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For this reason, Deutsche Börse wants to register with BaFin as an ARM and an APA and offer services throughout the European Union via EU passporting. ARM, which stands for Approved Reporting Mechanism, is a status required for transaction reporting to regulators such as BaFin. APA stands for Approved Publication Arrangement, a regime via which data relevant to the public is reported. Hub customers, Groß explained, are expected to be market participants with reporting obligations on both sell and buy side, investment companies, systemic internalisers, as well as companies. It is also aimed at trading venues. These can be regulated markets, multilateral trading facilities (MTFs), and organised trading facilities (OTFs), the new platform format created by MiFID II. The hub will also include Regis-TR, the European transaction register co-operated by Deutsche Börse subsidiary Clearstream and Iberclear. Groß stressed that the impact the UK's pending exit from the European Union, or Brexit, will have on that country's NCA, the Financial Conduct Authority (FCA), is not yet clear. “However, it is clear that Deutsche Börse's regulatory reporting hub is a European solution.” This offering also extends to non-EU countries, such as Switzerland, and entities with reporting obligations under its Financial Markets Infrastructure Act (FinfraG). Consequently, the hub could even serve UK customers after Brexit.
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