May 18, 2021

Volume XI, Number 138


May 17, 2021

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FCA Updates Webpage on Operation of UK MiFIR Transparency Regime

On February 2, the UK Financial Conduct Authority (FCA) updated its webpage on its supervisory statement on the operation of the transparency regime under the retained EU law version of the Markets in Financial Instruments Regulation (UK MiFIR) following the United Kingdom’s departure from the European Union (the Webpage).

In the Webpage, the FCA explains that UK firms will soon be capable of meeting their obligations under the share trading obligation on Swiss exchanges, and UK trading venues will be able to offer trading in Swiss shares. The FCA confirms how aspects of UK markets regulation will apply to Swiss shares that resume trading on UK trading venues.

The FCA advises that Swiss shares that resume trading on UK trading venues will be treated as if they are trading for the first time on a UK trading venue to calibrate the pre- and post-trade transparency regime. An estimate will be made of the relevant parameters based on the characteristics of the shares to apply from their first day of trading. These estimates will then be updated after six weeks based on data from the first four weeks of trading in the United Kingdom.

A similar approach will be applied for tick sizes, with an initial estimate updated after six weeks by a calculation based on data for the first four weeks of trading in the United Kingdom. These figures may result in different tick sizes than the ticks currently implemented for trading of these instruments on exchanges in Switzerland. UK trading venues will be authorized to use the minimum tick size that applies in Switzerland where that is smaller than the minimum tick size based on the figures for the average daily number of transactions that the FCA publishes through its Financial Instruments Transparency System.

The Webpage replaces similar statements made by the FCA in March and October 2019. The FCA advises that the current approach may be revised as market conditions develop.

The Webpage.

©2021 Katten Muchin Rosenman LLPNational Law Review, Volume XI, Number 36



About this Author

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...

+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...