EMIR Data Quality Review


The Review

Under the European Market Infrastructure Regulation ("EMIR"), counterparties established in the EU must report details of any derivative contract they have concluded, modified or terminated, to registered trade repositories ("TRs") supervised by the European Securities and Markets Authority ("ESMA"). The reporting obligation applies to all counterparties, including non-financial counterparties, and to all derivative transactions (OTC and exchange-traded, cleared and non-cleared) of all asset classes. One of the objectives of EMIR is to reduce and identify systemic and counterparty risk and help prevent future financial system collapse by providing regulators with high quality data.

On 17 October 2019 ESMA published a report (the "Report") on the results of a peer review (the "Review") it conducted into the supervisory actions of six national competent authorities ("NCAs") regarding their approaches to enhancing the quality of data reported under EMIR. The Review complements ESMA's Data Quality Action Plan - a voluntary self-assessment exercise undertaken by NCAs and ESMA - in order to further improve the quality and usability of derivatives data. The review period ran from 1 January 2017 to 31 December 2018.


The Review examined six NCAs who supervise important derivative markets in the European Union ("EU"), namely: i) the Central Bank of Ireland (the "CBI"); ii) the Authority for the Financial Markets (AFM) in the Netherlands; iii) the Authority of the Financial Market (AMF) in France; iv) the Federal Financial Supervisory Authority (BaFin) in Germany; v) the Cypriot Securities and Exchange Commission (CySEC); and vi) the Financial Conduct Authority (FCA) in the UK.

The Review assessed how the six NCAs supervised data quality under EMIR in the following areas: a) NCAs' supervisory approach to EMIR data quality; b) integration of EMIR data within the NCA's overall supervisory approach; and c) NCAs' access, assessment and analysis of EMIR data quality.


Overall, the CBI was considered to be one of the strongest performers amongst the NCAs examined. In all areas, the CBI broadly or fully met, or exceeded, the expectations set by the Review.

The publication by the CBI of the February 2019 industry letter on trade reporting, which we wrote about at the time, is commended as a "good practice" in the Report. The Report also notes that the CBI uses EMIR data as part of its approach to regulating other activities (for...

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