On 24 January 2025, the European Securities and Markets Authority (ESMA) issued a new web page reminding market participants that responsibility for reporting over-the-counter (OTC) transactions will shift from systematic internalisers (SIs) to the new Designated Publishing Entities (DPEs) from 3 February 2025.
The DPE regime allows Member State competent authorities to grant the status of DPE to investment firms. DPEs, when they are party to a transaction, will need to make these transactions public through an approved publication arrangement.
Discontinuation of the SI quarterly calculations
ESMA also states that it will no longer be necessary for it to perform SI calculations from September 2025 and therefore it has decided to discontinue the voluntary publication of quarterly SI calculations data already now. This action will also reduce the administrative burden for investment firms.
Consequently, the mandatory SI regime will no longer apply from 1 February 2025, and investment firms will not need to perform the SI-test. However, investment firms can continue to opt into the SI-regime.