Treasury publishes response to Wholesale Markets Review consultation

HM Treasury has published the response to the Wholesale Markets Review consultation, setting out the feedback received and outlining how the government plans to take forward the various proposals.

A full breakdown of how the government intends to deliver each proposal is set out in Chapter 10 of the response document. The changes include:

  • clarifying the regulator perimeter in respect of trading venues;
  • developing a playbook for market operators and participants to follow when there is a market outage;
  • removing the share trading obligation and the double volume cap;
  • delegating the pre- and post-trade transparency regime for fixed income and derivatives markets to the FCA; and
  • reducing the scope of the position limits regime for commodity derivatives.

The government believes that a number of the changes proposed will be best delivered following the implementation of the Future Regulatory Framework (FRF) Review.

Lucy Hadrill