Learning outcomes

This Market Conduct course explains the main types of market manipulation that can occur in the securities markets and helps employees understand their responsibilities regarding prohibited market behaviour.

Who is the course for?

Participants who want to learn more about the market manipulation that can occur in the securities markets and develop an understanding regarding their responsibilities regarding prohibited market behaviour.

Course Content

Introduction to Securities Market Conduct Risk (SMCR)

• Understanding SMCR
• Wholesale Markets– Complexity & Interconnectivity
• Supervision & Supervisors – Central Bank interactions
• The Five Principles of an effectively regulated securities market
• Implications and Obligations

Global Regulatory Impact

• MiFID (I & II), Market Abuse Regime, CRR / CRD IV, EMIR, CSDR, and others.
• Understanding the rationale and the impact on market participants
• Market Classifications – RMs, MTFs & OTFs

Case-Study #1 – Market Abuse

SMCR Framework

• Identification of SMCR and ensuring your staff understand
• Recognising the conduct risks involved in your business and the indicative signs
• Development and controls
• Identify suspicious transactions and orders
• Reporting – Suspicious Transaction and Orders Report (STOR)
• Mitigation – Regulatory horizon scanning

Culture and People

• Culture, Conduct and the Client – The 3 C’s of Conduct risk
• Business Ethics – Individual and Organisational
• Cultural issues, Ethical dilemmas and past failures in Financial Services
• Ensuring staff understanding of MCR

Case-Study #2 – Conduct Risk

Governance of Market Conduct Risk

• Owning the process
• Management Information
• Leadership and challenge
• Fitness and probity
• Local and Branch Coverage

Case-Study #3 – Governance

Organisational Structure

• Minimising risk of poor conduct
• Operational transparency
• Communication

Market Abuse Risk

• Trade surveillance obligations
• Prevention, detection and reporting
• Outsource risk
• Managing inside information

Client and Investor Interaction

• Behavioural and Cultural obligations
• Protecting the investors – Pricing, transacting, processing and servicing
• Investor Relations – Communications and data

Case-Study #4 – Clients & Investors

Future Development

• Understanding your role in SMCR
• Regulatory interactions – Inspections and Enforcements
• Responsibility and Accountability

Trainer Profile