SSR 5.8 Arrangements for the prohibition of market maker exemptions: rejecting notifications or otherwise

The FCA may decide to prohibit the use of the market maker exemption if it is not satisfied that the person using or intending to use the market maker exemption satisfies the conditions in SSR 5.4.1R. 

In deciding whether to prohibit the use of the market maker exemption, the FCA will consider whether the person concerned has adequately responded to information requests under SSR 5.11.1R.

The FCA may use the power in SSR 5.8.1R at any time – including, for example:

The FCA may take into account the organisational expectations set out in SSR 5.10.1G when satisfying itself that a person is capable of meeting the conditions of the market maker exemption.

In satisfying itself that the short selling activity for which the market maker exemption is claimed constitutes market making activity within the scope of the exemption, the FCA may have regard to the guidance on market making activities under SSR 5.13 to SSR 5.19.

When a prohibition decision under SSR 5.8.1R is issued to a person, the market maker exemption will cease to apply with respect to that person on the date specified in the notice decision.

If a person is prohibited from using the market maker exemption, a new notification under SSR 5.5.1R would be required to use it subsequently, as set out in SSR 5.5.1R(2)(b)(ii).