26 March 2021

ESMA advises on framework for data reporting service providers

The advice focuses on the fees, fines and penalties applicable to DRSPs subject to EU supervision as well as the criteria determining whether certain DRSPs may be exempted from ESMA supervision (derogation criteria).

ESMA advises on framework for data reporting service providers The European Securities and Markets Authority, the EU’s securities markets regulator, publishes today advice to the European Commission related to data reporting service providers (DRSP). The advice focuses on the fees, fines and penalties applicable to DRSPs subject to EU supervision as well as the criteria determining whether certain DRSPs may be exempted from ESMA supervision (derogation criteria). It aims to provide a simple and clear framework by leveraging on the existing frameworks for Trade Repositories and Securitisation Repositories and by streamlining the approach for the assessment of the derogation criteria. Following the ESAs’ Review, authorisation and supervision of authorised reporting mechanisms (ARMs) and approved publication arrangements (APAs) will transfer from competent authorities to ESMA.

Steven Maijoor, Chair, said:
“The delivery of this advice is a major step in the preparation for the new supervisory responsibilities of ESMA.
“ESMA has taken into the feedback from the consultation into account and has refined the derogation criteria to assure a balanced allocation of supervisory responsibilities regarding DRSPs between NCAs and ESMA.
“It is of utmost importance for DRSPs to have certainty on the applicable regulatory framework prior to the transfer of supervisory responsibilities to ESMA. I would, therefore, welcome the swift adoption by the European Commission of the relevant delegated acts on the basis of this advice.”

ESMA recommends a two-step assessment of the derogation criteria

ADVISES ON FRAMEWORK FOR DATA REPORTING SERVICE PROVIDERS

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