The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, published today the annual assessment of the derogation criteria for data reporting services providers (DRSPs). Two entities currently supervised at national level will come under ESMA’s direct supervision, as they do not fulfil the derogation criteria for the second consecutive year.
Based on 2023 data these two entities are Wiener Börse AG (operating an Approved Publication Arrangement (APA), domiciled in Austria) and KELER Központi Értéktár Zrt (operating an Approved Reporting Mechanism (ARM) and an APA, domiciled in Hungary). Both entities will be subject to ESMA supervision from 1 June 2025.
DRSPs (APAs and ARMs) are exempt from ESMA supervision when their activities are of limited relevance for the internal market. This is measured by the number of Member States where clients of the DRSP are established and the market share of the DRSP in terms of number and volume of trades (APAs) and transactions (ARMs) in the EU. This assessment is conducted yearly and determines whether there is a change in supervisory responsibility.
Next Steps
Following the notification about the outcome of the assessment of the derogation criteria, ESMA will engage closely with the two entities subject to a change of supervisor and with their current supervisors, to initiate the handover of responsibilities.
Background
The ESAs’ Review Regulation has transferred the authorisation and supervision of DRSPs from national competent authorities to ESMA, except for those DRSPs subject to a derogation.
The criteria to identify those DRSPs that are supervised by NCAs by way of derogation are specified in a Delegated Act (DA). According to the DA, ESMA is mandated to reassess the relevance for the internal market of the activities of an APA or an ARM every year. In the case that, based on the assessment, the thresholds for derogation or application of ESMA supervision are no longer met in two consecutive years, the change into application or derogation of ESMA supervision takes effect on 1 June in the following year.
