Entities intending to provide a data reporting service (DRS) need to be authorised (or, in the case of operators of trading venues verified) by their national competent authority before they can provide the service.
Entities that provide a DRS are called a data reporting services provider (DRSP).
The types of DRS are:
- Approved reporting mechanisms (ARMs) - the service of reporting details of transactions to competent authorities on behalf of investment firms.
- Approved publication arrangements (APAs) - the service of publishing post-trade transparency reports on behalf of investment firms.
- Consolidated tape providers (CTPs) - the service of collecting post-trade transparency reports of specific financial instruments from regulated markets, multilateral trading facilities, organised trading facilities and APAs. They then consolidate these reports into a continuous electronic live data stream providing price and volume information per financial instrument.