Read more about our new Market Data Processor (MDP) system, which will help manage the large changes in the volumes and range of data that entities with an obligation to report any of the market data types need to submit to us under MiFiD II.
MiFID II involves large changes in the volumes and range of data that entities with an obligation to report any of the market data types need to submit to us. We are developing a new Market Data Processor (MDP) system to help manage this. Entities that need to submit data should follow our on-boarding process and timetable to be ready for when the new regime comes into application in January 2018. The current Zen system will be replaced by the MDP system.
Our new MDP system will receive MiFID II market data from the UK financial industry and also market data, where applicable, from non-UK EEA financial market participants. This includes commodity derivatives position reports, incoming data reporting services providers, and other EEA competent authorities. The MDP system will also provide the interface to ESMA’s new Financial Instrument Reference Data System (FIRDS), including Transparency Calculations and Double Volume Cap, and the existing Transaction Reporting Exchange Mechanism (TREM).
We will support industry testing with a dedicated Industry Test Environment (ITE) during 1 July 2017 to 31 December 2017. In this period all submitting entities seeking to demonstrate conformance and compliance with the FCA’s technical specification from 3 January 2018 will be on-boarded on to the MDP. The successful on-boarding will form part of our Authorisation and Supervisory process for submitting entities. The ITE will continue to be available beyond the MiFID II implementation date of 3 January 2018 to support new entrants wishing to connect to our MDP and other change projects.
We have selected Sopra Steria to develop, maintain and support the MDP system, including the support for on-boarding submitting entities during the industry testing.
Types of data that need to be submitted
The following are the MiFID II market data types that will be submitted to our MDP system:
- transaction reports
- instrument reference data
- transparency reports
- double volume cap reports
- commodity derivative position reports
Who this applies to
Submitting entities can be any of the following:
- Approved Reporting Mechanisms (ARMs)
- Consolidated Tape Providers (CTPs)
- Approved Publication Arrangement (APAs)
- Regulated Markets (RMs)
- Operators of Multilateral Trading Facilities (MTFs)
- Operators of Organised Trading Facilities (OTFs)
- Systematic Internalisers (SIs)
- Other UK MiFID Investment Firms (IFs)
- UK branch of third country investment firms
- EEA Data Reporting Service Providers (DRSPs) / Trading Venues / Investment Firms
What you need to do: on-boarding process
Entities wishing to become submitting entities under MiFID II need to complete a confidentiality agreement (see details below) to request a copy of the Market Interface Specification (MIS). This provides the submitting entity with the technical details required to format and submit MiFID II market data to us.
Following receipt of the MIS, complete the MDP on-boarding application form (see details below) to advise us what MiFID II data types the entity will be submitting. At this time we would also expect submitting entities to advise when they will be ready to start industry testing.
MDP on-boarding fees, as consulted on in a consultation paper from July 2016 (CP16/19), will only be requested once the rules are finalised.
An MDP on-boarding pack, outlining the onboarding process and test conditions, will be issued to the applicant entities before industry testing.
MIS confidentiality agreement
To request a copy of the MIS:
- Download the MIS confidentiality agreement (DOCX).
- Complete the company detail information in section 2 (only one section 2 is required depending where the application company is based).
- Complete the company name of the receiving party, name and title for the signatory at the end of the document.
- Print and sign the completed document.
Scan and return it to us at email@example.com
The MIS will be sent to applicants upon receipt and validation of a completed confidentiality agreement.
MDP on-boarding application form
To submit an application:
- You must have already received the MIS.
- If you are a new entity applying for authorisation or recognition you must submit a relevant MiFID II application in order to receive a case reference number for inclusion in the MDP on-boarding application form.
- Download the MDP on-boarding application form (DOCX).
- Complete all the relevant sections.
- Print and sign the declaration as per the instructions within the form.
Scan and return it to us at firstname.lastname@example.org.
|1||MIS confidentiality agreement available on fca.org.uk||Now available|
Market Interface Specification sent to applicants upon receipt and validation of completed MIS confidentiality agreement
a) For Transaction Reports, Instrument Reference Data, Transparency Reports and Double Volume Cap Reports
|b) Revised version to include Commodity Position Reports||Second quarter 2017*|
Email email@example.com available for MIS requests and on-boarding queries only
|4||On-boarding application form available on the FCA website||Now available|
|5||FCA receipt of completed on-boarding application forms||Now available|
|6||On-boarding pack issued to applicant entities||Now available|
|7||Industry testing starts||3 July 2017|
|8||MiFID II regime comes into application||3 January 2018|
*Final timing to be confirmed.