On 25 June 2018, the FCA published a new web page concerning periodic auctions. The FCA explains on the web page what periodic auctions are and their interaction with MiFID II.

The FCA concludes on the web page that:

  • periodic auctions are currently far from being a major feature of the overall equity trading landscape;
  • the data the FCA has reviewed does not support the hypothesis that the growth of periodic auctions has been driven solely by the introduction of the double volume cap mechanism; and
  • periodic auction systems currently encompass a range of different methodologies and functionalities and co-exist with a variety of other bilateral and multilateral execution channels. The FCA is therefore carrying out further analysis of the equity trading landscape as a whole, including the design, calibration and use of periodic auctions within it, to understand the market outcomes this is generating and how these align with the policy intentions of MiFID II and the FCA objectives in terms of impact on fair and orderly trading and market transparency. The FCA will publish further analysis of these issues, as appropriate, in light of this work.