Data Reporting Services (Amendment) Regulations, 2022

Suppliment tal-Gazzetta tal-Gvern ta’ Malta Nru. 20,855, 10 ta’ Mejju, 2022 B 749

L.N. 136 of 2022

FINANCIAL MARKETS ACT

(CAP. 345)

INVESTMENT SERVICES ACT

(CAP. 370)

Data Reporting Services (Amendment) Regulations, 2022

IN EXERCISE of the powers conferred by article 49 of the

Financial Markets Act and article 12 of the Investment Services Act,

the Minister responsible for the regulation of Financial Services,

acting on the advice of the Malta Financial Services Authority, has

made the following regulations: -

(1) The title of these regulations is the Data Reporting Citation and

Services (Amendment) Regulations, 2022, and these Regulations shall scope.

be read and construed as one with the Data Reporting Services S.L.

Regulations, hereinafter referred to as "the principal regulations".

(2)

The scope of these regulations is to

(a) transpose Article 1(4) of Directive (EU) 2019/2177 of

the European Parliament and of the Council of 18 December

2019 amending Directive 2009/138/EC on the taking-up and

pursuit of the business of Insurance and Reinsurance (Solvency

II), Directive 2014/65/EU on markets in financial instruments

and Directive (EU) 2015/849 on the prevention of the use of the

financial system for the purposes of money-laundering or

terrorist financing; and

(b) implement in part Article 4 of Regulation (EU) 2019/

2175 of the European Parliament and of the Council of 18

December 2019 amending Regulation (EU) No 1093/2010

establishing a European Supervisory Authority (European

Banking Authority), Regulation (EU) No 1094/2010 establishing

a European Supervisory Authority (European Insurance and

Occupational Pensions Authority), Regulation (EU) No 1095/

2010 establishing a European Supervisory Authority (European

Securities and Markets Authority), Regulation (EU) No 600/

2014 on markets in financial instruments, Regulation (EU) 2016/

1011 on indices used as benchmarks in financial instruments and

financial contracts or to measure the performance of investment

funds, and Regulation (EU) 2015/847 on information

accompanying transfers of funds.

Sub-regulation 2 of regulation 1 of the principal regulations

shall be substituted by the following

"(2) The purpose of these regulations is to implement

points 34, 35, 36, 36a of Article 2(1) and Article 27c of MiFIR

and Article 22 of MiFID.

Sub-regulation 1 of regulation 2 of the principal regulation

shall be amended as follows

(a) the definition "APA" shall be substituted by the

following

""APA" means a person authorised under MiFIR to

provide the service of publishing trade reports on behalf of

investment firms pursuant to Articles 20 and 21 of

MiFIR;";

(b)

the definition "ARM" shall be substituted as follows

" "approved reporting mechanism" or "ARM" means

a person authorised under MiFIR to provide the service of

reporting details of transactions to competent authorities or

to ESMA on behalf of investment firms;";

(c) the definition "CTP" shall be substituted by the

following

""consolidated tape provider" or "CTP" means a

person authorised under MiFIR to provide the service of

collecting trade reports for financial instruments listed in

Articles 6, 7, 10, 12 and 13, 20 and 21 of MiFIR from

regulated markets, MTFs, OTFs and APAs and

consolidating them into a continuous electronic live data

stream providing price and volume data per financial

instrument;";

(d) the definition of "data reporting service provider"

shall be substituted by the following

" "data reporting services provider" means an APA,

CTP or ARM and a person referred to in Article 27b(2) of

MiFIR; and

(e) the definitions of "data reporting services", "home

member state", "management body" and "systematic

internaliser" shall be deleted.

The words "Part I", "Part II", "Part III", "Part IV" and "Part Amends

generally the

V" of the principal regulations shall be deleted.

principal

regulations.

Immediately after regulation 2 of the principal regulations, Adds regulation

2A to the

there shall be added the following new regulation

principal

regulations.

2A. (1) The

Malta

Financial

Services

Authority established by the Malta Financial Services

Authority Act shall be the designated competent

authority in Malta responsible for the authorisation and

supervision of APAs and ARMs which have a

derogation in accordance with Article 2(3) of MiFIR.

(2) The competent authority shall exercise all

the functions, obligations and powers and shall satisfy

all the requirements imposed on competent authorities

by MiFIR and MIFID.

(3) Without prejudice to sub-regulation (2), the

competent authority may, for the better implementation

of MiFIR, exercise any of the powers assigned to it

under the Act in relation to persons acting as data

reporting services providers.".

Regulation 3 of the principal regulations shall be Substitutes

regulation 3 of

substituted by the following

the principal

regulations.

3. (1) No person shall operate an APA, a

CTP or an ARM in or from Malta, or hold itself out to

be or provide the services of an APA, a CTP or an

ARM, unless such person has received prior

authorisation in accordance with Article 27b of MiFIR.

(2) A person seeking to operate an APA or an

ARM which has a derogation in accordance with

Article 2(3) of MiFIR in or from Malta shall require

prior authorisation for this purpose. The authorisation

shall be issued by the competent authority in terms of

these regulations and Article 27b of MiFIR.

(3) An application for authorisation to operate

an APA or an ARM which has a derogation in

accordance with Article 2(3) of MiFIR in terms of sub-

regulation (2) shall be made to the competent authority

in writing and shall be accompanied by such documents

as the competent authority may specify.

(4) An APA or an ARM which has a derogation

in accordance with Article 2(3) of MiFIR shall be

authorised by the competent authority in terms of sub-

regulation (2) where

(a) the data reporting services provider is

a legal person established in the Union; and

(b) the data reporting services provider

meets the requirements laid down in Title IVa of

MiFIR

Provided that the competent authority

shall not issue an authorisation unless it is

satisfied that the applicant is in a position to

comply with any conditions for authorisation set

out in Title IVa of MiFIR which the competent

authority may deem fit to impose.

(5) Notwithstanding the provisions of sub-

regulation (2), the competent authority shall allow an

investment firm or a market operator operating a

trading venue to operate the data reporting services of

an APA or an ARM which has a derogation in

accordance with Article 2(3) of MiFIR subject to the

prior verification of their compliance with the

provisions of Title IVa of MiFIR. This service shall be

included in their licence.

Regulation 4 of the principal regulations shall be

substituted by the following

4. The competent authority may withdraw the

authorisation of an APA or an ARM with a derogation

in accordance with Article 2(3) of MIFIR, where such

APA or ARM

(a) does not make use of the authorisation

within twelve months from the date when

authorisation was granted, expressly renounces

the authorisation or has provided no services for

the preceding six months;

(b) obtained the authorisation by making

false statements or by any other irregular means;

(c) no longer meets the conditions under

which it was authorised; or

(d) has seriously and systematically

infringed any applicable provision set out in

MiFIR.".

Regulation 5 of the principal regulations shall be Substitutes

substituted by the following

5. For the better carrying out of the provisions

competent court to

of MiFIR and of these regulations, the competent

authority may, from time to time, issue and publish

rules which shall be binding on all persons acting as

data reporting services providers. Such rules may lay

down additional requirements and conditions in

relation to these matters as the competent authority

may consider appropriate, including

(a) the operation of Title VIa of MiFIR,

any provision dealing with data reporting services

providers in MiFID, or of these regulations;

(b) any matter relating to the functions,

obligations and powers of the competent authority

under Title VIa of MiFIR and any provision

dealing with data reporting services providers in

MiFID; and

(c) any other matter arising in connection

with data reporting services providers.".

Regulation 6 of the principal regulations shall be Substitutes

substituted by the following

6. The provisions of Title IVa of MiFIR shall

"Applicability

of Title IVa of

apply to persons acting as data reporting services

MiFIR to data

providers in or from Malta and such persons shall exercise

all the obligations and satisfy all the requirements

imposed on such persons by the said provisions of Title

IVa of MiFIR.".

Regulation 7 of the principal regulations shall be Substitutes

substituted by the following

7. Upon the coming into force of Title IVa of

prevail in case

MiFIR, these regulations shall be construed and applied in

inconsistency.

accordance therewith and, insofar as the provisions of

these regulations are inconsistent with the provisions of

the said MiFIR, the provisions of MiFIR shall prevail and

the provisions of these regulations shall not apply to the

extent of the inconsistency.".

Regulations 8, 9, 10 and 11 of the principal regulations and

Deletes

regulations 8, 9,

their respective titles "Conditions for APAs", "Conditions for CTPs",

10, and 11 and

"Conditions for ARMs" and "Administrative Penalties, other measures

their respective

titles from the

and Appeals" shall be deleted.

principal

regulations.

€0.27