The Financial Services Authority (FSA) gave firms some assistance in understanding their market abuse suspicious transaction reporting obligations.

The requirement to report transactions suspected of constituting market abuse to the FSA is one of the major obligations introduced by the European Union’s Market Abuse Directive in July, 2005. The FSA implemented this requirement by rules to be found at SUP 15.10 of its rule book.

In deciding what transactions to report, the key test is whether there are reasonable grounds for suspecting the transaction involves market abuse. The Market Watch examples clarify the FSA’s view of when there are reasonable grounds for a regulated firm to suspect market abuse.

http://www.fsa.gov.uk/pubs/newsletters/mw_newsletter19.pdf