In Regulatory Wrap for the week to February 23, Rob Mason breaks down the FCA's Market Watch 76, which covers "flying" and "printing" as continuing risks in the industry.
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In this Regulatory Wrap, we cover the Financial Conduct Authority’s (FCA) Market Watch 76 newsletter and examine its comments on the continued occurrence of “flying” and “printing,” and how firms should tailor surveillance policies to identify and prevent these activities.
1. Flying and printing both refer to when a firm dishonestly communicates information about trades to clients or market participants
2. Flying is when a firm states that it has bids or offers that aren’t completely authentic, while printing is when firms falsely claim that they have executed trades that did not occur on their particular venue
3. Despite warnings, the regulator has continued to see occurrences of these activities within the industry and is urging firms to tailor their communications surveillance processes to detect instances
4. Firms should surveil for specific language or phrases in communications that indicate a broker is reaching out to external colleagues for assistance after being caught engaging in misconduct
5. As this issue is projected to persist, ensure that your surveillance system has flagging processes in place to detect flying and printing
This Regulatory Wrap is brought to you by Global Relay’s Director of Regulatory Intelligence, Rob Mason.
Global Relay’s surveillance tools assist with communications monitoring and can help detect and prevent instances of flying and printing.
