AI Summary of Article 52 Reports and review
By 3 March 2020 the Commission, after consulting ESMA, is required to report to the European Parliament and the Council on the practical impact of transparency obligations under Articles 3–13, notably the Article 5 volume cap and Article 4 waivers, including effects on trading costs, price formation, small and mid‑cap shares, and possible sanctioning mechanisms. The Commission must also report on the functioning of Article 26 transaction reports (with the option to propose ESMA‑appointed systems), measures to reduce information asymmetries including the feasibility of a European best bid and offer consolidated quotes system, and progress in moving standardised OTC derivatives to exchanges or electronic platforms (Articles 25 and 28).
By 3 July 2020 the Commission must report, after consulting ESMA, on prices for pre‑ and post‑trade transparency data, interoperability provisions (Article 36 and EMIR Article 8) and the application of Articles 35–36 and EMIR Articles 7–8; by 3 July 2022 a report on Article 37 is due. ESMA obligations include a 30 June 2026 assessment of consolidated tape demand and effects, a three‑year post‑CTP authorisation Commission report on CTP performance, a 29 March 2025 Commission assessment on extending Article 26 to AIFMs and management companies, and a 29 March 2028 ESMA assessment of the Article 5 volume cap. The Commission is empowered to adopt delegated acts to amend the Regulation, extend the Article 35(5) transitional period by up to 30 months, and specify measures on core market data provision and CTP selection and continuation arrangements.
Article 52 Reports and review
1. By 3 March 2020, the Commission shall, after consulting ESMA, submit a report to the European Parliament and to the Council on the impact in practice of the transparency obligations established pursuant to Articles 3 to 13, in particular on the impact of the volume cap mechanism described in Article 5, including on the cost of trading for eligible counterparties and professional clients and on trading of shares of small and mid-cap companies, and its effectiveness in ensuring that the use of the relevant waivers does not harm price formation and how any appropriate mechanism for imposing sanctions for infringements of the volume cap might operate, and on the application and continued appropriateness of the waivers to pre-trade transparency obligations established pursuant to Article 4(2) and (3) and Article 9(2) to (5).
2. The report referred to in paragraph 1 shall include the impact on European equity markets of the use of the waiver under Article 4(1)(a) and (b)(i) and the volume cap mechanism under Article 5, with particular reference to:
(a) the level and trend of non-lit order book trading within the Union since the introduction of this Regulation;
(b) the impact on the pre-trade transparent quoted spreads;