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FCA on oversight of member controls by RIEs and MTFs

The Financial Conduct Authority (FCA) has published a Guidance Consultation on the approach it expects recognised investment exchanges (RIEs) and multi-lateral trading facilities (MTFs) to take in respect of the oversight of member firm’s systems and controls to monitor compliance by their users.   The FCA expects the RIE or MTF to:

  • operate a proportionate and risk-based monitoring system;
  • operate a proactive approach which goes beyond a reactive examination of member-level systems and control failures once they have occurred; and
  • take appropriate and swift action where there is evidence of inadequate systems and controls amongst one of its members, even if these have not yet had a negative impact on the market.


The deadline for comments is 21 May 2013.





Comments: (2)

Neil Crammond
Neil Crammond - DIVENTO FINANCIALS - London 03 May, 2013, 12:17Be the first to give this comment the thumbs up 0 likes

Wow ; despite consatant complaining to FSA that exchanges have no interest on halting market abuse in any form as will halt volume and profit ;this new regulator decides otherwise !

    Perhaps they might take some advice and ask traders in the market place ; not market makers or others favoured by exchanges ; about  washing ;layering ;crossing and flipping ; which now accounts for over 30% of the volume .

 As independent traders we have been asking for regulators to look at current trading screens as abuse is that obvious ; rather than ring up exchanges . Sadly I cannot see any swift action taken  by FCA ; on the grounds that I waited 2 years for a reply on libor abuse by regulators .

Perhaps if FCA inspected the exchanges and saw their market supervision dept watching television rather than the markets might aid our cause !

A Finextra member
A Finextra member 03 May, 2013, 12:40Be the first to give this comment the thumbs up 0 likes

Martin Wheatley had a very succesful career at the London Stock Exchange he is also well versed in City culture and understands better than most regulators the various ways that Stock exchanges and other execution facilities can be manipulated or supposedly innocently used. I have known him for years and i think we can expect a new broom with strong bristles 

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