Find out about the key changes under the Suspicious Transaction and Order Reports (STOR) regime and our expectations regarding the new regime.
New surveillance obligations are coming into force on 3 July 2016 for firms and trading venues. These arise from the implementation of the EU Market Abuse Regulation (MAR).
The STOR regime, which is outlined in Article 16 of MAR and the MAR Delegated Regulation contains a number of key differences compared to the existing Suspicious Transactions Reports (STR) regime under the Market Abuse Directive (MAD).
From 3 July 2016, various regulated firms and other persons – ‘notifiers’ – will be required to detect and report any suspicious behaviour or activity which is in scope of MAR. This includes instruments traded on a wider range of trading venues compared to MAD, and includes suspicious orders, as well as suspicious transactions.
Attempted manipulation and attempted insider dealing are also now in scope of MAR.
MAR also offers an indicative list of indicators of manipulation that notifiers must be mindful of in ensuring their systems and procedures are effective.
Trading venues must also have effective systems aimed at preventing market abuse.
Our preparations for the MAR STOR regime
In the Delegated Regulation, ESMA prescribes a notification template to be used by anyone notifying us of any suspicions. We are building a system which firms and trading venues will be required to use to report STORs to us.
Between February and March 2016 we conducted a series of STOR workshops that more than 300 organisations were invited to. At the workshops we provided an overview of the new STOR regime, our supervisory approach, and a demonstration of the new STOR form.
Any questions you have from 3 July 2016 about the new STOR form can be directed to our STOR helpline, which will be available soon.