On 16 December 2020, the FCA published a supervisory statement setting out how it will operate the pre- and post-trade transparency regime for the secondary trading of financial instruments after the end of the transition period. The statement replaces similar statements issued in March and October 2019.
The statement covers a broad range of issues:
- 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 (DVC).
- Transparency waivers and deferrals.
- Equity transparency.
- Frequent batch auctions.
- Bond transparency.
- Derivatives and other non-equity instruments transparency.
- Actionable indications of trading interest.
- Systematic internalisers.
- Territorial scope of trade reporting.
- Trade reporting and the temporary permissions regime.
- Trade reporting and the temporary transitional power.
- Tick sizes.
- Commodity position limits.
The FCA states the statement is subject to change in the event of a free trade agreement being reached and mutual equivalence decisions being taken. It may also revise its approach as market conditions develop.