The UK Financial Conduct Authority has placed securities linked to former US President Donald Trump under heightened surveillance following a surge of irregular trading activity. The move comes as regulators on both sides of the Atlantic examine whether privileged access to political intelligence enabled unlawful profits.
Sources within the FCA confirm that the watchdog is monitoring volatility in shares of Trump Media & Technology Group, the parent company of Truth Social, and other holdings disclosed in Trump’s financial filings. The investigation focuses on trades executed in the hours immediately before Trump’s public statements on merger deals, regulatory decisions and campaign finance.
“The pattern of trading suggests a systematic flow of non-public information,” said a senior FCA official who spoke on condition of anonymity because the probe is ongoing. “We are coordinating with the US Securities and Exchange Commission to establish whether UK-based entities or individuals were involved.”
The FCA’s intervention underscores the global reach of the controversy. While Trump himself is not subject to insider trading laws as a political figure, his associates and family members who trade on his behalf may be liable. The watchdog is particularly focused on transactions executed via London-based hedge funds and private banks that have historically serviced Trump-linked accounts.
US prosecutors are also examining the trades. The Southern District of New York has reportedly issued grand jury subpoenas to brokerages that handled large orders for Trump Media stock in the days before Trump announced a $300 million capital injection from a Middle Eastern sovereign wealth fund. The announcement caused the stock to surge 40 per cent in a single session.
Legal experts note that proving insider trading requires demonstrating that a trader possessed material, non-public information and used it to place bets. In Trump’s case, his daily intelligence briefings and access to classified material create a uniquely opaque information environment. “The difficulty is establishing what constitutes ‘material’ information when the source is a former president who routinely mixes public statements with private disclosures,” said Sarah Khan, a professor of securities law at the London School of Economics.
The FCA’s monitoring extends to options markets, where unusual volatility has been detected. The regulator has requested trading data from the London Stock Exchange and several electronic platforms. It has also contacted the Financial Industry Regulatory Authority in the US for cross-referencing of beneficial ownership.
Trump has denied any wrongdoing, calling the probe a “witch hunt” in a statement released through his political action committee. His son Eric Trump, who manages the family’s business interests, declined to comment through a spokesperson.
The investigation represents a significant test of the FCA’s post-Brexit enforcement capacity. Since leaving the EU, the UK regulator has sought to position itself as a credible deterrent against market abuse, but its resources are stretched. The agency has been criticised for slow action in previous high-profile cases involving politically exposed persons.
Market participants are watching closely. The revelation that the FCA is scrutinising Trump-linked trades has already caused a ripple effect, with several London-based funds imposing additional compliance checks on any holdings tied to US political figures. “The reputational risk is now too high to ignore,” said one fund manager who spoke on background.
The probe is unlikely to conclude before the 2024 US presidential election, raising the prospect of a drawn-out legal battle that could further polarise financial markets. For now, the FCA’s monitoring continues, with no immediate enforcement action anticipated.
