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ESMA Publishes Annual Transparency Calculations

On February 28, the European Securities and Markets Authority (ESMA) published the annual transparency calculations for equity and equity-like instruments. This information is published for the purposes of the MiFID II/MiFIR transparency requirements, in particular:

  • pre-trade transparency requirements for all market participants are waived for transactions whose size is above large-in-scale (LIS) thresholds;

  • systematic internalisers (SIs) have pre-trade transparency obligations for instruments traded on a trading venue, which are waived if the instrument is illiquid; and

  • SIs have pre-trade transparency obligations, which are waived when dealing with orders over the standard market size (SMS).

The LIS thresholds and the determination of liquidity and the SMS are calculated using these annual transparency calculations. Technically, the national competent authorities of the EU member state in which the relevant MiFID firm is based should make these calculations; however, all EU member states apart from Poland have delegated this obligation to ESMA.

Currently, there are 1,493 liquid shares and 788 liquid equity-like instruments other than shares, which are subject to MiFID II/MiFIR transparency requirements. The full list of assessed equity and equity-like instruments is published on ESMA’s Financial Instruments Transparency System (FITRS), available here. The full list for instruments available for trading before January 3, 2018, through separately maintained registers for equity and non-equity instruments, is available here and here respectively.

These calculations are applicable starting April 1, and until then the 2019 annual transparency calculations continue to apply. For more information, please see the March 8, 2019 edition and June 28, 2019 edition of Corporate & Financial Weekly Digest.

ESMA’s press release is available here.

©2020 Katten Muchin Rosenman LLPNational Law Review, Volume X, Number 66


About this Author

John Ahern, Financial Attorney, London, Katten Law Firm

John Ahern, partner at Katten Muchin Rosenman UK LLP and head of the London Financial Services group, focuses his practice on banking, financial services, UK and European financial markets, and related regulations. His background in private practice and as in-house counsel at a global investment bank provides him with perspective on the unique regulatory issues facing the wholesale and private banking sectors. John advises multilateral trading facilities, broker-dealers and banks on trading, clearing and settlement as well as custody of securities—both physical and...

+44 (0) 20 7770 5253
Carolyn H. Jackson, International Attorney, Katten Muchin law firm

Carolyn Jackson is a partner in Katten Muchin Rosenman UK LLP and is a Registered Foreign Lawyer. She provides US financial regulatory legal advice to a broad range of market participants, including commercial banks, investment banks, investment managers, broker-dealers, electronic trading platforms, clearinghouses, trade associations and over-the-counter derivatives service providers.

Carolyn guides clients in the structuring and offering of complex securities, commodities and derivatives transactions and in complying with US securities and commodities laws and regulations. 

+44 0 20 7776 7625
Nathaniel Lalone, Katten Muchin Law Firm, Financial Institutions Attorney
Senior Associate

Nathaniel Lalone, a partner at Katten Muchin Rosenman UK LLP, has a broad range of experience in the regulation of financial products and financial markets, and frequently provides regulatory and compliance advice to trading venues, clearing houses and buy-side firms active in the over-the-counter (OTC) derivatives, futures and securities markets. He is actively involved in advising clients on the implementation of MiFID 2 and MiFIR in the European Union as well as the international reach of US financial services regulation. He also has significant experience with structuring...

+44 0 20 7776 7629
Neil Robson, private equity fund managers counselor, Katten Law Firm, London

Neil Robson, a regulatory and compliance partner with Katten Muchin Rosenman LLP, focuses his practice on counseling hedge and private equity fund managers and other investment advisers on operational, regulatory and compliance issues. He regularly addresses Financial Conduct Authority (FCA) and EU authorization and compliance under both the EU Alternative Investment Fund Managers Directive (AIFM Directive) and MiFID, cross-border issues in the financial services sector, market abuse, anti-money laundering and regulatory capital requirements, formations and buyouts of...