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REC 2.6 General safeguards for investors, provision of pre and post-trade information about share trading and suspension and removal of financial instruments from trading2

REC 2.6.1UK

Schedule to the Recognition Requirements Regulations, Paragraph 4(1)

2The [UK RIE] must ensure that business conducted by means of itsfacilitiesis conducted in an orderly manner and so as to afford proper protection to investors.

REC 2.6.2UK

Schedule to the Recognition Requirements Regulations, Paragraph 4(2)(aa)

2Without prejudice to the generality of sub-paragraph [4(1)], the [UK RIE] must ensure that -

it has transparent and non-discretionary rules and procedures -

(i)

to provide for fair and orderly trading, and

(ii)

to establish objective criteria for the efficient execution of orders;

REC 2.6.3UK

Schedule to the Recognition Requirements Regulations, Paragraph 4A

2(1)

The [UK RIE] must make arrangements for-

(a)

current bid and offer prices for shares, and

(b)

the depth of trading interest in shares at the prices which are advertised through its systems,

to be made available to the public on reasonable commercial terms and on a continuous basis during normal trading hours, subject to the requirements contained in Chapter IV of the [MiFID Regulation] [(see REC 2.6.7 EU and REC 2.6.21 EU to REC 2.6.24 EU)].

(2)

If [a UK RIE] decides to give investment firms and credit institutions required to publish their quotes in shares-

(a)

in accordance with Article 27 of [MiFID], or

(b)

by the [FCA],5

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access to the arrangements referred to in sub-paragraph (1), it must do so on reasonable commercial terms and on a non-discriminatory basis.

(3)

The [FCA]5 may waive the requirements of sub-paragraph (1) in the circumstances specified-

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(a)

in the case of shares to be traded on a multilateral trading facility operated by the [UK RIE], in Article 29.2 of [MiFID] and Chapter IV of the [MiFID Regulation] [(see REC 2.6.10 EU and REC 2.6.13 EU)]; or

(b)

in the case of shares to be traded on a regulated market operated by the [UK RIE], in Article 44.2 of [MiFID] and Chapter IV of the [MiFID Regulation] [(see REC 2.6.10 EU and REC 2.6.13 EU)].

REC 2.6.4UK

Schedule to the Recognition Requirements Regulations, Paragraph 4B

2(1)

The [UK RIE] must make arrangements for the price, volume and time of transactions executed in shares to be made available to the public as soon as possible after the time of the transaction on reasonable commercial terms, subject to the requirements contained in Chapter IV of the [MiFID Regulation] [(see REC 2.6.15 EU3 and REC 2.6.21 EU to REC 2.6.24 EU]).

(2)

If [a UK RIE] decides to give investment firms and credit institutions required to make public details of their transactions in shares-

(a)

in accordance with Article 28 of [MiFID], or

(b)

by the [FCA].5

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access to the arrangements referred to in sub-paragraph (1), it must do so on reasonable commercial terms and on a non discriminatory basis.

(3)

The [FCA]5 may permit [UK RIEs] to defer the publication required by sub-paragraph (1) in the circumstances specified, and subject to the requirements contained-

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(a)

in the case of shares traded on a multilateral trading facility operated by [a UK RIE], in Article 30.2 of [MiFID] and Chapter IV of the [MiFID Regulation] [(see REC 2.6.18 EU)]; or

(b)

in the case of shares traded on regulated market operated by [a UK RIE], in Article 45.2 of [MiFID] and Chapter IV of the [MiFID Regulation] [(see REC 2.6.18 EU)].

(4)

If the [FCA]5 permits [UK RIEs] to defer the publication required by sub-paragraph (1), those [UK RIEs] must ensure that the existence of and the terms of the permission are disclosed to users and members of their facilities and to investors.

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REC 2.6.5G

2Articles 29.2 and 44.2 of MiFID provide that the pre-trade transparency requirement can be waived based on market model or the size and type of orders. In particular this obligation can be waived in respect of transactions that are large in scale compared with normal market size for the share or type of share in question. Articles 30.2 and 45.2 of MiFID provide that publication of the details of transactions can be deferred based on their type or size. In particular this obligation can be deferred in respect of transactions that are large in scale compared with the normal market size for that share or that class of shares.

REC 2.6.6UK

Schedule to the Recognition Requirements Regulations, Paragraph 7E

2The rules of the [UK RIE] must provide that the [UK RIE] must not exercise its power to suspend or remove from trading on a regulated market operated by it any financial instrument which no longer complies with its rules, where such step would be likely to cause significant damage to the interests of investors or the orderly functioning of the financial markets.

REC 2.6.7EU

Article 17 of the MiFID Regulation

2Pre-trade transparency obligations

(1)

A ... market operator operating an MTF or a regulated market shall, in respect of each share admitted to trading on a regulated market that is traded within a system operated by it and specified in Table 1 of Annex II [(see REC 2.6.8 EU)], make public the information set out in paragraphs 2 to 6.

(2)

Where one of the entities referred to in paragraph 1 operates a continuous auction order book trading system, it shall, for each share as specified in paragraph 1, make public continuously throughout its normal trading hours the aggregate number of orders and of the shares those orders represent at each price level, for the five best bid and offer price levels.

(3)

Where one of the entities referred to in paragraph 1 operates a quote-driven trading system, it shall, for each share as specified in paragraph 1, make public continuously throughout its normal trading hours the best bid and offer by price of each market maker in that share, together with the volumes attaching to those prices.

The quotes made public shall be those that represent binding commitments to buy and sell the shares and which indicate the price and volume of shares in which the registered market makers are prepared to buy or sell.

In exceptional market conditions, however, indicative or one-way prices may be allowed for a limited time.

(4)

Where one of the entities referred to in paragraph 1 operates a periodic auction trading system, it shall, for each share specified in paragraph 1, make public continuously throughout its normal trading hours the price that would best satisfy the system's trading algorithm and the volume that would potentially be executable at that price by participants in that system.

(5)

Where one of the entities referred to in paragraph 1 operates a trading system which is not wholly covered by paragraphs 2 or 3 or 4, either because it is a hybrid system falling under more than one of those paragraphs or because the price determination process is of a different nature, it shall maintain a standard of pre-trade transparency that ensures that adequate information is made public as to the price level of orders or quotes for each share specified in paragraph 1, as well as the level of trading interest in that share.

In particular, the five best bid and offer price levels and/or two-way quotes of each market maker in that share shall be made public, if the characteristics of the price discovery mechanism permit it.

(6)

A summary of the information to be made public in accordance with paragraphs 2 to 5 is specified in Table 1 of Annex II. [(see REC 2.6.8 EU)]

REC 2.6.8EU

Table 1 of Annex II to the MiFID Regulation: Information to be made public in accordance with Article 17 (see REC 2.6.9EU)

2Type of system

Description of system

Summary of information to be made public, in accordance with Article 17

continuous auction order book trading system

a system that by means of an order book and a trading algorithm operated without human intervention matches sell orders with matching buy orders on the basis of the best available price on a continuous basis

the aggregate number of orders and the shares they represent at each price level, for at least the five best bid and offer price levels.

quote-driven trading system

a system where transactions are concluded on the basis of firm quotes that are continuously made available to participants, which requires the market makers to maintain quotes in a size that balances the needs of members and participants to deal in a commercial size and the risk to which the market maker exposes itself

the best bid and offer by price of each market maker in that share, together with the volumes attaching to those prices

periodic auction trading system

a system that matches orders on the basis of a periodic auction and a trading algorithm operated without human intervention

the price at which the auction trading system would best satisfy its trading algorithm and the volume that would potentially be executable at that price

trading system not covered by first three rows

A hybrid system falling into two or more of the first three rows or a system where the price determination process is of a different nature than that applicable to the types of system covered by [the] first three rows

adequate information as to the level of orders or quotes and of trading interest; in particular, the five best bid and offer price levels and/or two way quotes of each market maker in the share, if the characteristics of the price discovery mechanism so permit

REC 2.6.9EU

Recital 14 to the MiFID Regulation

2A waiver from pre-transparency obligations arising under Articles 29 or 44 of [MiFID] [(see REC 2.6.3 UK)] ... should not enable [MiFID investment firms] to avoid such obligations in respect of those transactions in liquid shares which they conclude on a bilateral basis under the rules of a regulated market or an MTF where, if carried out outside the rules of the regulated market or MTF, those transactions would be subject to the requirements to publish quotes set out in Article 27 of [MiFID].

REC 2.6.10EU

Article 18 of the MiFID Regulation

2Waivers based on market model and type of order or transaction

(1)

Waivers in accordance with Article 29(2) and 44(2) of [MiFID] [(see REC 2.6.3 UK)] may be granted by the[FCA]5 for systems operated by an MTF or a regulated market, if those systems satisfy one of the following criteria:

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(a)

they must be based on a trading methodology by which the price is determined in accordance with a reference price generated by another system, where that reference price is widely published and is regarded generally by market participants as a reliable reference price;

(b)

they formalise negotiated transactions [(see REC 2.6.11 EU)], each of which meets one of the following criteria:

(i)

it is made at or within the current volume weighted spread reflected on the order book or the quotes of the market makers of the regulated market or MTF operating that system or, where the share is not traded continuously, within a percentage of a suitable reference price, being a percentage and a reference price set in advance by the system operator;

(ii)

it is subject to conditions other than the current market price of the share [see REC 2.6.12 EU)].

For the purposes of point (b), the other conditions specified in the rules of the regulated market or MTF for a transaction of this kind must also have been fulfilled.

In the case of systems having functionality other than as described in points (a) or (b), the waiver shall not apply to that other functionality.

(2)

Waivers in accordance with Articles 29(2) and 44(2) of [MiFID] [(see REC 2.6.3 UK)], based on the type of orders may be granted only in relation to orders held in an order management facility maintained by the regulated market or the MTF pending their being disclosed to the market.

REC 2.6.11EU

Article 19 of the MiFID Regulation

2References to negotiated transaction

For the purpose of Article 18(1)(b) [(see REC 2.6.10 EU)] a negotiated transaction shall mean a transaction involving members or participants of a regulated market or an MTF which is negotiated privately but executed within the regulated market or MTF and where that member or participant in doing so undertakes one of the following tasks:

(a)

dealing on own account with another member or participant who acts for the account of a client;

(b)

dealing with another member or participant, where both are executing orders on own account;

(c)

acting for the account of both the buyer and seller;

(d)

acting for the account of the buyer, where another member or participant acts for the account of the seller;

(e)

trading for own account against a client order.

REC 2.6.12EU

Article 3 of the MiFID Regulation

2Transactions related to an individual share in a portfolio trade and volume weighted average price transactions

(1)

A transaction related to an individual share in a portfolio trade shall be considered, for the purposes of Article 18(1)(b)(ii) [(see REC 2.6.10 EU)], as a transaction subject to conditions other than the current market price.

(2)

A volume weighted average price transaction shall be considered, for the purposes of Article 18(1)(b)(ii) [(see REC 2.6.10 EU)], as a transaction subject to conditions other than the current market price.

REC 2.6.13EU

Article 20 of the MiFID Regulation

2Waivers in relation to transactions which are large in scale

An order shall be considered to be large in scale compared with normal market size if it is equal to or larger than the minimum size of order specified in Table 2 in Annex II [(see REC 2.6.14 EU)]. For the purposes of determining whether an order is large in scale compared to normal market size, all shares admitted to trading on a regulated market shall be classified in accordance with their average daily turnover, which shall be calculated in accordance with the procedure set out in Article 33.

REC 2.6.14EU

Table 2 in Annex II to the MiFID Regulation: Orders large in scale compared with normal market size

2Class in terms of average daily turnover (ADT)

ADT < €500 000

€500 000 < ADT < €1 000 000

€1 000 000 < ADT < €25 000 000

€25 000 000 < ADT < €50 000 000

ADT < €50 000 000

Minimum size of order qualifying as large in scale compared with normal market size

€50 000

€100 000

€250 000

€400 000

€500 000

REC 2.6.15EU

Article 27(1) of the MiFID Regulation

2Post-trade transparency obligation

1.

... regulated markets, and ... market operators operating an MTF shall, with regard to transactions in respect of shares admitted to trading on regulated markets concluded ... within their systems, make public the following details:

(a)

the details specified in points 2, 3, 6, 16, 17, 18 and 21 of Table 1 of Annex I [(see REC 2.6.16 EU)]

(b)

an indication that the exchange of shares is determined by factors other than the current market valuation of the share, where applicable [(see REC 2.6.17 EU)];

(c)

an indication that the trade was a negotiated trade, where applicable;

(d)

any amendments to previously disclosed information, where applicable.

Those details shall be made public either by reference to each transaction or in a form aggregating the volume and price of all transactions in the same share taking place at the same price at the same time.

REC 2.6.16EU

Points 2, 3, 6, 16, 17, 18 and 21 of Table 1 of Annex I of the MiFID Regulation

22.

Trading Day

The trading day on which the transaction was executed.

3.

Trading Time

The time at which the transaction was executed, reported in the local time of the competent authority to which the transaction will be reported, and the basis in which the transaction is reported expressed as Co-ordinated Universal Time (UTC) +/- hours.

6.

Instrument Identification

This shall consist in:

- a unique code to be decided by the competent authority (if any) to which the report is made identifying the [share] which is the subject of the transaction;

- if the [share] in question does not have a unique identification code, the report must include the name of the [share] ...

16.

Unit Price

The price per [share] excluding commission and (where relevant) accrued interest. ...

17.

Price Notation

The currency in which the price is expressed ...

18.

Quantity

The number of units of the [shares].

21.

Venue identification

Identification of the venue where the transaction was executed. That identification shall consist ... [of the regulated market or MTF's] ... unique harmonised identification code;

...

REC 2.6.17EU

Article 3 of the MiFID Regulation

2Transactions related to an individual share in a portfolio trade and volume weighted average price transactions

1.

A transaction related to an individual share in a portfolio trade ... shall ... be considered, for the purposes of Article 27(1)(b) [(see REC 2.6.15 EU)] as a transaction where the exchange of shares is determined by factors other than the current market valuation of the share.

2.

A volume weighted average price transaction ... shall be considered, for the purposes of Article 27(1)(b) [(see REC 2.6.15 EU)] as a transaction where the exchange of shares is determined by factors other than the current market valuation of the share.

REC 2.6.18EU

Article 28 of the MiFID Regulation

2Deferred publication of large transactions

The deferred publication of information in respect of transactions may be authorised, for a period no longer than the period specified in Table 4 in Annex II [(see REC 2.6.20 EU)] for the class of share and transaction concerned, provided the following criteria are satisfied:

(a)

the transaction is between [a MiFID investment firm] dealing on own account and a client of that firm;

(b)

the size of that transaction is equal to or exceeds the relevant minimum qualifying size, as specified in Table 4 in Annex II [(see REC 2.6.20 EU)].

In order to determine the relevant minimum qualifying size for the purposes of point (b), all shares admitted to trading on a regulated market shall be classified in accordance with their average daily turnover to be calculated in accordance with Article 33.

REC 2.6.19EU

Article 29(3), second sentence of the MiFID Regulation

Each constituent transaction [of a portfolio trade] shall be assessed separately for the purposes of determining whether deferred publication in respect of that transaction is available under Article 28 (see REC 2.6.18 EU).

REC 2.6.20EU

Table 4 in Annex II to the MiFID Regulation: Deferred publication thresholds and delays

2The table below shows, for each permitted delay for publication and each class of shares in terms of average daily turnover (ADT), the minimum qualifying size of transaction that will qualify for that delay in respect of a share of that type.

Class of shares in terms of average daily turnover (ADT)

ADT< €100 000

€100 000 < ADT < €1 000 000

€1 000 000 < ADT < €50 000 000

ADT < €50 000 000

Minimum qualifying size of transaction for permitted delay

Permitted delay for publication

60 minutes

€10 000

Greater of 5% of ADT and €25 000

Lower of 10% of ADT and €3 500 000

Lower of 10% of ADT and €7 500 000

180 minutes

€25 000

Greater of 15% of ADT and €75 000

Lower of 15% of ADT and €5 000 000

Lower of 20% of ADT and €15 000 000

Until end of trading day (or roll-over to noon of next trading day if trade undertaken in final 12 hours of trading day)

€45 000

Greater of 25% of ADT and €100 000

Lower of 25% of ADT and €10 000 000

Lower of 30% of ADT and €30 000 000

Until end of trading day next after trade

€60 000

Greater of 50% of ADT and €100 000

Greater of 50% of ADT and €1 000 000

100% of ADT

Until end of second trading day next after trade

€80 000

100% of ADT

100% of ADT

250% of ADT

Until end of third trading day next after trade

250% of ADT

250% of ADT

REC 2.6.21EU

Article 29 of the MiFID Regulation

2Publication and availability of pre- and post-trade transparency data

1.

A regulated market [or] MTF ... shall be considered to publish pre-trade information on a continuous basis during normal trading hours if that information is published as soon as it becomes available during the normal trading hours of the regulated market [or] MTF concerned, and remains available until it is updated.

2.

Pre-trade information, and post-trade information relating to transactions taking place on [regulated markets or MTFs] and within normal trading hours, shall be made available as close to real time as possible. Post-trade information relating to such transactions shall be made available in any case within three minutes of the relevant transaction.

3.

Information relating to a portfolio trade shall be made available with respect to each constituent transaction as close to real time as possible, having regard to the need to allocate prices to particular shares. ...

4.

Post-trade information referring to transactions taking place on a [regulated market or MTF] but outside its normal trading hours shall be made public before the opening of the next trading day of the [regulated market or MTF] on which the transaction took place.

REC 2.6.22EU

Recital 18 to the MiFID Regulation

2Information which is required to be made available as close to real time as possible should be made available as close to instantaneously as technically possible, assuming a reasonable level of efficiency and of expenditure on systems on the part of the person concerned. The information should only be published close to the three minute maximum limit in exceptional cases where the systems available do not allow for a publication in a shorter time

REC 2.6.23EU

2Public availability of pre- and post-trade information

... pre- and post-trade information shall be considered to be made public or available to the public if it is made available generally through one of the following to investors located in the Community:

(a)

the facilities of a regulated market or an MTF;

(b)

the facilities of a third party;

(c)

proprietary arrangements.

REC 2.6.24EU

Article 32 of the MiFID Regulation

2Arrangements for making information public

Any arrangement to make information public, adopted for the purposes of Article ... 30 [(see REC 2.6.23 EU)] ... , shall satisfy the following conditions:

(a)

it must include all reasonable steps necessary to ensure that the information to be published is reliable, monitored continuously for errors, and corrected as soon as errors are detected;

(b)

it must facilitate the consolidation of the data with similar data from other sources;

(c)

it must make the information available to the public on a non-discriminatory commercial basis at a reasonable cost.

REC 2.6.25EU

[deleted]5

REC 2.6.26G

2In determining whether:

  1. (1)

    business conducted by means of a UK RIE's facilities is conducted so;

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  2. (2)

    [deleted]5

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as to afford proper protection to investors, the FCA5 may, in addition to the matters dealt with in REC 2.7 to REC 2.12, have regard to all the arrangements made by the UK recognised body concerning the operation of its facilities.

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REC 2.6.27G

2The FCA5 may also have regard to the extent to which the UK recognised body's rules, procedures and the arrangements for monitoring and overseeing the use of its facilities:

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  1. (1)

    include appropriate measures to prevent the use of its facilities for abusive or improper purposes;

  2. (2)

    provide appropriate safeguards for investors against fraud or misconduct, recklessness, negligence or incompetence by users of its facilities;

  3. (3)

    provide appropriate information to enable users of its facilities to monitor their use of the facilities;

  4. (4)

    include appropriate arrangements to enable users of its facilities to raise queries about any use of those facilities which they are reported to have made;

  5. (5)

    include appropriate arrangements to enable users of its facilities to comply with any relevant regulatory or legal requirements; and

  6. (6)

    include appropriate arrangements to reduce the risk that those facilities will be used in ways which are incompatible with relevant regulatory or legal requirements;

and in this paragraph "appropriate" should be taken to mean appropriate having regard to the nature and scale of the UK recognised body's facilities, the types of persons who will use the facilities and the use which they will make of those facilities.

Orderly markets

REC 2.6.28G

2In determining whether a UK RIE is ensuring that business conducted by means of its facilities is conducted in an orderly manner (and so as to afford proper protection to investors), the FCA5 may have regard to the extent to which the UK RIE's rules and procedures:

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  1. (1)

    are consistent with the Market Abuse Regulation6;

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  2. (2)

    prohibit abusive trading practices or the deliberate reporting or publication of false information about trades; and

  3. (3)

    prohibit or prevent:

    1. (a)

      trades in which a party is improperly indemnified against losses;

    2. (b)

      trades intended to create a false appearance of trading activity ("wash trades");

    3. (c)

      cross trades executed for improper purposes;

    4. (d)

      improperly prearranged or prenegotiated trades;

    5. (e)

      trades intended to assist or conceal any potentially identifiable trading abuse ("accommodation trades"); and

    6. (f)

      trades which one party does not intend to close out or settle.

REC 2.6.29G

2In determining whether a UK RIE is ensuring that business conducted by means of its facilities is conducted in an orderly manner (and so as to afford proper protection to investors), the FCA5 may have regard to whether the UK RIE's arrangements and practices:

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  1. (1)

    enable members and clients for whom they act to obtain the best price available at the time for their size and type of trade;

  2. (2)

    ensure:

    1. (a)

      sufficient pre-trade transparency in the UK RIE's markets taking account of the practices in those markets and the trading systems used; and

    2. (b)

      sufficient post-trade transparency in the UK RIE's markets taking into account the nature and liquidity of the specified investments traded, market conditions and the scale of transactions, the need (where appropriate) to preserve anonymity for members and clients for whom they act, and the needs of different market participants for timely price information;

  3. (2A)

    (2) does not apply to a UK RIE's markets for shares admitted to trading on a regulated market. For pre-trade and post-trade transparency for a UK RIE's markets for shares admitted to trading on a regulated market, see in particular REC 2.6.3 UK and REC 2.6.4 UK and REC 2.6.7 EU to REC 2.6.24 EU;

  4. (3)

    include procedures which enable the UK RIE to influence trading conditions or suspend trading promptly when necessary to maintain an orderly market; and

  5. (4)

    if they include arrangements to support or encourage liquidity:

    1. (a)

      are transparent;

    2. (b)

      are not likely to encourage any person to enter into transactions other than for proper trading purposes (which may include hedging, investment, speculation, price determination, arbitrage and filling orders from any client for whom he acts);

    3. (c)

      are consistent with a reliable, undistorted price-formation process; and

    4. (d)

      alleviate dealing or other identified costs associated with trading on the UK RIE's markets and do not subsidise a market position of a user of its facilities.

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REC 2.6.30G
  1. (1)

    2The FCA5 accepts that block trading, upstairs trading and other types of specialist transactions (such as the "exchange of futures for physicals" in certain commodity markets) can have a legitimate commercial rationale consistent with the orderly conduct of business and proper protection for investors. They may therefore be permitted under the rules of a UK RIE, subject to any necessary safeguards, where appropriate.

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  2. (2)

    (1) does not apply to a UK RIE's markets for shares admitted to trading on a regulated market. For pre-trade and post-trade transparency for a UK RIE's markets for shares admitted to trading on a regulated market, see in particular REC 2.6.3 UK and REC 2.6.4 UK and REC 2.6.7EU to REC 2.6.24 EU.

Waiver of pre-trade transparency requirements and deferral of post-trade transparency requirements

REC 2.6.31G

2The FCA5 has exercised its power referred to in REC 2.6.3 UK(3) to waive the pre-trade transparency requirements referred to in REC 2.6.3 UK(1). The waivers granted are those based on market model (see REC 2.6.10 EU1), type of order (see REC 2.6.10 EU2) and transactions which are large in scale (see REC 2.6.13 EU). These waivers apply to all regulated markets and MTFs operated by UK RIEs.

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REC 2.6.32G

2The FCA5 has exercised its power referred to in REC 2.6.4 UK(3) to permit the deferral of the post-trade transparency requirements referred to in REC 2.6.4 UK(1). This permission is with respect to large transactions (see REC 2.6.17 EU). This permission applies to all regulated markets and MTFs operated by UK RIEs.

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Arrangements for making information public4

REC 2.6.33G

4The FCA5 considers that for the purposes of ensuring that published information is reliable, monitored continuously for errors, and corrected as soon as errors are detected (see REC 2.6.24 EU(a)), a verification process should be established which does not need to be external from the organisation of the publishing entity, but which should be an independent cross-check of the accuracy of the information generated by the trading process. This process should have the capability to at least identify price and volume anomalies, be systematic and conducted in real-time. The chosen process should be reasonable and proportionate in relation to the business.

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REC 2.6.34G
  1. (1)

    4In respect of arrangements facilitating the consolidation of data as required in REC 2.6.24 EU(b), the FCA5 considers information as being made public in accordance with REC 2.6.24 EU(b), if it:

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    1. (a)

      is accessible by automated electronic means in a machine-readable way;

    2. (b)

      utilises technology that facilitates consolidation of the data and permits commercially viable usage; and

    3. (c)

      is accompanied by instructions outlining how users can access the information.

  2. (2)

    The FCA5 considers that an arrangement fulfils the 'machine-readable' criteria where the data:

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    1. (a)

      is in a physical form that is designed to be read by a computer;

    2. (b)

      is in a location on a computer storage device where that location is known in advance by the party wishing to access the data; and

    3. (c)

      is in a format that is known in advance by the party wishing to access the data.

  3. (3)

    The FCA5 considers that publication on a non-machine-readable website would not meet the MiFID requirements.

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  4. (4)

    The FCA5 considers that information that is made public in accordance with REC 2.6.24 EU should conform to a consistent and structured format based on industry standards. Regulated markets or market operators operating an MTF can choose the structure that they use.

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