We continue to prepare for a range of scenarios, including one in which the UK leaves the EU without a deal and without entering an implementation period.
MiFID II allows DRSPs established and authorised under MIFID in an EEA member state to provide data reporting services in the UK based on its home member state authorisation.
What will change post Brexit
EEA DRSPs authorised under MIFID will no longer be able to provide a service in the UK without authorisation from us.
The temporary authorisation regime will allow EEA DRSPs authorised under MIFID to provide a data reporting service in the UK for a limited period after exit day while enabling it to seek authorisation in the UK, on a permanent basis.
How the regime will work
EEA DRSPs authorised under MIFID currently operating in the UK, or EEA DRSPs authorised under MIFID seeking to operate in the UK for the first time, will need to let us know if they intend to provide a service to operate in the UK after exit day (29 March 2019).
This temporary authorisation will last for up to 1 year from exit day. We expect firms in the temporary regime to follow the requirements in the Data Reporting Services Regulations 2017 and relevant provisions of the FCA Handbook.
Connectivity to the FCA
EEA DRSPs authorised under MIFID providing a data reporting service in the UK that requires connecting to our system for the first time under the temporary authorisation regime, will need to on-board to our Market Data Processor (MDP) system and pay the applicable fee.
MDP conformance testing can take between 6-8 weeks subject to an entity’s onboarding requirements. Read our information on our MDP on-boarding process. Any questions in relation to the MDP on-boarding process should be sent to [email protected].
EEA DRSPs authorised under MIFID that have on-boarded to our MDP system currently providing one data reporting service in the UK, will need to conformance test if they are going to provide an additional data reporting service and submit a new market data type. For example, this would include an EEA DRSP that is providing the service of an approved reporting mechanism (ARM), and now wishes to provide the service of an approved publication arrangement (APA), where it is authorised to do so by its home state regulator.
The notification process
EEA DRSPs authorised under MIFID will need to notify us no later than 30 working days before exit day, that they wish to use the temporary authorisations regime. The notification form will be made available on our website and we expect to open the notification window in early 2019.
Details of EEA DRSPs authorised under MIFID with a temporary authorisation will be published on our DRSP webpage.
The Treasury intends to lay the Statutory Instrument (SI) establishing the temporary regime before Parliament in the Autumn. If, as expected, the UK enters an implementation period after Brexit, the changes made in the SI will not take effect on 29 March 2019.
We will provide further information later in the year as to how the regime will operate.