iOn March 9, the Financial Conduct Authority (FCA) announced its first, post-Brexit annual transparency calculations for UK equity and equity-like financial instruments in response to the UK Markets in Financial Instruments Regulation (the Press Release). The calculations will be available from April 1.
The calculations will be available through the FCA’s Financial Instrument Transparency Reference System and will include:
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the liquidity assessment;
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the determination of the most relevant market in terms of liquidity;
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the determination of the average daily turnover relevant for the determination of the pre-trade and post-trade large in scale thresholds;
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the determination of the average value of the transactions and the related standard market size; and
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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 expects market participants to monitor daily the release of the transparency calculations for equity and equity-like instruments to obtain the calculations for newly traded instruments.
