4.V.1.3.4 CESR guidance of 2007: performing the calculation of the free float

CESR also provided guidance on the calculation of the free float, both before and after MiFID I entered into force. During the drafting period of MiFID I, CESR indicated that the data required to perform the free float calculation would be available to the responsible NCA on the basis of the Transparency Obligations Directive.1 CESR added that where the data on the basis of the Transparency Obligations Directive was not available, the free float could be calculated by using a widely accepted/used EU-wide index calculalation as a proxy.2 After MiFID I entered into force, CESR stated in the CESR internal guidebook that the free float only needed to be calculated where the other liquidity criteria (i.e. 500 transactions or 2 million euro turnover and being traded daily) were met. CESR noted that the basic assumption of the MiFID I Implementing Regulation was that a share that meet those criteria was deemed liquid. CESR stated that the need to calculate the free float needed to be decided accordingly.3