On 29 October the FSA published its latest issue of Market Watch. In this issue of Market Watch there were the following articles:
- Visits to hedge fund managers.
- Insider trading reviews by the FSA: the importance of timetables and insider lists.
- Non-market price transactions.
- Non-retail Transaction Enquiry Form.
- Transaction reporting rules.
- MiFID trade reporting.
The article 'Visits to hedge fund managers' sets out some of the good and poor practices that the FSA found during visits to hedge fund managers (HFMs) to assess the controls in place to mitigate the risk of market abuse. The article also states that in the coming months the FSA will be visiting more HFMs to formally assess their market abuse systems and controls. Generally due to the range in size and activities of the HFMs reviewed the FSA found that the level and type of market abuse systems and controls in place varied. In some HFMs the FSA was "disappointed" with what it found.
According to the FSA some of the areas of control that HFMs should consider to manage the risk of market abuse are:
- Compliance responsibility.
- Independent monitoring of market abuse controls and procedures.
- Training received by HFM staff.
- Restricted/stop lists and Chinese Walls.
- Dissemination of information/rumours.
- PA dealing procedures.
- Receipt of inside information from companies.
In the article 'Insider trading reviews by the FSA: the importance of timetables and insider lists' the FSA sets out some general pointers on the level of detail it expects to receive from firms when making preliminary enquiries for suspected cases of market abuse. The article also sets out some general information as to the quality of the timetable and insider lists that firms should provide and then sets out examples of both.
In the article 'Non-market price transactions' the FSA briefly comments on non-market price transactions in light of the whole of the Inter-Professional Conduct chapter of the FSA Handbook (MAR 3) being deleted with effect from 1 November 2007.
In the article 'Non-retail Transaction Enquiry Form' the FSA sets out some general comments as to how firms can apply for the new style Transaction Enquiry Form.
In the article 'Transaction reporting rules' the FSA refers to its proposals relating to transaction reporting that were set out in Consultation Paper 07/16: Consequential Handbook Amendments (CP07/16). The FSA states that it has modified its proposed amendment to 17.1.4R Supervision Manual but will defer implementing the revised provision until the second half of 2008. The FSA also confirms that it has amended its rules for the requirement to identify a systematic internaliser in the venue identification field and the CESR Level 3 Transaction Reporting Guidelines for branches as proposed in CP07/16.
In the article 'MiFID Trade Reporting' the FSA confirms that it strongly supports the CESR Level 3 Guidelines on publication and consolidation of MiFID market transparency data (Guideline No.2 and Recommendation No. 1).
View Market Watch - issue 24, (PDF 93.9KB), 29 October 2007