On 4 March 2019, the FCA published Statements of Policy on the operation of the MiFIR transparency regime, if the UK leaves the EU without a deal.
The FCA reports that the onshored UK MiFR transparency regime provides it with new decision-making powers as well as new obligations. This includes a degree of flexibility during a 4 year transitional period to allow it to build the systems necessary to operate the system as the European Securities and Markets Authority currently operates it, and to change the regime if need be given the possible move from an EU-wide trading data set to a UK-only data set.
The statements of policy outline how the FCA expects to use the new powers.
They cover:
- suspending the use of pre-trade transparency waivers for a trading venue for the purposes of the double volume cap under Article 5(3B) of onshored MiFIR;
- withdrawing a pre-trade transparency waiver granted for a trading venue in respect of non-equity financial instruments under Article 9(3) of onshored MiFIR;
- suspending the pre-trade transparency obligations for trading venues in respect of non-equity financial instruments referred to in Article 8 under Article 9(4A) of onshored MiFIR and suspending the post-trade transparency obligations for trading venues in respect of non-equities referred to in Article 10 under Article 11(2A) of onshored MiFIR;
- determining the standard market size of equity instruments for the purposes of the pre-trade transparency regime for systematic internalisers under Article 14(6A) of onshored MiFIR;
- suspending the post-trade transparency obligations for non-equity transactions taking place outside a trading venue referred to in Article 21(1) under Article 21(4A) of onshored MiFIR; and
- directing that an equity instrument is to be treated as not having a liquid market under Articles 5(1) and 5(1A) of Commission Delegated Regulation 2017/567.
