UK markets to stay open despite coronavirus crash, says FCA
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The UK’s finance watchdog has said it wants to keep stock markets open despite the dramatic sell-offs of recent weeks and record volatility over the coronavirus outbreak.
The Financial Conduct Authority (FCA) said in a statement: “Our aim is to continue to maintain open and orderly markets notwithstanding current volatility.”
Yesterday, the US’s watchdog said it wanted Wall Street to stay open despite plunging stock markets driven by coronavirus. US stocks yesterday suffered their worst day since 1987’s infamous Black Monday crash.
The FCA said it would “take any steps necessary” to support the markets and customers during this period of economic turmoil.
However, the watchdog said firms must still follow regulations such as recording trades and calls, which lets the FCA spot rule-breaking.
“Firms should make us aware if they are unable to meet these requirements,” the FCA said. “We expect firms to consider what steps they could take to mitigate outstanding risks if they are unable to comply with their obligations to record voice communications.”
Market traders could retrospectively review their operations or enhance monitoring once normal trading resumes, it said.
The FCA’s statement is a response to some who had suggested markets should be closed to prevent panic-selling and a further crash. The UK’s FTSE 100 has fallen more than 30 per cent since its recent highs.
Similar calls had been growing in the US. But Securities and Exchange Commission chair Jay Clayton told CNBC yesterday that markets should stay open.
“Things have been functioning well in our markets over the past two weeks of a very volatile time,” he said.