is a divergence between the ESMA requirement and the FCA requirement, the surge in registrations around GLERT and where things are likely to end up. EMIR Readiness – Rule Financial have posted an article on how although GLERT has passed, it is not over yet. MiFID II – There is another useful summary on Mondaq here. RegTechFS also has an interesting post on transparency, and the process... continue reading

U.K. FCA: Commodities Houses Pose Oversight Challenges

Reuters, by Sara Kent. LONDON—The greater role being played in commodities markets by trading houses poses regulatory challenges and risks to market integrity, the U.K.’s Financial Conduct Authority warned Thursday. As tighter regulatory requirements have reduced banks’ activities in the sector, their places have been taken by specialist companies, many of which are closely held and have substantial operations outside direct oversight of market regulators. Banks including J.P. Morgan Chase & Co., Morgan Stanley  and Goldman SachsGroup Inc. are pursuing sales of various parts of their commodity businesses, primarily in physical trading, transportation and storage. Into the breach step companies... continue reading