Home FCA Handbook SSR SSR 5 SSR 5.10 Organisational considerations for a person using the market maker exemption
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SSR 5.10 Organisational considerations for a person using the market maker exemption

13/07/2026G
  1. (1) Where the market maker exemption applies to a person in respect of the market making activities notified to the FCA, the FCA expects that person to put in place the following arrangements to demonstrate effective application of the market maker exemption and to ensure they are able to meet their obligations under SSR in relation to their short selling activities not covered by the exemption – in particular, position reporting and covering requirements:
    1. (a) comply with the general rules and particular requirements for market making activities imposed by the trading venue or an equivalent trading venue overseas designated under Part 3 of the Short Selling Regulations 2025, where applicable;
    2. (b) implement internal procedures with respect to the market making activities for which it claims the market maker exemption that allow these activities to be immediately identified and the records made readily available to the FCA upon request;
    3. (c) maintain records of orders and transactions relating to its market making activities for which it requests the market maker exemption so that they can be easily distinguished from its proprietary trading activities; and
    4. (d) possess effective compliance and audit resources and a framework to enable it to monitor the market making activities for which it requests the market maker exemption.
  2. (2) If a person is not able to demonstrate that it has put in place the arrangements described in (1), the FCA may not be satisfied that the person is able to meet the conditions of the market maker exemption – in particular, that the person concerned is able, operationally, to separate the market making activities (including the particular financial instruments) in respect of which the market maker exemption applies from its short selling activities to which the exemption does not apply.
  3. (3) The FCA would expect a person using the market maker exemption to maintain adequate records to be able to demonstrate correct application of the exemption for a period of up to 5 years.