On 1 February 2023, the European Commission published a Commission Delegated Regulation (EU) which amends the regulatory technical standards laid down in Delegated Regulation 2017/588 as regards the annual application date of the calculations of the average daily number of transactions for shares, depository receipts and exchange-traded funds for the purposes of the tick sizes.
Delegated Regulation (EU) 2017/5881 (RTS 11) sets out the tick size regime for shares, depository receipts and exchange-traded funds. A tick size is the minimum increment at which a price of a financial instrument can be changed. The Annex to RTS 11 contains the applicable tick size based on the average daily number of transactions (ADNT). Where currently the calculations of the ADNT apply as of 1 April each year, the amendment ensures that they apply the first Monday of April of each year instead. The amendment aims to align the application date of calculations in RTS 11 with the application date of the calculations in Delegated Regulation (EU) 2017/587 (RTS 1).
The Delegated Regulation enters into force on the twentieth day following its publication in the Official Journal of the European Union.