delete The Data Reporting Services Regulations 2024
The Data Reporting Services Regulations 2024 establish a UK regulatory framework for data reporting services (APAs, ARMs, and CTPs) that investment firms use to report trade data to the FCA under MiFID II requirements. The regulations set authorization requirements, maintain an FCA register, govern tender processes for CTP services (awarding exclusive 5-year contracts extendable to 7 years), and apply FSMA 2000 enforcement powers to data reporting service providers.
The CTP tender process creates statutory monopolies preventing competition during contract periods — regulation 6(6) prohibits any person other than the contract holder from providing that CTP service for the duration. This anti-competitive arrangement, combined with authorization barriers that favor incumbent players, increases costs for data reporting services without evidence that monopoly provision achieves better outcomes than competitive markets would. Financial transaction reporting is valuable but the specific mechanism of state-selected exclusive providers is not the only or most efficient means to achieve transparency — a competitive framework could deliver the same regulatory goals at lower cost while fostering innovation and keeping the City competitive with New York, Singapore, and Dubai.