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'Trading communication between market participants should be on a venue'

On the 9th October the FCAs view on when trading communication between market participants should be on a venue is changing.

Under PS23/11 “Guidance on the trading venue perimeter” the FCA are looking to generally tighten up when a communication between two market participants, is in fact a venue required interaction.

In the case of a Request for Quote (RFQ) platform this centres around whether at “point of entry” the system was capable of the multilateral communication of trading information regardless of whether only a bilateral negotiation took place.

Specifically, “A system can be considered multilateral when at the point of entry to the system, an order interacts, or has the potential to interact, with the trading interest of multiple other participants.”

With such a tight deadline for compliance we will be monitoring how the market begins to digest all of these proposed changes.

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October 10, 2023

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