Recital 78

(78) The monitoring of order data is crucial for the surveillance of market activity. Competent authorities should therefore have easy access to the data that they need for their supervisory activity. Some of those data concern instruments that are traded in a trading venue located in another Member State. To enhance the effectiveness of supervision, competent authorities should set up a mechanism to exchange order data on an ongoing basis. To ensure that the scope of that mechanism for exchanging order data is proportionate to its use, only competent authorities that supervise markets that have a high level of cross-border activity should be obliged to participate in that mechanism. Member States whose competent authorities would have an interest in taking part in the mechanism on a voluntary basis should comply with the same provisions and contribute to the funding of the mechanism. ESMA has demonstrated its expertise in setting up data exchange hubs, such as the exchange of transaction reporting data through the proven implementation of the Transaction Reporting Exchange Mechanism (TREM) or through the Single Access Point to EMIR Transaction Data through the implementation of the Trade Reporting and Compliance Engine(TRACE). Therefore, participating competent authorities should be able to set up the new mechanism to exchange order data by delegating the project development to ESMA. The list of trading venues that have a significant cross-border dimension should be determined by the Commission in delegated acts by taking into account, for each class of financial instruments, at least the trading volume on the trading venue as well as the trading volume on that trading venue in financial instruments for which the competent authority of the most relevant market differs from the competent authority of the trading venue. In order to provide legal certainty and not to delay the implementation of the mechanism, the criteria for the determination of trading venues with a significant cross-border dimension should be set in this Regulation with specific thresholds set for shares. To ensure that the criteria remain workable and flexible enough to take into account the developments of financial markets and the need for effective supervision, the Commission should be empowered to amend and update over time the list of designated trading venues by means of a delegated act, while ensuring proportionality, and to ask ESMA for an opinion. Furthermore, that mechanism for exchanging order data should at first only concern shares, before being extended to bonds and futures, considering the relevance of those financial instruments in terms of both cross-border trading and market manipulation. However, to ensure that such mechanism for exchanging order data reflects developments in financial markets as well as the capacity of competent authorities to process new data, the Commission should be empowered to further broaden the scope of instruments whose order data can be exchanged through that mechanism and potentially postpone the inclusion of bonds and futures, taking into account ESMA’s analysis of the deployment of the mechanism, particularly in terms of costs.

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Source: EUR-Lex (Cellar) · retrieved 2026-10-17 · Text as adopted (Official Journal); later amendments are not incorporated in this text.