ESMA shows EU regulators’ supervisory practices regarding EMIR data quality is improving
ESMA Report dated 11 April 2024
Level of significance of change
Medium
Main points
- Follow-up report to the 2019 peer review into supervisory actions (the “Follow-up Report”) aimed at enhancing the quality of data reported under EMIR.
- Supervisory practices have improved significantly.
- Five NCAs (CY, DE, FR, IE, NL) took specific measures such as:
- Rolling out data quality dashboards.
- Undertaking more granular data quality checks.
- Increasingly using EMIR data as part of day-to-day supervision.
The Follow-up Report also discussed recent enforcement action taken by 3 NCAs (DE, FR, IE) against counterparties (CPs) due to the poor data quality and to further promote compliances across CPs.
How does this change my reporting?
There is no impact on trade and transaction reporting, however it provides important points for firms to review to ensure they are meeting the expectations of regulators in this area.
What do I need to do?
- Ensure data quality remains a primary focus especially given the NCA Enforcement Action (as described above). This is a reminder for firms to not be complacent with their data quality.
- Make sure you are conducting regular reconciliations of your reporting – TRAction clients are provided with guidance to assist with this process for internal processes. A third-party reconciliation process is also conducted for TRAction’s EMIR clients.
- Conducting data quality reviews – TRAction clients receive a report outlining the key points of their data to assist firms with checking key fields in their reporting.
- Firms are expected to take ownership of the data they report. Consider increasing the use of data internally for allow informed, data driven choices and risk management.
