The FCA emphasises the importance of Transaction Reporting
FCA market monitoring:
"During this period, we will be monitoring both primary market and associated secondary market activities to identify behaviours which may impact the integrity and orderly functioning of the market. We will use our full range of tools to do so, including transaction reporting, order book reporting, inside information disclosures, price movement monitoring, and reporting on net short positions."
The FCA takes the opportunity to remind firms of the importance of Transaction Reporting
FCA published Market Watch 63 last week, and in it FCA details its views on market conduct in the context of Covid-19. The newsletter focuses on market abuse, however, FCA also took the opportunity to remind firms of the importance to it of transaction reports and their role in investigating market abuse.
In order to rely on transaction reports to carry out these investigations FCA will in turn be relying on firms to ensure that the data within them is complete and accurate. And although not explicitly stated in the Market Watch FCA expects firms to have controls in place, as detailed in Article 15 of RTS 22, and a firm should be able to demonstrate regular testing and reconciliation to comply with this obligation.
UnaVista’s ARM already incorporates 350+ validation tests to assist firms with their accuracy obligations, a Reconciliation service to tie back a firm’s data to records at FCA and will be releasing UnaVista Analytics - Data Accuracy service to assist firms with testing.