On 14 March 2019, the FCA issued a supervisory statement on the operation of the MiFID II transparency regime post-Brexit.

Essentially, the supervisory statement sets out how the FCA will operate the pre- and post-trade transparency regime for the secondary trading of financial instruments if the UK exits the EU without a deal. The statement also takes account of the statement that the European Securities and Markets Authority (ESMA) issued on 5 February 2019: Use of UK data in ESMA databases and performance of MiFID II calculations in case of a no-deal Brexit. It also builds on the FCA’s statements of policy of 4 March 2019 which concerned how the FCA will use its temporary powers for the MiFID II transparency regime that are set out in the onshored MiFIR.

The supervisory statement considers the following:

  • FIRDS, FITRS, investment firms register, trading venues register, and systematic internalisers register;
  • concept of traded on a trading venue;
  • submission of transparency data to the FCA;
  • double volume cap;
  • transparency waivers and deferrals;
  • equity transparency and non-equity transparency;
  • systematic internalisers;
  • territorial scope of trade reporting;
  • trade reporting and the temporary permission regime;
  • trade reporting and the temporary transitional power; and
  • tick sizes.