HM Treasury has published its consultation response to the Wholesale Markets Review, setting out summaries of responses received to its proposals and how changes will be progressed. There are certain areas that HM Treasury will not progress at this stage, and which will be subject to further consideration.
For the proposals that are being taken forward, implementation may be by legislation or pursuant to the Financial Conduct Authority's rules. HM Treasury states that legislation will be brought forward when Parliamentary time allows. In certain instances, where details are currently set out in legislation, but would sit better in regulatory rules, the government intends to legislate to delegate responsibility to the FCA for preparing detailed rules, which it states will be part of the implementation of the Future Regulatory Framework review. The FCA is expected to consult on its proposals for existing rule amendments in the first half of this year.
HM Treasury confirms that, following the announcement of John Glen MP, Economic Secretary to the Treasury, on November 23, 2021, legislation will be brought forward when parliamentary time allows to:
The following changes will also be brought forward through legislation when parliamentary time allows:
HM Treasury has acknowledged feedback that some areas will require greater consideration due to their complexity before they can be implemented. The following proposals will be subject to enhanced investigation:
The following proposals will be implemented as part of the FRF review:
The following amendments will be implemented by changes to the FCA rules following consultation:
In addition, the FCA will provide clarification, following consultation, on the regulatory perimeter for trading venues, in particular MTFs, which will likely be in the form of regulatory guidance. The FCA will also develop guidance on the expected roles of market operators and participants during an outage, to further the aim of trading continuing during market outages.
[View source.]