Market abuse update - December 2014

The FCA has continued to build on the strong track record of civil and criminal enforcement action against abusive conduct and manipulation, notably in relation to insider dealing and benchmark manipulation.  The regulator remains committed to strong enforcement action and credible deterrence, and now benefits from enhanced powers and longer limitation periods to enable it to do so.  In addition to numerous high-profile enforcement actions and prosecutions, the FCA has also made public several warning notices and conducted nearly 100 private outcomes.  
 
Clients will also be starting to consider how they should effect the systems and controls changes that will be required when the new EU Market Abuse Regulation comes into application in July 2016.  Whilst the statutory framework is clear, ESMA's detailed requirements are still being consulted upon: what is abundantly clear is that controls and record-keeping requirements will be critical.

Finally, new domestic rules under consultation in the UK will further widen the regulatory net.  This briefing aims to assist firms in meeting the challenge of responding to developments in the market abuse regime.

In this edition, we consider:

• Recent and upcoming criminal prosecutions
• Insider dealing and improper disclosure cases and trends
• Recent cases involving market manipulation
• The FCA's first gilt manipulation enforcement action
• Market surveillance considerations for firms
• The Fair and Effective Markets Review's consultation on FICC markets
• Benchmark manipulation actions and regulatory progress
• The latest on transaction reporting
• An update on the European Market Abuse Regulation

To read our full briefing please click here.