The Data Reporting Services Regulations 2017

PART 1 Introductory Provisions

Citation and commencement

1.—(1) These Regulations may be cited as the Data Reporting Services Regulations 2017.

(2) These Regulations come into force—

(a) on 3rd July 2017 for the purposes of—

(i) enabling applications to be made and determined under regulations 7 and 8;

(ii) enabling the FCA to give guidance under regulation 20;

(iii) enabling the FCA to prepare and issue a statement of policy under regulation 27;

(iv) regulations 19 (co-operation), 29 (offence of misleading the FCA), 33 (application of Part 11 of the Act: information gathering and investigations), 35 (restrictions on disclosure of information), 37 (application of Part 26 of the Act: notices), 38 (application of Part 27 of the Act: offences) and 42 (disclosure of confidential information); and

(v) regulation 40 (penalties, fees and exemption from liability in damages) in so far as it relates to a matter referred to in paragraph (i), (ii), (iii) or (iv);

(b) for all other purposes on 3rd January 2018.

Interpretation

2.—(1) In these Regulations—

“the Act” means the Financial Services and Markets Act 2000(1);

“APA” means a person authorised under regulation 10 to provide the service of publishing trade reports on behalf of investment firms pursuant to Articles 20 and 21 of the markets in financial instruments regulation;

“ARM” means a person authorised under regulation 10 to provide the service of reporting details of transactions to competent authorities or to ESMA on behalf of investment firms;

“authorised person” has the meaning given in section 31(2) of the Act;

“credit institution” has the meaning given in Article 4.1.27 of the markets in financial instruments directive;

“CTP” means a person authorised under regulation 10 to provide the service of collecting trade reports for financial instruments listed in Articles 6, 7, 10, 12, 13, 20 and 21 of the markets in financial instruments regulation from regulated markets, multilateral trading facilities, organised trading facilities and APAs and consolidating them into a continuous electronic live data stream providing price and volume data per financial instrument;

“data reporting service” means—

(a)

the service of publishing trade reports on behalf of investment firms pursuant to Articles 20 and 21 of the markets in financial instruments regulation;

(b)

the service of reporting details of transactions to competent authorities or to ESMA on behalf of investment firms; or

(c)

the service of collecting trade reports for financial instruments listed in Articles 6, 7, 10, 12, 13, 20 and 21 of the markets in financial instruments regulation from regulated markets, multilateral trading facilities, organised trading facilities and APAs and consolidating them into a continuous electronic live data stream providing price and volume data per financial instrument;

“data reporting service provider” means an APA, an ARM or a CTP;

“ESMA” means the European Securities and Markets Authority established by Regulation (EU) No 1095/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Securities and Markets Authority)(2);

“the FCA” means the Financial Conduct Authority;

“financial instrument” has the meaning given in Article 4.1.15 of the markets in financial instruments directive;

“home Member State” has the meaning given in Article 4.1.55(c) of the markets in financial instruments directive;

“investment firm” has the meaning given in Article 4.1.1 of the markets in financial instruments directive, but does not include a person to whom that directive does not apply by virtue of Article 2 of that directive;

“management body” in relation to a data reporting service provider means—

(a)

the board of directors, or if there is no such board, the equivalent body responsible for the management of the data reporting service provider; and

(b)

any other person who effectively directs the business of the provider;

“the markets in financial instruments directive” means Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments (recast)(3);

“the markets in financial instruments regulation” means Regulation (EU) No 600/2014 of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments(4);

“multilateral trading facility” has the meaning given in Article 4.1.22 of the markets in financial instruments directive;

“organised trading facility” has the meaning given in Article 4.1.23 of the markets in financial instruments directive;

“overseas clearing house” and “overseas investment exchange” have the meanings given in section 313(1) of the Act(5);

“the PRA” means the Prudential Regulation Authority;

“PRA-authorised person” has the meaning given in section 2B(5) of the Act(6);

“recognised body” has the meaning given in section 313(1) of the Act, but does not include—

(a)

an overseas investment exchange, or

(b)

an overseas clearing house;

“recognised clearing house” has the meaning given in section 285(1)(b) of the Act(7) but does not include an overseas clearing house;

“recognised CSD” means a legal person established in the United Kingdom who is authorised by the Bank of England for the purposes of Article 16 of Regulation (EU) No 909/2014 of the European Parliament and of the Council of 23 July 2014 on improving securities settlement in the European Union and on central securities depositories(8);

“recognised investment exchange” has the meaning given in section 285(1)(a) of the Act, but does not include an overseas investment exchange;

“recognition order” has the meaning given in section 313(1) of the Act;

“register” means the register maintained by the FCA under regulation 6;

“regulated market” has the meaning given in Article 4.1.21 of the markets in financial instruments directive;

“senior management” has the meaning given in Article 4.1.37 of the markets in financial instruments directive;

“systematic internaliser” has the meaning given in Article 4.1.20 of the markets in financial instruments directive;

“trading venue” has the meaning given in Article 4.1.24 of the markets in financial instruments directive;

“the Tribunal” means the Upper Tribunal;

“working day” means any day other than a Saturday, a Sunday, Christmas Day, Good Friday or a day which is a bank holiday under the Banking and Financial Dealings Act 1971(9) in any part of the United Kingdom.

(2) In this regulation, a “person authorised under regulation 10” includes a person whose compliance with Title V of the markets in financial instruments directive has been verified by the FCA under regulation 8.

(3) For the purposes of these Regulations, a person is established in the United Kingdom if it is—

(a) a natural person and its head office is situated in the United Kingdom; or

(b) a body corporate and its registered office is situated in the United Kingdom.

CTP definition and conditions

3.—(1) The following definitions in regulation 2(1) apply as if they do not include reference to Articles 10 and 21 of the markets in financial instruments regulation until 3rd September 2019—

(a) the definition of “CTP”, and

(b) paragraph (c) of the definition of “data reporting service”.

(2) The conditions for a CTP in regulation 15 apply as if paragraphs (5) to (8) were not included until 3rd September 2019.

Directly applicable EU regulations

4.—(1) In these Regulations, a reference to an Article of the markets in financial instruments regulation includes a reference to any directly applicable EU regulation made under that Article.

(2) In Parts 4 and 5 any reference to a requirement imposed by or under these Regulations includes a reference to a requirement imposed on a person to whom these Regulations apply under—

(a) a directly applicable EU regulation made under the markets in financial instruments directive or the markets in financial instruments regulation; and

(b) the markets in financial instruments regulation.

(1)

2000 c.8.

(2)

OJ no L331, 15/12/2010, p84.

(3)

OJ no L173, 12/6/2014, p349.

(4)

OJ no L173, 12/6/2014, p84.

(5)

Section 313(1) was amended by S.I. 2013/504. There are other amendments but none is relevant.

(6)

Section 2B was inserted by section 6 of the Financial Services Act 2012 (c.21).

(7)

Section 285(1) was amended by S.I. 2013/504.

(8)

OJ No L257, 28.8.2014, p1.

(9)

1971 c.80. Schedule 1 was amended by section 1 of the St Andrew’s Day Bank Holiday (Scotland) Act 2007 (asp 2). There are other amendments but none is relevant.