Data reporting services providers play a role in the fulfilment of publication and reporting requirements which investment firms and operators of trading venues are obliged to fulfil pursuant to MiFIR. Their regulation is intended to improve trade transparency and promote a more integrated European market.

There are three kinds of data reporting services providers:

• Approved publication arrangement (APA): Investment firms are obliged pursuant to MiFIR to publish certain information on APAs within the context of over-the-counter post-trade transparency.
• Consolidated tape provider (CTP): CTPs may consolidate into a continuous electronic data stream the data published by investment firms or operators of trading venues pursuant to MiFIR and make this available to the public.
• Approved reporting mechanism (ARM): As an alternative to their own reporting system, investment firms can also make use of an ARM in fulfilment of their reporting requirements under MiFIR.

MiFID II (Title V, Articles 59 to 66) requires the provision of data reporting services by data reporting services providers to be authorised and supervised by the relevant authorities. At the same time, data reporting services explicitly do not constitute a new kind of investment or ancillary service. Instead, data reporting services providers are emerging as a new, separate category of service provider alongside investment firms and market operators.

Investment firms and market operators which operate a trading venue can make use of a concession. Approval for the provision of data reporting services will be included in their existing authorisation as trading venue operators. In these cases, however, MiFID II provides for an assessment by the supervisory authority that these investment firms must also meet the authorisation conditions.

The requirements for data reporting services providers arising from MiFID II have been implemented within the scope of the Second German Act Amending Financial Market Regulations (Zweites Finanzmarktnovellierungsgesetz – 2nd FiMaNoG) through changes to the German Banking Act (Kreditwesengesetz – KWG), to the German Securities Trading Act (Wertpapierhandelsgesetz – WpHG) and to the German Act Establishing the Federal Financial Supervisory Authority (Finanzdienstleistungsaufsichtsgesetz – FinDAG).

In addition, the European Commission has issued regulatory and implementing technical standards (Delegierte Verordnung (EU) 2017/571 (RTS 13) and Implementing Regulation (EU) 2017/1110 (ITS 3)).

From January 2022, ESMA will assume responsibility for the authorisation and supervision of certain data reporting services providers.

Applications for data reporting services providers

BaFin can accept or process, within its scope of responsibility, formal applications for authorisation and for an assessment of whether the authorisation conditions have been met.

Applications should be submitted using the forms included in Annex I and II of Implementing Regulation (EU) 2017/1110 (ITS 3), which have been translated into German by BaFin.

Information on changes to the membership of the management body should be submitted once authorisation has been granted using the form included in Annex III of Implementing Regulation (EU) 2017/1110 (ITS 3).

Applications that fall within BaFin’s scope of responsibility should be submitted in German.

Delegated Regulation (EU) 2017/571 (RTS 13) includes information on the documentation to be submitted with the application.

Applications that fall within BaFin’s scope of responsibility can be sent to the following addresses:

by e-mail: Datenbereitstellungsdienste@bafin.de

or by post:

Bundesanstalt für Finanzdienstleistungsaufsicht
Referat WA 45 – Datenbereitstellungsdienste
Marie-Curie-Straße 24-28
60439 Frankfurt am Main