FCA to introduce designated reporting regime
The FCA has published a policy statement on equity secondary markets as part of the UK wholesale markets review. This includes the introduction of a designated reporting regime which will remove the systematic internalizer (SI) status as a criterion for establishing when an investment firm is required to fulfill transparency reporting to the market. Under the new regime, firms can elect to register themselves as a designated reporter (DR) regardless of their SI status. Registration will apply at the entity level, meaning that DR status would apply to all reportable trades across all financial instruments. In the case where neither counterparty is a DR then the seller will report. The DR regime will go live in April 2024, representing a 12-month implementation period to provide firms with sufficient time to make the necessary changes.
The policy statement also confirms that a task force will be established to develop guidance and good practice for trading venue outages. Other notable policy announcements include changes to the content of post-trade transparency, the use of reference prices from overseas venues for UK trading venues, and removal of the size thresholds for orders benefiting from the order management facility (OMF) waiver. These amendments to post-trade transparency requirements will come into force in April 2024 alongside the designated reporting regime, and all other changes apply immediately.
Bloomberg
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