Requirement (MIFID)
Article 22 Determination of liquid shares
Requirements MIFID - REGULATION (EC) No 1287/2006
Description
Description
1. A share admitted to trading on a regulated market shall be
considered to have a liquid market if the share is traded daily,
with a free float not less than EUR 500 million, and one of the
following conditions is satisfied:
(a) the average daily number of transactions in the share is not
less than 500;
(b) the average daily turnover for the share is not less than EUR
2 million.
However, a Member State may, in respect of shares for which it is
the most relevant market, specify by notice that both of those
conditions are to apply. That notice shall be made public.
2. A Member State may specify the minimum number of liquid
shares for that Member State. The minimum number shall be no
greater than five. The specification shall be made public.
3. Where, pursuant to paragraph 1, a Member State would be
the most relevant market for fewer liquid shares than the
minimum number specified in accordance with paragraph 2, the
competent authority for that Member State may designate one or
more additional liquid shares, provided that the total number of
shares which are considered in consequence to be liquid shares
for which that Member State is the most relevant market does
not exceed the minimum number specified by that Member
State.
The competent authority shall designate the additional liquid
shares successively in decreasing order of average daily turnover
from among the shares for which it is the relevant competent
authority that are admitted to trading on a regulated market and
are traded daily.
4. For the purposes of the first subparagraph of paragraph 1,
the calculation of the free float of a share shall exclude holdings
exceeding 5 % of the total voting rights of the issuer, unless such
a holding is held by a collective investment undertaking or a
pension fund.
Voting rights shall be calculated on the basis of all the shares to
which voting rights are attached, even if the exercise of such a
right is suspended.
5. A share shall not be considered to have a liquid market for
the purposes of Article 27 of Directive 2004/39/EC until six
weeks after its first admission to trading on a regulated market, if
the estimate of the total market capitalisation for that share at the
start of the first day's trading after that admission, provided in
accordance with Article 33(3), is less than EUR 500 million.
6. Each competent authority shall ensure the maintenance and
publication of a list of all liquid shares for which it is the relevant
competent authority.
It shall ensure that the list is current by reviewing it at least
annually.
The list shall be made available to the Committee of European
Securities Regulators. It shall be considered as published when it
is published by the Committee of European Securities Regulators
in accordance with Article 34(5).
Comment
Applies to Article 27 of Directive 2004/39/EC