Operational constraints see ESMA pause SI data reporting for non-equity instruments in August

Regulator has confirmed that the mandatory reporting regime will not apply from 15 August to 14 November; investment managers will also not need to perform SI tests.

ESMA has made temporary plans to pause mandatory data reporting requirements for non-equity instruments other than bonds on systematic internalisers (SIs) in August.

The regulator has been gathering data that was otherwise not easily available, on a voluntary basis, on behalf of market participants; in order to ensure they meet their transparency and best execution obligations.

However, due to operational constraints the regulator has been unable to perform its scheduled calculations and has therefore announced its intention to pause the mandatory regime between 15 August and 14 November, 2022. Within this period, ESMA confirmed that investment management firms would not be required to run SI tests; however, they can opt into the regime in the interim period if they wish.

Calculations will resume on 1 November  based on an observation period running from 1 April  to 30 September. Investment managers will be required to re-comply with obligations from 15 August.

Consolidated tape data reporting has also been paused. ESMA confirmed it will resume at its next publication on 1 February next year, based on an observation period from 1 July this year until 31 December.