1. Introduction

On 1 March 2022, annual transparency calculations for equity instruments were published by ESMA. They shall apply from 1 April 2022 until 31 March 2023.

As a consequence of the update, the tick size determined for each share and depositary receipt traded on Xetra (XETR) and Börse Frankfurt (XFRA) might be modified on 1 April 2022 and order deletions might take place on Xetra (XETR, system: T7).

Results on a per instrument basis are provided in the attached Excel file.

Start of validity: 1 April 2022
End of validity: 31 March 2023

2. Required action

There is no required action. Members should check if their orders will be affected by deletions on 1 April 2022 due to the new tick sizes.

3. Details of the initiative

The calculations include in particular:

• the determination of the most relevant market in terms of liquidity (MRMTL) in accordance with RTS 1 (Commission Delegated Regulation 2017/590);
• the determination of the average daily number of transactions (ADNTE) on the most relevant market in terms of liquidity (MRMTL) determining the tick-size for shares and depositary receipts;
• the adjustment of the ADNTE for shares whose main pool of liquidity is in a third country in accordance with amended RTS 11 (Commission Delegated Regulation 2019/443).

In consequence, the tick size determined for shares and depositary receipts traded on Xetra (XETR) and Börse Frankfurt (XFRA) might be affected on 1 April 2022.

Impact on the trading venues Xetra (XETR) and Börse Frankfurt (XFRA):

Trading venue Xetra (XETR, system: T7):

On 1 April 2022, during the start phase at the beginning of the day, orders whose limits are not compliant with the tick size of the new liquidity band will be deleted. The deletion will be conducted on a single order basis and the deletion reason will be either “Invalid Limit Price” or “Invalid Stop Limit Price”.

Trading venue Börse Frankfurt (XFRA, system: T7):

On 1 April 2022, all orders placed on Börse Frankfurt will remain in the T7 system, even those orders whose limit is not compliant with the tick size of the new liquidity band.

Attachment: 

• Status quo for the instruments subject to the tick size regime (except ETFs) on FWB and updated with yearly calculations for 2022

Further information