Asset Servicing Regulation News | ESMA announces the reporting agencies it will directly supervise

The European Markets and Supervisory Authority (ESMA) has specified the providers of data communication services which will be directly subject to its supervision.

This follows the adoption of the European Commission’s Delegated Act in March, which details the exemption criteria under which Data Reporting Services Providers (DRSPs) will be supervised directly by ESMA, rather than by their competent national authorities (NCAs).

ESMA, the EU securities market regulator, took up its new mandate on 1 January 2022 as the direct supervisor of DRSPs and assessed the data providers that will come under its supervision on the basis of their cross-border activity and the volume of reported transactions.

According to this methodology, it announced that nine DRSPs will fall under its regulatory oversight, including AQ Metrics Ltd, Tradeweb EU BV, CBOE Europe BV, Unavista TRADEcho BV, Bloomberg Data Reporting Services BV, MarketAxess Post-Trade BV, Krajowy Depozyt Papierów Wartosciowych SA , Nasdaq Stockholm AB and Euronext Paris SA.

These nine DRSPs represent over 99% of transactions reported by Authorized Reporting Mechanisms (ARMs) and over 99% of transactions published by Authorized Publication Agreements (APAs).

The remaining ARMs and APAs will remain subject to the supervision of their respective CNAs.

Michael J. Birnbaum