Regulation (EU) No 600/2014 is amended as follows:
(1)
in Article 1(1), the following point is added:
‘(g)
the authorisation and supervision of data reporting services providers.’;
(2)
Article 2 is amended as follows:
(a)
paragraph 1 is amended as follows:
(i)
point (18) is replaced by the following:
‘(18)
“competent authority” means a competent authority as defined in point (26) of Article 4(1) of Directive 2014/65/EU and, for the authorisation and supervision of data reporting services providers, ESMA, with the exception of those approved reporting mechanisms (ARMs) and approved publication arrangements (APAs) with a derogation in accordance with paragraph 3 of this Article;’;
(ii)
the following point is inserted:
‘(22a)
“senior management” means senior management as defined in point (37) of Article 4(1) of Directive 2014/65/EU;’;
(iii)
points (34), (35) and (36) are replaced by the following:
‘(34)
“approved publication arrangement” or “APA” means a person authorised under this Regulation to provide the service of publishing trade reports on behalf of investment firms pursuant to Articles 20 and 21;
(35)
“consolidated tape provider” or “CTP” means a person authorised under this Regulation to provide the service of collecting trade reports for financial instruments listed in Articles 6, 7, 10, 12 and 13, 20 and 21 from regulated markets, MTFs, OTFs and APAs and consolidating them into a continuous electronic live data stream providing price and volume data per financial instrument;
(36)
“approved reporting mechanism” or “ARM” means a person authorised under this Regulation to provide the service of reporting details of transactions to competent authorities or to ESMA on behalf of investment firms;’;
(iv)
the following point is inserted:
‘(36a)
“data reporting services provider” means a person referred to in points (34) to (36) and a person referred to in Article 27b(2);’;
(b)
the following paragraph is added:
‘3. The Commission is empowered to adopt delegated acts in accordance with Article 50, specifying criteria to identify those ARMs and APAs that, by way of derogation from this Regulation on account of their limited relevance for the internal market, are subject to authorisation and supervision by a competent authority of a Member State as defined in point (26) of Article 4(1) of Directive 2014/65/EU.
When adopting the delegated act, the Commission shall take into account one or more of the following elements:
(a)
the extent to which the services are provided to investment firms authorised in one Member State only;
(b)
the number of trade reports or transactions;
(c)
whether the ARM or APA is part of a group of financial market participants operating cross border.
Where an entity is supervised by ESMA for any services provided in its capacity as a data reporting services provider under this Regulation, none of its activities as an ARM or APA shall be excluded from ESMA supervision under any delegated act adopted pursuant to this paragraph.’;
(3)
Article 22 is replaced by the following:
‘Article 22
Providing information for the purposes of transparency and other calculations
1. In order to carry out calculations for determining the requirements for the pre- and post-trade transparency and the trading obligation regimes referred to in Articles 3 to 11, Articles 14 to 21 and Article 32, which are applicable to financial instruments and for determining whether an investment firm is a systematic internaliser, ESMA and competent authorities may require information from:
(a)
trading venues;
(b)
APAs; and
(c)
CTPs.
2. Trading venues, APAs and CTPs shall store the necessary data for a sufficient period.
3. ESMA shall develop draft regulatory technical standards to specify the content and frequency of data requests and the formats and the timeframe in which trading venues, APAs and CTPs are to respond to data requests referred to in paragraph 1, the type of data that is to be stored, and the minimum period for which trading venues, APAs and CTPs are to store data in order to be able to respond to data requests in accordance with paragraph 2.
Power is delegated to the Commission to supplement this Regulation by adopting the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1095/2010.’;
(4)
in Article 26(1), the third subparagraph is replaced by the following:
‘The competent authorities shall without undue delay make available to ESMA any information reported in accordance with this Article.’;
(5)
Article 27 is replaced by the following:
‘Article 27
Obligation to supply financial instrument reference data
1. With regard to financial instruments admitted to trading on regulated markets or traded on MTFs or OTFs, trading venues shall provide ESMA with identifying reference data for the purpose of transaction reporting under Article 26.
With regard to other financial instruments covered by Article 26(2) traded on its system, each systematic internaliser shall provide ESMA with reference data relating to those financial instruments.
Identifying reference data shall be made ready for submission to ESMA in an electronic and standardised format before trading commences in the financial instrument that it refers to. The financial instrument reference data shall be updated whenever there are changes to the data with respect to a financial instrument. ESMA shall publish those reference data immediately on its website. ESMA shall give competent authorities access without undue delay to those reference data.
2. In order to allow competent authorities to monitor, pursuant to Article 26, the activities of investment firms to ensure that they act honestly, fairly and professionally and in a manner which promotes the integrity of the market, ESMA shall, after consulting the competent authorities, establish the necessary arrangements in order to ensure that:
(a)
ESMA effectively receives the financial instrument reference data pursuant to paragraph 1 of this Article;
(b)
the quality of the financial instrument reference data received pursuant to paragraph 1 of this Article is appropriate for the purpose of transaction reporting under Article 26;
(c)
the financial instrument reference data received pursuant to paragraph 1 of this Article is efficiently and without undue delay transmitted to the relevant competent authorities;
(d)
there are effective mechanisms in place between ESMA and the competent authorities to resolve data delivery or data quality issues.
3. ESMA shall develop draft regulatory technical standards to specify:
(a)
data standards and formats for the financial instrument reference data in accordance with paragraph 1, including the methods and arrangements for supplying the data and any update thereto to ESMA and transmitting it to competent authorities in accordance with paragraph 1, and the form and content of such data;
(b)
the technical measures that are necessary in relation to the arrangements to be made by ESMA and the competent authorities pursuant to paragraph 2.
Power is delegated to the Commission to supplement this Regulation by adopting the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1095/2010.
4. ESMA may suspend the reporting obligations specified in paragraph 1 for certain or all financial instruments where all of the following conditions are met:
(a)
the suspension is necessary in order to preserve the integrity and quality of the reference data subject to reporting obligation as specified in paragraph 1 which may be put at risk by any of the following:
(i)
serious incompleteness, inaccuracy or corruption of the submitted data, or
(ii)
unavailability in a timely manner, disruption or damage of the functioning of systems used for the submitting, collecting, processing or storing the respective reference data by ESMA, national competent authorities, market infrastructures, clearing and settlement systems, and important market participants;
(b)
the existing Union regulatory requirements that are applicable do not address the threat;
(c)
the suspension does not have any detrimental effect on the efficiency of financial markets or investors that is disproportionate to the benefits of the action;
(d)
the suspension does not create any regulatory arbitrage.
When taking the measure referred to in the first subparagraph of this paragraph, ESMA shall take into account the extent to which the measure ensures the accuracy and completeness of the reported data for the purposes specified in paragraph 2.
Before deciding to take the measure referred to in the first subparagraph, ESMA shall notify the relevant competent authorities.
The Commission is empowered to adopt delegated acts in accordance with Article 50 in order to supplement this Regulation by specifying the conditions referred to in the first subparagraph and the circumstances under which the suspension referred to in that subparagraph ceases to apply.’;
(6)
the following Title is inserted:
‘TITLE IVa
DATA REPORTING SERVICES