Home FCA Handbook REC REC 3 REC 3.25 Significant breaches of rules and disorderly trading conditions
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REC 3.25 Significant breaches of rules and disorderly trading conditions

30/04/2021R

A UK RIE and a RAP must immediately notify the FCA of:

  1. (1)

    significant breaches of its rules; or

  2. (2)

    disorderly trading conditions on any of its marketsor auctions; or

  3. (3)

    conduct that may indicate behaviour prohibited under the Market Abuse Regulation; or

  4. (4)

    system disruptions in relation to a financial instrument.

[Note:article 31(2), first sentence (part) andarticle 54(2), first sentence (part) of MiFID. The rest of article 31(2), first sentence (in so far as it relates to market operators operating an MTF or OTF) and article 54(2), first sentence of MiFID is implemented by REC 3.21.1 R (2)]

23/10/2025R

When assessing whether the requirement to inform the FCA immediately of significant infringements of the rules of its trading venue or disorderly trading conditions or system disruptions in relation to a financial instrument applies, a UK RIE must consider the signals listed in MAR 1 Annex 3R 1.

23/10/2025R

  1. (1)

     When assessing whether the requirement to immediately inform the FCA of conduct that may indicate behaviour that is prohibited under the Market Abuse Regulation applies, a UK RIE must consider the signals listed in MAR 1 Annex 3R 2.

  2. (2)

     A UK RIE operating one or several trading venues where afinancial instrument and/or related financial instrument are traded must apply a proportionate approach and exercise judgement on the signals triggered, including any relevant signals not specifically included in MAR 1 Annex 3R 2, before informing the FCA, taking into account the following:

    1. (a)

       the deviations from the usual trading pattern of the financial instruments admitted to trading or traded on its trading venue; and

    2. (b)

       the information available or accessible to the UK RIE, whether that be internally as part of the operations of the trading venue or publicly available.

  3. (3)

    (a)

     A UK RIE operating one or several trading venues must also take into account front running behaviours, which consist in a market member or participant trading, for its own account, ahead of its client.

    1. (b)

       For the purposes of (a), a UK RIE must use the order book data required to be recorded by the trading venue pursuant to Article 25 of MiFIR(Obligation to maintain records) – in particular, those relating to the way the member or participant conducts its trading activity.

23/10/2025G

(1) For the purposes of the signals referred to in MAR 1 Annex 3 references to ‘order to trade’ should encompass all types of orders, including initial orders, modifications, updates and cancellations of orders, irrespective of whether or not they have been executed and irrespective of the means used to access the trading venue.

(2) The list of signals of insider dealing and market manipulation is neither exhaustive nor determinative of market abuse or attempts of market abuse, as each of the signals may not necessarily constitute market abuse or attempts of market abuse per se. Transactions or orders to trade meeting one or more signals may be conducted for legitimate reasons or in compliance with the rules of the trading venue.