Rise in FCA Suspicious Transaction and Order Reports

A record 3,730 suspicious transaction and order reports (“STORs”) of suspected insider dealing and market manipulation have been submitted to the FCA in the first 9 months of this year*, 24% more than in all of 2016 (3,008).

Banks, brokers and regulated firms have to report suspected insider dealing and market manipulation, like those that occur in Libor and Forex scandals, to the FCA.

The steep rise in STORs could be partly driven by firms now having to report attempts at market manipulation or insider dealing that does not result in a completed transaction. This might include an order for shares that is not completed or is cancelled.

These additional reporting requirements come as a result of the Market Abuse Regulation which was introduced in July 2016.

Whilst it is relatively simple for larger financial services firms to keep a close eye on suspicious activity, smaller companies may struggle to allocate the necessary resource and time to monitor for that kind of activity.

Reports of suspected insider dealing and market manipulation have risen by 24% in the first nine months of 2017 compared to the whole of 2016

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*As of October 2, 2017

Our Managing Director, Emma Cleveland, has been featured in the Financial Times here with her views on the rise in STORs.

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