The European Securities and Markets Authority (ESMA) has published a statement on the use of UK data in ESMA databases and the performance of MiFID II calculations under a no-deal Brexit.

ESMA is issuing this statement in relation to the impact on ESMA’s databases in a no-deal scenario, whereby the United Kingdom’s Financial Conduct Authority (FCA) will cease sending data to ESMA and will no longer have access to ESMA’s IT applications and databases. Under a no-deal Brexit, no new UK-related data will be received and processed by ESMA nor published on the ESMA website from 30 March 2019.

ESMA’s statement aims to inform stakeholders on the approach it will take on all ESMA IT applications and databases. It sets out details on the following calculations under a no-deal Brexit:

• Reference data;
• Relevant Competent Authority (RCA);
• Annual transparency calculations for equity instruments;
• Transparency calculations for non-equity instruments (Quarterly liquidity determination for bonds & Annual transparency calculations for bonds (LIS, SSTI) and for all non-equity instruments other than bonds (liquidity status, LIS, SSTI));
• Calculations for systematic internalisers (SI) determination;
• Double Volume Cap; and
• Ancillary Activity calculations.
• Next steps

ESMA is aware that there currently remains a high level of uncertainty as to the final timing and conditions of Brexit. Should these change, ESMA will adjust its approach for its IT applications and databases and will inform the public of this as soon as possible.

Source: ESMA

Important stuff from @ESMAComms. In no-deal scenario, it will gradually phase out UK-related data over 12 month period for purposes of MiFID II dark pool cap calculation, to prevent 'sudden cliff-edge' effect (ie because so much dark trading occurs in UK) https://t.co/L2umU1oggm

— Tim Cave (@_TimCave) February 5, 2019