The UK’s Financial Conduct Authority (FCA) has released the annual transparency calculations for UK equity and equity-like financial instruments, which will take effect on April 1 2021.
It published the calculation as part of the requirement from the UK Markets in Financial Instruments Regulation (MIFIR). These calculations are available through its Financial Instrument Transparency Reference System.
The calculations include the liquidity assessment, the determination of the most relevant market in terms of liquidity and the determination of the average daily turnover relevant for the determination of the pre-trade and post-trade large in scale thresholds.
It also covers the determination of the average value of the transactions and the related the standard market size and the determination of the average daily number of transactions on the most relevant market in terms of liquidity relevant for the determination of the tick-size regime.
The FCA based its calculations on 497 shares and 341 equity-like instruments.
Late last year, the regulator stated its would regard shares of EU issuers who have not sought admission to trading in the UK as illiquid and subject to pre-trade and post-trade LIS thresholds associated to having an ADT of under 50,000.
Copyright © 2021 FinTech Global
