United Kingdom : Financial Sector Assessment Program-Fund Management and Equity Trading Platforms: Regulation, Supervision, and Systemic Risk Monitoring-Technical Note

The size and interconnectedness of the U.K. investment management sector and equity markets pose a significant challenge to the U.K. authorities. More than half of the investment funds managed by U.K. fund managers are domiciled abroad. The proportion is even larger in the case of alternative investment funds (AIFs). U.K. equity trading platforms dominate European equity trading, covering almost half of the total value of on-platform trading. This interconnectedness creates a potential for inward and outward spillovers, and dealing with them requires effective domestic supervision and systemic risk monitoring, supported by international cooperation.