FSA has published its plans for regulating markets in the current climate of change. It identifies the following drivers for change:

  • growing internationalisation of markets;
  • the need for decisive response to the crisis;
  • growth of competition in trading and clearing;
  • technological developments;
  • the need to maintain or improve market quality; and
  • changes to the European regulatory structure.

In this context, FSA's priorities are to:

  • reform OTC derivatives markets to reduce systemic risk – this will include greater use of clearing and strengthening risk management of non-cleared trades;
  • increase use of trade repositories to ensure better transparency of OTC markets;
  • engage in the international move to global standards for clearing houses and how to deal with the "single point of failure" risk;
  • work towards getting the MiFID Review to make competition more consistent between trading venues, improve post-trade transparency data in equity markets and support transparency requirements for major non-equity markets (such as corporate bond, CDS, structured finance and other derivatives);
  • understand and mitigate the risks of evolving markets;
  • work towards a pan-European short selling disclosure regime;
  • carry on its policy of credible deterrence against insider dealing and market manipulation;
  • work with international regulators to meet the Pittsburgh remit for enhancing transparency in oil derivatives markets; and
  • work with the EU on implementing the CRA regime and working with ESMA. FSA believes national authorities should still play a major role in supervising CRAs.

FSA plans a paper later this year on wider issues.