Act on Securities Trading (Securities Trading Act)

Part 5. Data reporting services

Chapter 14. Authorisation of and conditions for data reporting services providers

Section 14-1.Definitions of data reporting services

(1) ‘Data reporting services’ means:
1.operation of an approved publication arrangement,
2.operation of a consolidated tape provider,
3.operation of an approved reporting mechanism.
(2) ‘Approved publication arrangement’ means an undertaking authorised to publish trade reports on behalf of an investment firm under Articles 20 and 21 of the Markets in Financial Instruments Regulation.
(3) ‘Consolidated tape provider’ means an undertaking authorised to collect trade reports on financial instruments under Articles 6, 7, 10, 12, 13, 20 and 21 of the Markets in Financial Instruments Regulation from regulated markets, MTFs, OTFs and approved publication arrangements, and to consolidate them into a continuous electronic live data stream providing price and volume data for each financial instrument.
(4) ‘Approved reporting mechanism’ means an undertaking authorised to report information on transactions on behalf of investment firms to the supervisory authority or the European Securities and Markets Authority.
(5) ‘Data reporting services provider’ means an undertaking providing data reporting services on a professional basis.
(6) The ministry may make regulations to supplement this section.

Section 14-2.Authorisation to provide data reporting services

(1) Data reporting services provided on a professional basis by undertakings with their head office in Norway may only be provided under authorisation from Finanstilsynet. The authorisation shall specify which data reporting services the undertaking may provide.
(2) A market operator or an investment firm with authorisation to operate a trading venue may provide data reporting services without a separate authorisation if it is documented that the undertaking meets the requirements of this chapter. Which data reporting services the undertaking may provide shall be specified in the undertaking's authorisation.
(3) Authorisation may only be granted provided Finanstilsynet deems that the conditions for providing data reporting services under this chapter are met.
(4) An undertaking providing data reporting services shall organise its business such as to comply at all times with the provisions of this chapter and the conditions for authorisation. The undertaking shall inform Finanstilsynet of any material changes to the assumptions underlying authorisation.
(5) The ministry may make regulations to supplement this section.

Section 14-3.Application for authorisation

(1) An application for authorisation shall include all information necessary to demonstrate that the undertaking complies with the requirements of this chapter, including a programme of operations stating the services envisaged and the organisational structure of the undertaking.
(2) The decision regarding authorisation shall be communicated to the applicant as soon as possible and no later than six months after the submission of a complete application.
(3) The ministry may make regulations to supplement this section.

Section 14-4.Modification and withdrawal of authorisations

(1) Finanstilsynet may entirely or in part modify, set new conditions or withdraw authorisation to provide data reporting services if the undertaking:
1.fails to use the authorisation within twelve months, expressly renounces it or has provided no data reporting services for the preceding six months,
2.has obtained the authorisation by providing incorrect information or by other irregular means,
3.no longer meets the conditions under which the authorisation was granted,
4.has seriously or systematically infringed provisions laid down in or pursuant to law, thus giving reason to fear that continuation of the activity may harm the clients of the undertaking, the users of reported data, confidence in the securities market or the institutions operating in the market, or
5.the undertaking fails to comply with an order under section 19-7 or the Financial Supervision Act, section 4-1.
(2) The ministry may make regulations to supplement this section.

Section 14-5.Requirements for the management body of a data reporting services provider

(1) Board members, the general manager and others participating in the actual management of a data reporting services provider shall have sufficient qualifications and experience, be of good repute and otherwise not have displayed improper conduct giving reason to presume that their position or office will not be discharged in a satisfactory manner. Persons falling within the scope of the first sentence shall submit an ordinary criminal record certificate pursuant to section 40 of the Police Records Act.
(2) The provisions of section 9-10 subsection (2) and subsections (5) to (9) apply equally to data reporting services providers.
(3) The ministry may make regulations to supplement this section.

Section 14-6.Duties and responsibilities of the board of directors

The provisions of section 11-8 apply equally to the board of directors of a data reporting services provider.

Section 14-7.Organisational requirements for approved publication arrangements (APAs)

(1) An approved publication arrangement shall have adequate policies and arrangements to make public the information required under Articles 20 and 21 of the Markets in Financial Instruments Regulation as close to real time as is possible, and on reasonable commercial terms.
(2) The information under subsection (1) shall be made available free of charge 15 minutes after the APA has published it.
(3) Publication pursuant to subsection (1) shall take place efficiently and consistently and in a way that ensures fast access to the information.
(4) Publication shall be non-discriminatory and in a format that facilitates consolidation of the information with similar data from other sources.
(5) The information made public pursuant to subsection (1) shall include at least the following:
1.the identifier of the financial instrument,
2.the price at which the transaction was concluded,
3.the volume of the transaction,
4.the time of the transaction,
5.the time the transaction was reported,
6.the price notation of the transaction,
7.the code for the trading venue the transaction was executed on or, where the transaction was executed via a systematic internaliser, the code «SI» or otherwise the code «OTC», and
8.an indicator that the transaction was subject to specific conditions, if applicable.
(6) An APA shall have effective administrative arrangements to prevent conflicts of interest with its clients. An APA which is also a market operator or investment firm shall treat all information collected in a non-discriminatory manner and have suitable arrangements to separate different business functions.
(7) An APA shall have reliable security systems designed to guarantee security in information transmission, reduce the risk of data corruption and unlawful access, and prevent information leakage before publication. The approved publication arrangement shall maintain adequate resources and have back-up systems in place in order to offer and maintain its services at all times.
(8) An APA shall have systems that can effectively check trade reports for completeness, identify omissions and obvious errors and request retransmission of any erroneous reports.
(9) The ministry may make regulations to supplement this section.

Section 14-8.Organisational requirements for consolidated tape providers (CTPs)

(1) A consolidated tape provider shall have adequate policies and arrangements to collect the information made public pursuant to Articles 6 and 20 of the Markets in Financial Instruments Regulation, consolidate it into a continuous electronic data stream and make the information available to the public as close to real time as is technically possible and on reasonable commercial terms. The information shall be made available on a non-discriminatory basis and in formats that are easily accessible and utilisable for the market participants. The provisions of section 14-7 subsections (2) and (3) apply to information referred to in the first sentence.
(2) Subsection (1) applies equally to the information made public pursuant to Articles 10 and 21 of the Markets in Financial Instruments Regulation.
(3) The provisions of section 14-7 subsection (5) nos. 1 to 8 apply equally to the information made public pursuant to subsections (1) and (2). The information made public pursuant to subsection (1) shall also, where applicable, specify that a computer algorithm within the investment firm was responsible for the investment decision and the execution of the transaction. The information made public pursuant to subsection (1) shall also indicate which of the waivers the transaction was subject to if the obligation to make public the information referred to in Article 3(1) of the Markets in Financial Instruments Regulation was waived in accordance with point (a) or (b) of Article 4(1) of the said Regulation.
(4) The provisions of section 14-7 subsections (6) and (7) on the handling of conflicts of interest, security systems etc. apply equally to a CTP.
(5) A CTP shall ensure that the data provided is consolidated from all regulated markets, MTFs, OTFs and APAs, and encompasses the specified financial instruments.
(6) The ministry may make regulations to supplement this section.

Section 14-9.Organisational requirements for approved reporting mechanisms (ARMs)

(1) An ARM shall have adequate policies and arrangements to report the information required under Article 26 of the Markets in Financial Instruments Regulation as quickly as possible, and no later than the close of the first working day following the day on which the transaction took place. Such information shall be reported in accordance with the requirements of Article 26 of the Markets in Financial Instruments Regulation.
(2) The provisions of section 14-7 subsections (6) and (7) on the handling of conflicts of interest, security systems etc. apply equally to an ARM.
(3) An ARM shall have systems that can effectively check transaction reports for completeness and identify omissions and obvious errors caused by the investment firm. Where such errors or omissions occur, the ARM shall inform the investment firm accordingly and request retransmission of any erroneous reports.
(4) An ARM shall have systems to enable the approved reporting mechanism to detect errors or omissions caused by the ARM itself, and to correct and transmit, or retransmit as the case may be, correct and complete transaction reports to Finanstilsynet.
(5) The ministry may make regulations to supplement this section.

Section 14-10.Activities in Norway of undertakings with their head office in another EEA state

(1) Data reporting services may be provided in Norway by undertakings with their head office in another EEA state.
(2) Undertakings referred to in subsection (1) must have authorisation to provide such data reporting services and be subject to supervision in their home state.