ESMA_QA_1626

Status: ✅ Answer Published

Link to ESMA Q&A tool: https://www.esma.europa.eu/publications-data/questions-answers/1626

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Regulatory Context

Regulation : MIF2

Level 1 Regulation: Markets in Financial Instruments Directive II (MiFID II) Directive 2014/65/EU- Secondary Markets

Level 2 Regulation: No information available

Level 3 Regulation: No information available

Topic: Tick size regime

Subject Matter: Recalculation of ADNT

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Question

Submission Date: 18 November 2016

Which types of corporate actions for an instrument may trigger a recalculation of ADNT?

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ESMA Answer

Answer Date: 18-11-2016

[ESMA 70-872942901-38 MiFID II MiFIR market structures Q&A, Q&A 4.2] Any corporate actions that the relevant NCA anticipates will lead to a material change in the average daily number of trades after the event may initiate the recalculation process per Article 4 of RTS 11. Normally such a circumstance may arise when the issuer plans to undertake, amongst other things, share buybacks or share issuance which will result in the instrument continuing to trade in a liquidity band that would not be optimal unless a recalculation is undertaken.

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This document was automatically extracted from the ESMA EMIR Q&A database.