Regulatory Alerts2021-12-17
Added · Updated
Commission Delegated Regulation (EU) 2022/466 specifying criteria for derogation of ESMA supervision for APAs and ARMs
The European Commission specifies criteria for Approved Publication Arrangements (APAs) and Approved Reporting Mechanisms (ARMs) to remain under national supervision rather than ESMA supervision. Derogation applies only if the entity serves investment firms in a maximum of three Member States, with at least 50% authorized in the same state as the APA or ARM. Additionally, the APA's reported trades and volume must not exceed 0.5% of the total for both equity and non-equity instruments, and the ARM's reported transactions must not exceed 0.5% of the total. These thresholds are reassessed annually by ESMA, with changes to supervision status taking effect on 1 June of the following year if criteria are no longer met for two consecutive years.