MAR 9.1 Application, introduction, approach and structure

1This chapter applies to:

1. (1)

   a UK person (that is a person whose registered office or head office is located in the UK) seeking authorisation to provide a data reporting service;

2. (2)

   A UK2 branch of a third country person seeking authorisation to provide a data reporting service ;1

3. (3)

   a2 MiFID investment firm operating a trading venue seeking verification of its rights to provide a data reporting service under regulation 5(b) or (c) of the DRS Regulations;1

4. (4)

   a UK RIE seeking verification of its rights to provide a data reporting service under regulation 5(d) of the DRS Regulations; and1

5. (5)

   a data reporting services provider.1

This chapter is not limited to operators of trading venues and firms.

[Note: article 59 of MiFID]

The original purpose of this chapter was to implement2 Title V of MiFID which2 sets out harmonised market data services authorisation and supervision requirements. These are designed to ensure a necessary level of quality of trading activity information across EU financial markets for users, and for competent authorities the regulator2 to receive accurate and comprehensive information on relevant transactions. These requirements provide for:

1. (1)

   approved publication arrangements (APAs) to:

   1. (a)

      improve the quality of trade transparency information published in relation to over the counter trading; and

   2. (b)

      contribute significantly to ensuring such data is published in a way that facilitates its consolidation with data published by trading venues;

2. (2)

   consolidated tape providers (CTPs) to supply a comprehensive consolidated tape of equity and equity-like financial instruments data from all APAs and trading venues to make it easier for market participants to gain access to a consolidated view of trade transparency information;

3. (3)

   CTPs to enable a comprehensive consolidated tape for non-equity financial instruments with an extended date for the application of national measures transposing MiFID; and

4. (4)

   approved reporting mechanisms (ARMs) to provide the service of transaction reporting on behalf of investment firms.

The market data services authorisation and supervision requirements in Title V of MiFID are onshored2 through a combination of:

1. (1)

   HM Treasury legislation in the form of:

   1. (a)

      the DRS Regulations which set out a separate regulatory framework for persons providing one or more data reporting service in the UK; and

   2. (b)

      the MiFI Regulations which set out additional provisions addressing requirements imposed by MiFIR and onshored regulations2;EU regulations;

2. (2)

   this chapter; and

3. (3)

   EU regulations onshored regulations2;including:

   1. (a)

      MiFID RTS 1;

   2. (b)

      MiFID RTS 2;

   3. (c)

      MiFID RTS 3;

   4. (d)

      MiFID RTS 13;

   5. (e)

      MiFID ITS 3;

   6. (f)

      the MiFID Org Regulation; and

   7. (g)

      the MiFIR Delegated Regulation.

2See M2G for further guidance on how the measures referred to in MAR 9.1.3G have been amended by the Markets in Financial Instruments (Amendment) (EU Exit) Regulations 2018 and FCA instruments made pursuant to the Financial Regulators’ Powers (Technical Standards etc.) (Amendment etc.) (EU Exit) Regulations 2018.