On 20 November 2020, the European Securities and Markets Authority (ESMA) launched a consultation seeking stakeholder input on proposals for technical advice to the European Commission on delegated acts relating to the criteria to identify those authorised reporting mechanisms (ARMs) and approved publication arrangements (APAs) that, by way of derogation from MiFIR, on account of their limited relevance for the internal market, are subject to authorisation and supervision by a Member State competent authority.
The aim of the consultation is to provide technical advice to the Commission on such derogation criteria, in particular on:
- How to determine if the APA or ARM services are provided to investment firms authorised in one Member State.
- How to calculate the number of trade reports or transactions.
- How to determine whether the ARM or APA is part of a group of financial market participants operating cross-border; as well as other aspects relevant for the determination whether the ARM or APA has a limited relevance for the internal market.
The deadline for comments on the consultation is 4 January 2021. ESMA will consider the feedback it receives to the consultation and expects to publish a final report and submission of the technical advice to the Commission in Q1 2021.