The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, is inviting comments on draft technical standards related to Consolidated Tape Providers (CTPs), other data reporting service providers (DRSPs) and the assessment criteria for the CTP selection procedure under the Markets in Financial Instruments Regulation (MiFIR).

In the consultation ESMA is seeking input on the following topics:

• Proposed rules on input and output data, covering reporting instructions and data quality requirements for all CTPs and data contributors;
• Draft rules for the methodology for the equity CTP to redistribute revenue to data contributors and the criteria to suspend such redistribution;
• Clock synchronisation requirements for Systematic Internalisers (SIs) and DRSPs, in addition to trading venues operators and their members;
• The authorisation and organisational requirements for Authorised Publication Arrangements (APAs) and Approved Reporting Mechanisms (ARMs);
• New rules for the authorisation of CTPs; and
• Initial reflections on the assessment of CTP applicants.

The proposed draft technical standards (TS) are developed in the context of the review of MiFIR and will contribute to enhancing market transparency and removing the obstacles that have prevented the emergence of consolidated tapes (CT) in the European Union.Further information on the MiFID II /MiFIR review and the upcoming consultation process can be found on the dedicated webpage. Regular updates on the CTP selection are also published on ESMA’s website. 

Next Steps

ESMA will accept comments to the consultation until 28 August.Based on the responses received, ESMA will prepare the final report and intends to submit the final draft technical standards to the European Commission by 29 December 2024.A feedback statement on the specification of the assessment criteria for the CTP selection procedure is expected to be published by the end of 2024.

Source: ESMA