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.