1. For the purposes of redistributing part of the revenue generated by the consolidated tape to data contributors that meet one or more of the criteria laid down in Article 27h(6) of Regulation (EU) No 600/2014, the CTP for shares and ETFs shall determine:
(a)
the amount of the revenue to be redistributed, based on the total revenue generated by the consolidated tape over the calculation window, as specified by the CTP; and
(b)
the list of regulated markets, MTFs, and SME growth markets that transmitted input data over the assessment period, either for the full period or for part of it (the ‘eligible data contributors’).
2. After having determined the amount of revenue to be redistributed and the list of eligible data contributors in accordance with paragraph 1, the CTP for shares and ETFs shall perform the calculations set out in Articles 18 to 21. The CTP for shares and ETFs shall perform such calculations at least on an annual basis and, in any case, before the twentieth day of the month following the calculation window, using the trades recorded by each data contributor over the assessment period. The CTP for shares and ETFs shall apply the resulting percentages of such calculations retroactively over the latest calculation window.
3. For the purposes of paragraphs 1 and 2, the calculation window shall correspond to each individual period over which part of the revenue of the consolidated tape is redistributed.
4. For the purposes of paragraph 2, the assessment period shall correspond to the 12 months over which the relevant trading volume to be multiplied by each individual weighting is considered.
Methodology for calculating the amount of the revenue to be redistributed to eligible data contributors meeting the criterion under Article 27h(6), point (a), of Regulation (EU) No 600/2014
1. To calculate the amount of the revenue to be redistributed to eligible data contributors that meet the criterion under Article 27h(6), point (a), of Regulation (EU) No 600/2014, the CTP for shares and ETFs shall determine the total annual trading volume generated in shares for each eligible data contributor that is a regulated market or an SME growth market by summing each transaction record received by that data contributor.
2. The CTP for shares and ETFs shall determine the total annual trading volume in shares in the Union by summing all transaction records received by all data contributors.
3. For the purposes of the calculations referred to in paragraphs 1 and 2, transactions shall be single counted.
4. To determine whether an eligible data contributor meets the criterion laid down in Article 27h(6), point (a), of Regulation (EU) No 600/2014, the CTP for shares and ETFs shall divide the amount determined under paragraph 1 by the amount determined under paragraph 2 for each regulated market and SME growth market, identified by operating Market Identifier Code (‘MIC’), as specified in ISO 10383.
5. For each eligible data contributor meeting the criterion laid down in Article 27h(6), point (a), of Regulation (EU) No 600/2014, identified by segment MIC, as specified in ISO 10383, or by operating MIC, whenever there is no segment MIC, the CTP for shares and ETFs shall multiply the relevant trading volume generated by that MIC, as determined under paragraph 1, by a weighting of 4,5.
Methodology for calculating the amount of revenues to be redistributed to eligible data contributors meeting the criterion under Article 27h(6), point (b), of Regulation (EU) No 600/2014
1. To determine whether an eligible data contributor meets the criterion laid down in Article 27h(6), point (b), of Regulation (EU) No 600/2014, the CTP for shares and ETFs shall, for each eligible data contributor, assess whether such data contributor provided initial admission to trading of shares or ETFs on 27 March 2019 or thereafter. That assessment shall be based on the information published by ESMA in accordance with Article 7(6) of Commission Delegated Regulation (EU) 2017/585 ( 9 ) .
The CTP for shares and ETFs shall determine:
(a)
for each eligible data contributor meeting the criterion laid down in Article 27h(6), point (a), of Regulation (EU) No 600/2014, the total annual trading volume generated in shares and ETFs, by summing each transaction record received by that data contributor;
(b)
for each eligible data contributor not meeting the criterion laid down in Article 27h(6), point (a), of Regulation (EU) No 600/2014, the total annual trading volume pertaining to the shares and ETFs that were initially admitted to trading on 27 March 2019 or thereafter, by summing each relevant transaction record received by that data contributor.
For the purposes of the calculations referred to in points (a) and (b), transactions shall be single counted.
2. For each eligible data contributor meeting the criterion laid down in Article 27h(6), point (b), of Regulation (EU) No 600/2014, identified by segment MIC, as specified in ISO 10383, or by operating MIC, whenever there is no segment MIC, the CTP for shares and ETFs shall multiply the relevant trading volume generated by that MIC, as determined under paragraph 1, second subparagraph, by a weighting of 4,0.
Methodology for calculating the amount of revenues to be redistributed to eligible data contributors meeting the criterion under Article 27h(6), point (c), of Regulation (EU) No 600/2014
1. To determine whether an eligible data contributor meets the criterion laid down in Article 27h(6), point (c), of Regulation (EU) No 600/2014, the CTP for shares and ETFs shall, for each eligible data contributor, determine the total annual pre-trade transparent trading volume generated in shares and ETFs.
For the purposes of the calculation referred to in the first subparagraph, the CTP for shares and ETFs shall include all transaction records received from the eligible data contributors which are not flagged as negotiated transactions subject to conditions other than the current market price (‘PRIC flag’), reference price transactions (‘RFPT flag’), negotiated transactions in liquid financial instruments (‘NLIQ flag’), negotiated transactions in illiquid financial instruments (‘OILQ flag’) as set out in Table 4 of Annex I to Delegated Regulation (EU) 2017/587, or as transactions subject to the pre-trade large in scale waiver as set out in Article 6(1), point (b). Transactions shall in all cases be single counted.
2. For each eligible data contributor meeting the criterion laid down in Article 27h(6), point (c), of Regulation (EU) No 600/2014, identified by segment MIC, as specified in ISO 10383, or by operating MIC whenever there is no segment MIC, the CTP for shares and ETFs shall multiply the relevant trading volume generated by that MIC, as determined under paragraph 1 of this Article, by a weighting of 1,5.
Methodology for determining the amount of revenue to be redistributed
1. For each eligible data contributor, the CTP for shares and ETFs shall sum up the results of the multiplications of the weightings by the trading volumes, as set out in Articles 18 to 20.
2. The CTP for shares and ETFs shall determine the total sum of the results of the calculations under paragraph 1 for all eligible data contributors.
3. The CTP for shares and ETFs shall divide the sum per data contributor, as set out in paragraph 1, by the total sum, as set out in paragraph 2. The resulting percentages for each data contributor shall be multiplied by the total amount of the revenue to be redistributed.
Criteria for the temporary suspension of the participation in the revenue redistribution scheme
1. When deciding whether to suspend the participation of a data contributor in the revenue redistribution scheme as laid down in Article 27h(8), point (c), of Regulation (EU) No 600/2014, the CTP for shares and ETFs shall take into account whether any of the following criteria is met:
(a)
for three consecutive days, the data contributor has failed to submit trade reports or order reports or has submitted more than three trade reports or order reports later than as close to real time as is technically possible, as laid down in Article 3, and those trade reports or order reports account for at least a volume of transactions or orders that in a percentage is not lower than 10 % of the total volume of transactions or orders submitted in a single day;
(b)
for three consecutive days, the data contributor has submitted more than three trade reports or order reports that are incomplete or contain potentially erroneous data, as laid down in Article 10, and those trade reports or order reports account for at least a volume of transactions or orders that in percentage is not lower than 10 % of the total volume of transactions or orders submitted in a single day;
(c)
the data contributor no longer meets the minimum requirements for the quality of the transmission protocols set out in Article 2;
(d)
the data contributor no longer meets the requirements on the level of accuracy to which business clocks are to be synchronised, as set out in Chapter III.
2. The CTP for shares and ETFs may decide not to suspend the participation of a data contributor in the revenue redistribution scheme where the situations set out in paragraph 1 occurred due to circumstances that were out of the ordinary, unavoidable, or unexpected.
Procedure for the temporary suspension of the participation in the revenue redistribution scheme
1. Where the CTP for shares and ETFs has found a repeated and serious breach by a data contributor of the criteria set out in Article 22(1), points (a) and (b), it shall inform the data contributor thereof as soon as possible and, in any case, within two business days from the moment it has found the repeated and serious breach. In the notification to the data contributor, the CTP shall:
(a)
identify the trade reports or order reports in relation to which the data contributor is deemed in breach and the number of days for which the revenue redistribution may be suspended;
(b)
provide information to the data contributor supporting its assessment.
Within one week from the notification referred to in the first subparagraph, the data contributor may provide additional information to the CTP seeking to prove that the data requirements were not breached, or that an exceptional circumstance, as referred to in Article 22(2), occurred, and request that the CTP reviews its assessment based on the additional information.
The CTP shall review its assessment taking into account the additional information provided by the data contributor and, where it considers the information not to be complete, set a deadline by which the data contributor is to provide additional information.
2. On the last day of the period in relation to which the revenue is redistributed, the CTP shall draw up its final assessment on whether the criteria for the temporary suspension of the participation of a data contributor in the revenue redistribution scheme, in accordance with Article 22(1), are met.
The CTP shall inform the data contributor of its final assessment within two business days after the last day of the period in relation to which revenue is redistributed. The CTP shall inform the data contributor of the reasons for its final assessment, including the data requirements deemed in breach, and specify the amount of revenue that may be retained.
Within one week from receipt of the information referred to in the second subparagraph of this paragraph, the data contributor may provide additional information to the CTP proving that the data requirements referred to in Article 22a, 22b and 22c of Regulation (EU) No 600/2014 were not breached, or that an exceptional circumstance, as referred to in Article 22(2), occurred, and request that the CTP reviews its final assessment based on the additional information.
The CTP shall review its final assessment taking into account the additional information provided by the data contributor and, where it considers the information not to be complete, set a deadline by which the data contributor is to provide additional information.
3. The CTP shall inform the data contributor concerned of its final decision on the suspension of the participation in the revenue redistribution scheme no later than two weeks after informing the data contributor of the final assessment referred to in the second subparagraph of paragraph 2.
Where the CTP takes a final decision to suspend a data contributor from the revenue redistribution scheme it may redistribute the retained revenue to the other eligible data contributors in the redistribution window following that decision.
Conditions for the resumption of revenue redistribution and for the provision of revenue retained plus interest
1. Where the CTP for shares and ETFs finds, on the basis of the additional information provided by the data contributor in accordance with Article 23(1), second subparagraph, and Article 23(2), third subparagraph, that the data requirements referred to in Articles 22a, 22b and 22c of Regulation (EU) No 600/2014 have not been breached, it shall redistribute the revenue retained, with interest, no later than two weeks after the final decision referred to in Article 23(3).
2. For the purposes of the calculation of the interest referred to in paragraph 1, the CTP shall take into account the average rate of the European Central Bank’s deposit facility, or where the CTP is established in a Member State whose currency is not the euro, the official interest rate for overnight credit charged by the central bank of the Member State where the CTP is established, over the period of the suspension of the revenue redistribution scheme.
