Darling Proposes Giving FSA More Powers to Suspend OTC Trades
Chancellor of the Exchequer Alistair Darling is considering plans to allow the U.K. financial regulator to speed up how it announces the suspension of trading in over the counter securities.
The Financial Services Authority will be given the power to suspend trades and make them public via the Regulatory Information Service under plans proposed by the Treasury today in London. Currently the FSA informs institutions directly in writing.
“The proposed new procedure would also allow the FSA to require a specified class of institutions to suspend or remove a financial instrument from trading without having to identify each institution individually,” the Treasury said in a document published in London today.
Under the plans, the FSA would suspend trading to protect the functioning of the market or the interests of investors and whether it should be suspended across the entire market. The Treasury is seeking views from banks and other firms trading securities by Oct. 23.