Status: Please note you should read all Brexit changes to the FCA Handbook and BTS alongside the main FCA transitional directions. Where these directions apply the 'standstill', firms have the choice between complying with the pre-IP completion day rules, or the post-IP completion day rules. To see a full list of Handbook modules affected, please see Annex B to the main FCA transitional directions.

Article 4 Number and type of active market participants

  1. (1)

    In relation to the number and type of active market participants, the competent authority shall take into consideration the following elements:

    1. (a)

      the total number of market participants trading in that class of derivatives or relevant subset thereof is not lower than two;

    2. (b)

      the number of trading venues that have admitted to trading or are trading the class of derivatives or a relevant subset thereof;

    3. (c)

      the number of market makers and other market participants under a binding written agreement or an obligation to provide liquidity.

  2. (2)

    The competent authority’s analysis shall compare the ratio of market participants to the findings in the data obtained for the analyses of average size of trades and the average frequency of trades.