Personal account dealing

Definition

inappropriately using personal dealing accounts, including spread betting

Context

Individual may trade on their personal accounts following receipt of insider information or confidential information to front run orders.

Surveillance

Effective implementation of surveillance alerts for personal account dealing requires capturing the following trade data:

  • client order data

  • communications data

  • personal account trade data

Firms should capture employee personal account trading records and use them in detection of inappropriate trading. Since it is impossible to ensure that employees disclose all private accounts, surveillance of communication channels is required to capture attempts and passing orders to or accessing undisclosed private dealing platform.

Risk taxonomy

Parent risks

Regulatory source

FCA FX market wide remediation programme