FCA publishes new Market Watch

The latest edition of Market Watch focuses on “flying prices” and “printing trades” – where firms communicate to clients that they have bids or offers that are not actually supported by an instruction and then communicate that a trade has taken place when it has not. This risks trading decisions being made based on misleading information. FCA says that firms have taken note of the MAR and MiFID 2 requirements and many make a clear distinction between prices that are supported by an order or bid and those that are indicative only. However, FCA thinks some practices may amount to criminal offences, market abuse and/or breach of Principles for unacceptable market conduct. It reminds firms of their duty to have in place appropriate systems and controls and reminds approved persons of their obligations to act with integrity and observe proper standards of market conduct and the additional duties on those in accountable higher management functions