FCA warns trading venues regarding submission of data for spot FX
The UK Financial Conduct Authority (FCA) today posted the latest edition of Market Watch.
The regulator notes that it has identified trading venues submitting instrument reference data for spot FX instruments.
Spot FX is not a financial instrument under the UK MiFID framework. The submission of reference data for spot FX instruments can therefore mislead investment firms as to the scope of their reporting obligations. This includes where they are traded as part of a complex trade or strategy.
The regulator warns that trading venues should ensure reference data is not submitted to the FCA for instruments that are not MiFID financial instruments.