ESMA · ESMA_QA_1626 Answer Published
Recalculation of ADNT
- Regulation
- Markets in Financial Instruments Directive II (MiFID II) Directive 2014/65/EU- Secondary Markets
- Topic
- Tick size regime
- Submitted
- 2016-11-18
- Answered
- 2016-11-18
Question
Which types of corporate actions for an instrument may trigger a recalculation of ADNT?
Answer
[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.
This Q&A is published by European Securities and Markets Authority and is non-binding. It does not constitute legal advice. Updated weekly from official ESA sources.
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