EU Equity pre- and post-trade transparency regulation: from ISD to MiFID II
Einde inhoudsopgave
EU Equity pre- and post-trade transparency regulation (LBF vol. 21) 2021/5.VI.2.2.1:5.VI.2.2.1 Reporting parties: RMs, MTFs, APAs, and CTPs
EU Equity pre- and post-trade transparency regulation (LBF vol. 21) 2021/5.VI.2.2.1
5.VI.2.2.1 Reporting parties: RMs, MTFs, APAs, and CTPs
Documentgegevens:
mr. J.E.C. Gulyás, datum 01-02-2021
- Datum
01-02-2021
- Auteur
mr. J.E.C. Gulyás
- JCDI
JCDI:ADS266770:1
- Vakgebied(en)
Financieel recht / Bank- en effectenrecht
Financieel recht / Europees financieel recht
Financiële dienstverlening / Financieel toezicht
Toon alle voetnoten
Voetnoten
Voetnoten
For an examination of the MiFID I-regime, reference is made to chapter 4(section V).
The MiFID II-definitions of APAs and CTPs can be found in art. 4(1)(52) (APA) and art. 4(1)(53) (CTP) . For an examination of APAs and CTPs, reference is made to chapter 13.
ESMA, Press Release: ESMA recommends real-time consolidated tape for equity, 5 December 2019(ESMA71-99-1248).
Deze functie is alleen te gebruiken als je bent ingelogd.
The calculations/estimates for the MiFID II equity pre-trade transparency regime require complete and accurate data.1MiFID II covers provisions to ensure the data is submitted to the NCA (or ESMA in case of delegation). The general MiFID II requirement is laid down in MiFIR. MiFIR states that, in order to perform the MiFID II transparency calculations, NCAs may require information from: (a) RMs and MTFs (trading venues), (b) so-called APAs (Approved Publication Arrangements), and (c) so-called CTPs (Consolidated Tape Providers).2 RMs, MTFs, APAs, and CTPs are required to cooperate with the data requests from NCAs (or ESMA in case of delegation).3
RMs, and also to some extent MTFs, were already reporting data for the purposes of calculations/estimates to their NCA under MiFID I.4 New under MiFID II is the inclusion of all MTFs, as well as APAs and CTPs. The reason for including all MTFs, APAs, and CTPs as data reporting parties under MiFID II is because MiFID II aims to collect data from a variety of sources (i.e. not only RMs and some MTFs). MiFID II states that a single source may not always hold a complete data set for an asset class or even a particular instrument.5 In other words, MiFID II intends to get a complete source of data for the calculations/estimates by requiring RMs, MTFs, APAs and CTPs to submit data to their NCA (or ESMA in case of delegation). There is also another reason for including APAs and CTPs. MiFID II by definition requires APAs and CTPs to engage in publication and/or consolidation services with regard to post-trade data. In a nutshell, APAs provide post-trade services for investment firms outside RMs/MTFs, whilst CTPs provide consolidation and publication services for all post-trade data of RMs, MTFs, and APAs.6 Given that the MiFID II equity (pre-trade) calculations/estimates usually require post-trade data, it is deemed necessary to make APAs and CTPs MiFID II reporting parties, alongside RMs and MTFs.7
For the sake of completeness, until this point in time no CTP has been authorised under MiFID II.8 This means that at the moment the data for the MiFID II equity (pre-trade) transparency calculations/estimates only comes from RMs, MTFs, and APAs. In order to stay aligned with the MiFID II text and to accommodate potential future changes (i.e. CTPs might become authorised in the future), the following continues to use the MiFID II text including ‘CTPs’.