In an address before the Association for Financial Markets in Europe conference on Implementation of the Market Abuse Regulation in the U.K., Julia Hoggett, Director of Market Oversight at the Financial Conduct Authority, emphasized prevention over detection, saying, “When it comes to mitigating the risk of market abuse… we are not seeking to be in the business of closing the stable door after the horse has bolted.” Hoggett focused on the first three of the FCA’s 5 Conduct Questions approach: (1) Identifying market abuse risks, particularly the risk of information leaking outside of a firm; (2) ensuring that individuals within institutions understand their responsibilities — and the consequences of failing to meet those responsibilities; and (3) enhancing information systems and controls, and improving surveillance methods to detect market manipulation across markets but particularly in relation to fixed income, FX and commodities. Looking at future risks and oversight possibilities, Hoggett encouraged implementation of the appropriate standards for market control, and adapting to evolving risks. She concluded her speech with a warning about maintaining robust controls in the context of Brexit, and managing Artificial Intelligence responsibly.
February 13, 2019
FCA official delivers speech on implementation of the Market Abuse Regulation
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