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.