Summary of Market watch 74 release by the FCA
July 26, 2023
On 25th of July 2023 the FCA published its Market Watch 74
Here is a summary of the key points of this report.
Reconciliations and Breach Notification:
- The FCA reminds firms of their obligations for reconciling records, correcting reports, and notifying about transaction breaches.
- The data depicts an increased number of firms requesting data extracts, while the number of firms requesting breach notifications has fluctuated since 2018.
Identification of Decision Makers:
- Firms must determine those responsible for investment and execution decisions. Seniority shouldn’t be the only determinant – practical involvement is key.
- FCA notes inconsistencies and highlights the importance of adhering to ESMA guidelines.
- The FCA encourages firms to ensure their arrangements of submitting transaction reports meet the requirements of Article 4 of RTS 22.
- Firms must be consistent in price and quantity notations, matching market conventions.
Transactions & Trading Venues:
- Clarity provided on populating venue fields for off-exchange transactions.
Looking through the Chain:
- Firms are reminded of the correct reporting protocols, especially concerning counterparties.
Reporting Instrument Details:
- Emphasis on accurate and complete details for transactions in financial instruments.
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