FSA Handbook Supervision Manual (SUP17) requires firms entering into reportable transactions to send us reports containing mandatory details for those transactions by the end of the following business day. At the end of each working day, transaction reports received from firms are loaded in to our transaction monitoring system, SABRE II. This is used by us and external parties for the following purposes.
Monitoring for market abuse and market manipulation
The main thing we use transaction reports for is to detect and investigatesuspected market abuse (insider trading and market manipulation) in support of our statutory objectives of maintaining confidence in financial markets andreducing financial crime. SABRE II users in the Transaction Monitoring Unit (TMU) and the Market Conduct teams may, for example, use the data to view all transactions executed by a given firm, in a given stock, over a given period or to view all transactions in a given stock, for a given client, over a given period, etc. When we receive an allegation of market abuse or we identify an issue that needs to be followed up, interrogation of transaction reports in SABRE II is a key part of our work.We need to identify the transactions in question and establish their nature, timing and parties involved. So, the transaction reports are a key piece of the jigsaw in enabling us to determine whether there is a case of market abuse that warrants enforcement action by 6 Transaction Reporting User Pack (TRUP) us. Similarly, transaction reports are very important as evidence when we (or other authorities) are bringing market abuse cases: they provide an audit trail of the complete transaction.
Firm supervision
Firm supervisors may view firms’ transaction reports to help identify and investigate potential breaches of various Conduct of Business rules, etc.
Firm supervisors may view firms’ transaction reports to help identify and investigate potential breaches of various Conduct of Business rules, etc.
Market Supervision
We undertake market surveillance to alert us to potential new risks to market confidence that may arise from significant market developments. Transaction reports provide us with useful market information that can help with such surveillance, e.g. statistics showing rate of growth in the use of certain instruments.
We undertake market surveillance to alert us to potential new risks to market confidence that may arise from significant market developments. Transaction reports provide us with useful market information that can help with such surveillance, e.g. statistics showing rate of growth in the use of certain instruments.
Exchange with other EEA competent authorities
MiFID requires us to exchange certain transaction reports with other EEA competent authorities through the Transaction Reporting Exchange Mechanism (TREM) of the Committee of European Securities Regulators (CESR).We send transaction reports from branches of non-UK EEA firms to their respective home competent authority and we send them to the most relevant competent authority when that is not us.
MiFID requires us to exchange certain transaction reports with other EEA competent authorities through the Transaction Reporting Exchange Mechanism (TREM) of the Committee of European Securities Regulators (CESR).We send transaction reports from branches of non-UK EEA firms to their respective home competent authority and we send them to the most relevant competent authority when that is not us.
Other Authorities
Transaction reports are used by certain external parties, including the Bank of England and the Takeover Panel.
Transaction reports are used by certain external parties, including the Bank of England and the Takeover Panel.
