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In this act Article 5 of 26
Text as of 2 Mar 2026 · Consolidated version of 23 August 2026 · Same wording as today’s text.Today’s text

Article 5 — Assessment of liquidity of equity instruments by the competent authorities (Article 2(1), point (17)(b), of Regulation (EU) No 600/2014)

Financial servicesLevel 2Delegated RegulationMiFIRIn forceOfficial source

5(1)

1.The competent authority of the most relevant market in terms of liquidity as specified in Article 16 of Commission Delegated Regulation (EU) 2017/590 shall assess whether a share, depositary receipt, exchange traded fund or a certificate has a liquid market for the purposes of Article 2(1), point (17)(b), of Regulation (EU) No 600/2014 in accordance with Articles 1 to 4 of this Regulation in each of the following scenarios:

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5(1)(a)
(a)before the financial instrument is first traded on the trading venue, as specified in Article 1(4), Article 2(4), Article 3(4) and Article 4(4);
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5(1)(b)
(b)between the end of the first four weeks of trading and the end of the first six weeks of trading of the financial instrument;
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5(1)(c)
(c)between the end of every calendar year and before 1 March of the following year for financial instruments traded on a trading venue before 1 December of the relevant calendar year;
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5(1)(d)
(d)immediately after the moment where, following a corporate action, any previous assessment has changed.
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For the purposes of point (b), the assessment shall be based on the market capitalisation at the last trading day of the first four weeks of trading, the average daily number of transactions and the average daily turnover taking into consideration all transactions executed in the Union for that financial instrument during the first four weeks of trading. For the purposes of that assessment, the denominator shall be the number of days on which the financial instrument was available for trading on the most relevant market in terms of liquidity, as referred to in Article 4 of Delegated Regulation (EU) 2017/587, and on which such market was open.

For the purposes of point (c), the assessment shall be based on the market capitalisation at the last trading day of the relevant calendar year, the average daily number of transactions and the average daily turnover taking into Consideration all transactions executed in the Union for that financial instrument in that year. For the purposes of that assessment, the denominator shall be the number of days on which the financial instrument was available for trading on the most relevant market in terms of liquidity, as referred to in Article 4 of Delegated Regulation (EU) 2017/587, and on which such market was open.

Competent authorities shall publish the result of their assessment immediately upon completion of the assessment.

5(2)

2.Competent authorities, market operators and investment firms, including investment firms operating a trading venue, shall use the information published in accordance with paragraph 1:

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5(2)(a)
(a)for a period of six weeks commencing on the first day of trading of the financial instrument, where the assessment is carried out pursuant to paragraph 1, point (a);
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5(2)(b)
(b)for a period commencing six weeks after the first day of trading of that financial instrument and ending on the day preceding the first Monday of April of the year of publication of the information in accordance with paragraph 1, point (c), where the assessment is carried out pursuant to paragraph 1, point (b);
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5(2)(c)
(c)for a period of one year commencing on the first Monday of April following the date of publication where the assessment is carried out pursuant to paragraph 1, point (c).
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Where the information referred to in this paragraph is replaced by new information pursuant to paragraph 1, point (d), competent authorities, market operators and investment firms, including investment firms operating a trading venue, shall use that new information for the purposes of Article 2(1), point (17)(b), of Regulation (EU) No 600/2014.

5(3)

3.For the purposes of paragraph 1, trading venues shall submit to competent authorities the information set out in the Annex within the following timeframes:

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5(3)(a)
(a)for financial instruments which are admitted to trading for the first time, before the day on which the financial instrument is first traded;
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5(3)(b)
(b)for financial instruments already admitted to trading, in all the following timeframes:
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5(3)(b)(i)
(i)no later than three days after the end of the first four weeks of trading;
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5(3)(b)(ii)
(ii)after the end of every calendar year but no later than 3 January of the following year;
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5(3)(b)(iii)
(iii)immediately after the moment where, following a corporate action, the information previously submitted to the competent authority has changed.
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