The latest edition of Market Watch looks at:

  • an update on FSA's work on unauthorised trading: firms have reported areas that need or needed more attention. These include having, and enforcing, mandatory holiday, controls over IT access and cancel and corrects and late trades. Firms are also looking at how long it takes them to identify abnormal trading; 
  • how FSA has followed up market abuse controls with hedge fund managers: it found several examples of good practice, including on senior management responsibility and culture. Many firms have made efforts to keep compliance independent of the firm's executive function. FSA was pleased at how firms were trying to control how they handle inside information, but is worried about some specific aspects of controls, monitoring of trading and training. It also found more firms could have clearer PA dealing policies; 
  • Alternative Instrument Identifiers: FSA has completed its reporting specification and issued it to all ARMs; and 
  • changes to transaction reporting requirements: FSA has proposed some changes to reporting transactions in OTC derivatives.