On 31 January 2024, a statutory instrument (SI) – the Data Reporting Services Regulations 2024 – was published on legislation.gov.uk, along with an explanatory memorandum.

The SI, which is part of HM Treasury’s programme to deliver a Smarter Regulatory Framework for financial services, establishes a new legislative framework for the regulation of Data Reporting Services Providers (DRSPs), to allow relevant retained EU law to be repealed through a separate commencement SI.

DRSPs, a type of financial market infrastructure, are commercial entities that allow investment firms to fulfil their regulatory reporting obligations. They also ensure market data is accessible and supports effective price formation and best execution. The exercise to replace retained EU law includes restating, and in some cases modifying, the Data Reporting Services Regulations (DRSRs) 2017, which transposed parts of the EU’s second Markets in Financial Instruments Directive, as well as articles of other EU regulations. The SI also makes the necessary legislative changes to encourage the emergence of a consolidated tape in the UK.

The separate commencement SI will come into force concurrently with this SI and relevant FCA rules, to ensure there is no overlap or gap in the regulation of DRSPs. That commencement date will be the day on which the revocation of the DRSRs 2017 comes into force under section 1(1) of, and Schedule 1 to, the Financial Services and Markets Act 2023.