Category Archives: Uncategorized

The UK’s Fair and Effective Markets Review one year on

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On 10 June 2015, the Bank of England (“BoE”), HM Treasury (“HMT”) and the Financial Conduct Authority (“FCA”) published the final report on the “Fair and Effective Markets Review” which had been launched one year ago with the aim of reinforcing confidence in the wholesale fixed income, currency and commodity (“FICC”) markets. During this period, a wide consultation was carried out with many entities and organisations, including some based outside the UK.

The report provides an analysis of the causes of recent market misconduct and other sources of perceived unfairness in FICC markets and evaluates the impact of reforms already in force or underway. It sets out 21 recommendations for further work and action.

The report states that its recommendations are shaped around the following key principles:

  • individuals active in FICC markets should be more accountable for their actions;
  • firms active in FICC markets should take greater collective responsibility for developing and adhering to clear, widely understood and practical standards of market practice, in regular dialogue with the authorities;
  • the UK authorities should extend the regulatory perimeter, broaden the regime holding senior management to account and toughen sanctions against misconduct;
  • international authorities should collaborate to raise standards in global FICC markets;
  • market participants and authorities should work together in the years ahead to (i) promote fairer FICC market structures while also enhancing effectiveness and (ii) ensure a more forward-looking approach to the identification and mitigation of conduct risks.

EACT seeks clarification on MiFID 2 own account exemption

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EACT has written to EP for a clarification of Markets in Financial Instruments Directive (MiFID 2) so that non-financial companies transacting on their own account on electronic trading platforms continue to be exempt from MiFID licensing requirements. EACT’s concern is that the new wording of the exemption for trading on own account in Article 2 and the narrowing of its scope would have the unintended consequence of excluding non-financial companies from the scope of the exemption. For more informations visit EACT seeks clarification on MiFID 2 own account exemption.

Source: Dentons

Bank of England (PRA) Publishes New Webpages on Strengthening Accountability

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The Senior Mangers Regime and Certification Regime will come into force on 7 March 2016. The Bank of England has published a new webpage [View Now] that details the forms and accompanying guidance notes for the new regime. Links to the new forms are also contained in the new rules are published. Firms should refer to the rules, supervisory statement and statement of policy to determine which forms they need to submit. [Read More]

Source: Eversheds LLP