The FCA’s latest Suspicious Transaction and Order Reports (STOR) data reveals a sharp uptick in organised crime links and underreporting, especially in fixed income and derivatives.
This isn’t just a regulatory update; it’s a wake-up call. Firms are expected to be proactive, not passive, in protecting market integrity. The regulator’s tone is shifting, and firms that don’t adapt risk falling behind.
What Happened and Why Clients Should Care
The FCA’s 2024 STOR report highlights that 25% of STORs are now linked to organised crime, and over 70% of market abuse investigations originate from STORs. Yet, underreporting persists, particularly in asset classes like fixed income and foreign exchange.
The regulator is doubling down on expectations, emphasising that:
- Surveillance must be robust and multi-layered.
- Escalation pathways need to be clearly documented.
- Firms must act as the first line of defense, not just data conduits.
This shift is about compliance and credibility. Investors and regulators alike are watching how firms respond.
Strengthen Your STOR Strategy Today
To meet FCA expectations, firms should:
- Deploy surveillance tech that flags suspicious activity across trade and communications.
- Establish clear escalation protocols and document near misses.
- Train front office and compliance teams on triggers and reporting standards.
- Audit your STOR process to ensure it’s defensible and aligned with current enforcement trends.
These steps are foundational, and firms that wait for enforcement to knock at their doors are already behind. These steps are easier to implement with the right support, especially when navigating complex surveillance workflows and regulatory expectations.
Want to see how your firm stacks up against FCA expectations? Download our insights for a breakdown of STOR trends, asset class insights, and the five FCA priorities shaping enforcement in 2025.
ACA Strengthens Market Integrity
ACA helps firms align with FCA expectations through a combination of technology, advisory, and managed services:
- Market abuse risk framework: Identify gaps across areas like information barriers, private credit, and cross-asset activity, and strengthen your control environment.
- Surveillance technology: Monitor trade and communications with ComplianceAlpha® to support detection, escalation, and defensible documentation.
- Transaction reporting assurance: Ensure consistency between surveillance and reporting through ACA’s Regulatory Reporting Monitoring and Assurance (ARRMA) service.
- Training and governance: Build a culture of accountability with SM&CR-focused guidance and escalation training.
- Health checks and mock audits: Test your STOR process and documentation before the regulator does.
Contact us today to book a market abuse detection and prevention strategy session.