FCA Accepts Commitments in Commodity Futures Competition Case

The Financial Conduct Authority said it issued its Decision to Accept Commitments on September 18 following an investigation into concerns involving 11 day traders in global commodity futures markets. The FCA was concerned that the traders may have exchanged commercially sensitive information about trading or coordinated trading strategies in a way that could restrict competition.

Under the commitments, the traders will change how they handle sensitive information, complete annual competition-law training and arrange a £1 million ex gratia payment to the Crisis and Resilience Fund. The FCA said consultation feedback led only to minor drafting changes.

The regulator stressed that it has not reached a view on whether competition law was breached. It also said the commitments do not amount to an admission of infringement by the individuals. The case focused on independent decision-making in commodity futures, where day traders can contribute liquidity and absorb risk from other market participants.

Why it matters

For commodity-futures traders, the case underlines that communications around strategies, positions and trading intentions can create competition-law risk. Market liquidity depends on participants making their own decisions, not aligning conduct through informal information sharing.

What to watch next

Watch for any FCA follow-up on compliance with the commitments and for future competition enforcement in wholesale markets. Trading firms may also review their information-barrier, chat-monitoring and competition-law training controls in response.