Data reporting services providers

MiFID II introduces a requirement for entities intending to provide a data reporting service (DRS) as a regular occupation or business to be authorised (or, in the case of operators of trading venues, the operator’s compliance with Title V to be verified) by their national competent authority prior to the provision of a DRS. That regulator will supervise the provision of the DRS on an on-going basis.

A body that provides a DRS is 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.

ARMs and Trade Data Monitors (TDMs) currently operating reporting services in the UK will need to submit new applications to be authorised as DRSPs if they wish to continue providing these services from 3 January 2018.

Authorisation process

On 3 July 2017, the UK legislation relating to DRSP authorisation and verification applications came into force.  We are now able to accept formal applications from entities wishing to provide DRSs.

For applications received from 3 July 2017, we will determine an application for an authorisation or verification within six months, beginning from the date on which we receive the completed application.  With one exception; any entity wishing to provide the service of a non-equity CTP from 3 September 2019 should apply for authorisation by 3 March 2019.

Download Annex I - Application form to provide the service of a DRSP (DOCX)

Download Annex II - Notification form for list of members of a management body (DOCX)

Applicants will need to submit both of the completed forms, along with any supporting documentation, to [email protected]. Alternatively, these can be posted to: Authorisations Support Team, Financial Conduct Authority, 25 The North Colonnade, London E14 5HS

We have also prepared authorisation application notes to clarify aspects of completing both the application form and the notification form.

The guidance notes are useful and will clarify the correct approach to complete the notification form for the list of members of a management body, where a market operator seeks authorisation to operate a DRSP and the members of its management body are the same as the members of the management body of the proposed DRSP.

Download DRSP authorisation application notes (DOCX)

DRSP authorisation and supervision forms

Name of form

What is it for

Applicable MAR 9 provisions

Application form to provide the service of a DRSP (Annex I)

A person who wishes to apply for authorisation as a DRSP under Regulation 7 of the Data Reporting Services Regulations 2017.

Operators of trading venues who wish to apply to operate a DRSP through prior verification of compliance with Title V MiFID II obligations under Regulation 8 of the Data Reporting Services Regulations 2017.

MAR 9.2.1D-MAR 9.2.2 G; MAR 9.2.6D

Notification form for list of members of a management body (Annex II)

A persons who wishes to apply for authorisation as a DRSP under Regulation 7 of the Data Reporting Services Regulations 2017.

Operators of trading venues who wish to apply to operate a DRSP through prior verification of compliance with Title V MiFID II obligations under Regulation 8 of the Data Reporting Services Regulations 2017.

MAR 9.2.1D-MAR 9.2.2 G; MAR 9.2.6D

Variation of Authorisation of a Data Reporting Services Provider (DRSP)*

Existing DRSPs who wish to:

  • vary its authorisation to provide one or more additional data reporting services in accordance with Regulation 12(1) of the Data Reporting Services Regulations 2017 or
  • vary its authorisation so as to remove one or more data reporting services in accordance with Regulation 12(1) of the Data Reporting Services Regulations 2017, where at least one data reporting service will continue to be provided going forward.

MAR 9.2.3D-MAR 9.2.4 G; MAR 9.2.6D

Cancellation of Authorisation of a Data Reporting Services Provider (DRSP)*

Existing DRSPs who wish to cancel its data reporting services authorisation in accordance with Regulation 11(1)(b) of the Data Reporting Services Regulations 2017, for the purpose of ceasing provision of ALL data reporting services.

MAR 9.2.5 D; MAR 9.2.6D

Notification form for changes to the membership of the management body (Annex III)*

Existing DRSPs who wish to notify any change to the membership of its management body before such change takes effect, or where this is impossible, within 10 working days after the change.

MAR 9.3.2 D - MAR 9.3.3G; MAR 9.3.12D

Material Change in information for a Data Reporting Services Provider (DRSP)*

Existing  DRSPs who wish to:

  • notify us of a change of the name or address of the DRSP.
  • notify us before implementation, where possible of a material change in information provided at time of authorisation.

MAR 9.3.1D; MAR 9.3.12D

Data Reporting Services Provider (DRSP) Ad hoc notification*

Existing DRSPs who wish to notify us in respect of all matters required by RTS 13. Information to be notified using this form includes information relating to planned significant changes to a DRSP’s IT system, breaches in physical and electronic security measures and service interruptions or connection disruptions.

MAR 9.3.10 D – MAR 9.3.11G; MAR 9.3.12D

Yearly Notification Form for a Data Reporting Service Provider (DRSP)*

Existing DRSPs to notify us of its on-going compliance with Title V of MiFID II and the information provided at the time of authorisation and thereafter.

MAR 9.3.8 D – MAR 9.3.9G; MAR 9.3.12D

MIS confidentiality agreement

 

FCA MDP on-boarding application form

Please refer to the Market data reporting and MDP page

MAR 9.3.4 D – 9.3.7 G and MAR 9.5.5 G

*Form will be available from the fourth quarter of 2017

The Market Data Processor (MDP)

Entities that need to submit MiFID II market data to us should follow our MDP on-boarding process and timetable to be ready for when the new regime comes into force from 3 January 2018.

An ARM seeking to fulfil its market data provision obligations must be able to demonstrate compliance with our market interface specification (MIS) as a condition of authorisation.

An APA and CTP do not have to demonstrate compliance with the MIS as a condition of authorisation. However, an APA and a CTP will have market data provision obligations under MIFIR and will be required to submit data to us.

We encourage APAs and CTPs seeking a connection to our MDP system, to begin the MDP on-boarding process and establish compliance with the MIS as soon as possible.

In MAR 9 in the FCA Handbook, we confirm the timescales under which the MDP on-boarding process should be commenced by APAs and CTPs seeking a connection to the MDP.

DRSP Fees

The authorisation fee to operate a DRS is £5,000 for the first application and a discount of 50% for each additional DRS application. The discount applies whether the applications were made at the same time or later. The fee is not refundable, even if your application is unsuccessful.

We consulted on the DRSP annual supervisory fees in CP15/34 and indicated that we expect the fee to fall within the range of £20,000 - £30,000.  We intend to consult on the full flat-rate fee shortly.

MDP Fees

As outlined in FEES 3.2.7 R of the FCA Handbook, the associated MDP on-boarding fees are:

  • transaction reports £20,000
  • transparency calculation data £10,000
  • instrument reference data £10,000
  • double volume cap data £10,000
  • commodity position reports £10,000

An incoming DRSP, authorised in another EU member state, would pay 80% of each fee. The fee is not refundable.

​Regulatory framework

The regulatory framework for UK DRSPs is set out in the following sources:

  • The Data Reporting Services Regulations 2017/699 (DRS Regulations). The DRS Regulations transpose Title V of MiFID II
  • MAR 9 of the FCA Handbook
  • RTS 13 - regulatory technical standards on the authorisation, organisational requirements and the publication of transactions for data reporting services providers
  • ITS 3 - technical standards for the standard forms, templates and procedures for the authorisation of data reporting services providers and related notifications
  • Provisions of MiFIR with relevance to DRSPs, articles 17, 20, 21, 22 and 31 MiFIR
  • RTS 3 - regulatory technical standards on the volume cap mechanism and the provision of information for the purposes of transparency and other calculations
  • MiFID Organisational Regulation - organisational requirements and operating conditions for investment firms and defined terms for the purposes of that Directive
  • MiFIR Delegated Regulation - definitions, transparency, portfolio compression and supervisory measures on product intervention and positions