Q. We are a trading venue operator. Can you please clarify how we can provide a data reporting service under the derogation from needing authorisation in regulation 5(b) to (d) of the DRS Regulations2?
The derogation (or exception) in article 59(2) of MiFID allowed2 Member States to allow a trading venue operator to provide a data reporting service without prior authorisation, if the operator verified that they complied2 with Title V of MiFID.
The application process for a trading venue operator to become a data reporting services provider is the same as for a person to become a data reporting services provider, except for the requirements for the management body of a market operator addressed in MAR 9.5.3G below.
Successful applicants will become data reporting services providers and will be required to comply with the regulatory framework in MAR 9.1.3G. They will be subject to fees charged by the FCA in MAR 9.5.4G.
A. Yes. Where the members of the management body of the APA, the CTP or the ARM are the same as the members of the management body of the regulated market you will be deemed to have complied with the management body requirement in regulation 13(1)(a) and (b) of the DRS Regulations. You will only be required to complete the full name and personal national identification number or equivalent thereof fields of MAR 9 Annex 2D for each of these members of the management body. For any additional members of the management body of the APA, the CTP or the ARM that are not the same as the members of the management body of the regulated market, you must notify us of these persons by completing all fields of MAR 9 Annex 2D. You must notify us of any change in membership using MAR 9 Annex 6D.
Q. How do we go about applying to be an ARM?
A. In summary:
You should complete:
You should provide the documents referred to in:
If you consider that you can meet our specifications you should obtain the FCA MDP on-boarding application form at MAR 9 Annex 7D and provide the completed form and any relevant documents to us together with the associated fee in FEES 3.2.7R and FEES 4 Annex 11R. Our consideration of your application for authorisation as an ARM is dependent on us reviewing a completed FCA MDP on-boarding application form.
We may at any time request additional information to proceed with the assessment of the application.
During our consideration of your application for authorisation or verification, we will normally invite you to work with us to undertake the appropriate testing required for you to establish connection to us.
Having obtained and examined the necessary information we require from you, we will do one of three things in relation to your application for authorisation:
If we approve your application for authorisation or verification, we will confirm your authorised status.
A. No. If you are a MiFID investment firm that wishes to send transaction reports to us to satisfy your own transaction reporting obligations under MiFIR or a third country investment firm subject to a similar obligation pursuant to GEN 2.2.22AR2,
you do not need to become authorised as an ARM. You are permitted to connect directly to us although there will be a requirement to sign a MIS confidentiality agreement with us, to satisfy connectivity requirements and to undertake testing associated with connecting to our systems. For the associated costs please see FEES 3.2.7R for relevant on-boarding costs. If you want to connect to us to send reports on behalf of other investment firms then you must become authorised as an ARM.
Q. I am a data reporting services provider and am experiencing technical issues. What do I do?
A. In the first instance please contact Market Data Processor support at MDP.technicalOnboarding@soprasteria.com and copy DRSP supervision at MRT@fca.org.uk with a succinct summary of the technical issue(s) encountered.
A. Yes. The ability of a trading venue to submit data to an ARM is consistent with the definition of an ARM which enables a trading venue to submit information, on its own behalf, to an ARM. It is also consistent with paragraph 2 of article 9 [Security] of MiFID RTS 13, which enables a third party to submit information to an ARM on behalf of others. More generally, it supports the purpose underlying MiFIR and MiFID of facilitating the detection of cases of market abuse.
Q. Can a group of investment firms aggregate their reporting via an internal hub?
A. Yes. A group of investment firms may use a hub to assist with aggregating transaction reporting data for each legal entity that is an investment firm in the group for the purposes of article 26 of MiFIR provided that the hub is either an ARM or the hub uses an ARM to report the transaction data to the FCA. Paragraph 2 of article 9 [Security] of MiFID RTS 13 confirms that an investment firm (‘reporting firm’) may use a third party (‘submitting firm’) to submit information to an ARM.
Q. Which form should I use if I wish to cancel some, but not all, of my data reporting service?
A. You should use the form at MAR 9 Annex 3D. If you expect the wind-down (run-off) of the service that you wish to cancel to take longer than six months you should discuss this with your usual supervisory contact.
A. Yes. The MIS confidentiality agreement is available on our website at www.fca.org.uk/markets/market-data-regimes/market-data-reporting-mdp