Linear Investments Response to FCA Decision Notice

Following the recent FCA Decision Notice, Linear Investments have issued the following statement:

“Linear Investments has been authorised and regulated by the Financial Conduct Authority for over seven and half years. During that time the Firm has seen significant growth and evolution within the business model.

Several years ago, the Firm saw substantial growth within the execution services aspect of the business which was then executed and cleared through a large DMA provider. This provider carried out its own automated market surveillance monitoring in addition to Linear’s manual oversight process to ensure any anomalous trading activity would be captured.

Late in 2014 Linear learned that they could no longer rely on the DMA provider’s automated oversight system and as a result Linear began the process of implementing their own organic solution. Shortly after, Linear were contacted by the FCA and asked to provide an explanation of the market oversight system. Linear maintains that no instances of market abuse had either gone undetected or unreported but accepted that the manual oversight system Linear it had operated was insufficient for the volume of trading. They further accepted that they could not rely on the DMA provider’s automated system.

Linear voluntarily entered into a Focussed Resolution Agreement with the FCA concerning these matters that had occurred between 14 January 2013 and 9 August 2015.”