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MiFID II - Providers data reporting services

The expansion of the licence obligation under MiFID II is an important part of the revision of MiFID I. In order to ensure high-quality market data, MiFID II introduces new parties that are required to have a licence. This concerns parties that offer data reporting services. These parties are subject to continuous supervision and must have a licence from the AFM.

The service providers are, in principle, independent parties; however, investment firms or market operators may also offer data reporting services provided that they comply with the rules that apply to providers of data reporting services.

A distinction is made between the following services:

  • operation of an Approved Publication Arrangement (APA)
  • operation of a Consolidated Tape Provider (CTP)
  • operation of an Approved Reporting Mechanism (ARM).

An APA has a licence for providing services in the field of the publication of transaction reports on behalf of investment firms that settle transactions outside of a trading venue. A CTP has, in brief, a licence for providing services in the field of collecting market data that are published by trading venues and via an APA and for making this data available to the market in a consolidated form. An ARM has a licence for providing services in the field of reporting the details of transactions to national supervisors or ESMA on behalf of investment firms. Different organisational requirements apply for the providers.

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