TITLE II U.K. TRANSPARENCY FOR TRADING VENUES

CHAPTER 2 U.K. Transparency for non-equity instruments

[F1 Article 8 U.K. Pre-trade transparency requirements for fixed income instruments and derivatives etc

1. The FCA must by rules impose pre-trade transparency requirements on relevant persons in respect of the trading of such relevant instruments as the FCA determines should be subject to the requirements for the purposes of furthering—

(a) efficient price formation, and

(b) the fair evaluation of financial assets.

2. The power to make rules under paragraph 1 is exercisable only if the FCA considers that the rules are necessary or expedient for the purpose of advancing one or more of its operational objectives referred to in section 1B(3) of FSMA.

3. In making rules under paragraph 1 the FCA must (in particular) have regard to the impact that requirements imposed by the rules will have on market liquidity.

4. The reference in paragraph 1 to “pre-trade transparency requirements” is a reference to whatever kinds of requirements relating to transparency before trading that the rules may specify, for example—

(a) requirements to make public matters specified in the rules in respect of the trading of relevant instruments;

(b) requirements about the means by which, and the times at which, such matters are to be made public;

(c) requirements for the giving of access to the arrangements employed for the making of such matters public;

(d) requirements in respect of relevant instruments that are traded in a standardised and frequent way, if not subject to disclosure requirements of the kind mentioned in sub-paragraph (a).

5. Rules under paragraph 1 may—

(a) impose requirements by reference to the types of trading system used;

(b) impose different requirements in relation to different types of trading system;

(c) provide for the criteria by which the determination referred to in that paragraph is to be made.

6. In this Article and in Article 9—

• “relevant instruments” means bonds, structured finance products, emission allowances, derivatives and instruments included within package orders;

• “relevant persons” means market operators and investment firms operating a trading venue.]

Textual Amendments

F1 Arts. 8-11 substituted (29.10.2024 for specified purposes, 1.12.2024 in so far as not already in force) by Financial Services and Markets Act 2023 (c. 29), s. 86(3), Sch. 2 para. 7 (with s. 2(3)); S.I. 2024/1071, regs. 3(b)(ii), 4(b)(ii)