The European Markets and Supervisory Authority (ESMA) has clarified the data reporting service providers that will be directly subject to its supervision.
This follows the adoption of the European Commission Delegated Act in March, which details the derogation criteria under which data reporting service providers (DRSPs) will be supervised directly by ESMA, rather than by their national competent authorities (NCAs).
ESMA, the EU securities market regulator, took on its new mandate on 1 January 2022 as direct supervisor of DRSPs and has assessed which data providers will come under its supervision on the basis of their cross-border activity and the volume of transactions reported.
According to this methodology, it has announced that nine DRSPs will fall under its regulatory supervision, notably AQ Metrics Lted, Tradeweb EU B.V., CBOE Europe B.V., Unavista TRADEcho B.V., Bloomberg Data Reporting Services B.V., MarketAxess Post-Trade B.V., Krajowy Depozyt Papierów Wartosciowych S.A., Nasdaq Stockholm AB, and Euronext Paris SA.
These nine DRSPs account for more than 99 per cent of transactions reported by Authorised Reporting Mechanisms (ARMs) and more than 99 per cent of transactions published by the Authorised Publication Arrangements (APAs).
The remaining ARMs and APAs will remain subject to supervision by their respective NCAs.
