On 28 November 2023, a draft statutory instrument (SI) – the Data Reporting Services Regulations 2023 – was published on legislation.gov.uk, along with an explanatory memorandum. The draft 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framework for the regulation of Data Reporting Services Providers (DRSPs), to allow relevant retained EU law to be repealed through a separate commencement SI.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 through the draft SI includes restating, and in some cases modifying, the Data Reporting Services Regulation 2017, which transposed parts of the EU’s second Markets in Financial Instruments Directive, as well as articles of other EU regulations. The draft SI also makes the necessary legislative changes to encourage the emergence of a consolidated tape in the UK.