GC14/9 Multilateral Trading Facilities (MTFs) - Dear CEO Letter and FCA Good Practice Observations on MTF Rulebooks

This proposed guidance relates to the Market Conduct Rules for Multilateral Trading Facilities (MTFs) - MAR 5.

This guidance is likely to be of most relevance to authorised firms operating Multilateral Trading Facilities (MTFs).

Guidance Consultation 14/9 [PDF]

Background to this consultation

The FCA has undertaken a thematic review of MTF operators' rulebooks.  A sample of UK MTF operators responded to a questionnaire which sought to assess compliance with those areas of the FCA's Handbook relating to an MTF operator's rules.  

Following our thematic review, a Dear CEO Letter and FCA Good Practice Observations provide guidance on MAR 5 requirements relating to MTF rulebooks.

The FCA expects all MTF operators to be able to demonstrate that they have considered the Good Practice Observations when determining their approach to compliance with MAR 5.

Summary of the key issues

The proposed guidance sets out the key MAR 5 requirements and the FCA’s Good Practice Observations relating to MTF operator rulebooks.

In particular MAR 5.3.1 (Trading Process Requirements) requires that "a firm operating an MTF must have transparent and non-discretionary rules and procedures for fair and orderly trading."

The FCA expects that an MTF operator will have a rulebook in place and the rulebook will be publicly available on the MTF operator’s website.

We invite your views

Do you have any comments on the proposed guidance?

Do you agree with the proposed guidance?

And/ or, if relevant, any specific questions?

Please respond by 16 January 2015 (7 weeks).

Please send your responses by email  to [email protected].

Please also copy in: [email protected] and [email protected].

Alternatively, please send your responses by post or telephone us:

Kirstie Boardwell / Roger Pordes
MTF Supervision
Market Infrastructure & Policy
Markets Division
The Financial Conduct Authority
25 The North Colonnade
London E14 5HS

Telephone: Kirstie Boardwell (020 7066 7884), Roger Pordes (020 7066 9154)