What have we learned from ESMA’s recent peer review of EMIR’s derivative data?

Last week, the European Securities and Markets Authority (ESMA) published its findings for the peer review it conducted into the supervisory actions of six National Competent Authorities (NCAs). More specifically, this peer review studied their approach to enhance the quality of derivative data reported under the European Market Infrastructure Regulation (EMIR).

ESMA expects NCAs to integrate an assessment and analysis of EMIR data quality into their overall supervisory approach. Specifically, NCAs are expected to: (i) develop an appropriate supervisory model based on their jurisdiction’s size, scale and complexity; (ii) ensure policies and procedures are in place to monitor EMIR data quality; (iii) take actions where applicable; (iv) be proactive in their supervisory approach, and; (v) perform a qualitative and probative supervision, not a tick-box exercise.

Proactive supervision should include thematic reviews, onsite inspections and introducing an internal scoring mechanism, among others, in order to detect and check for data quality issues. Moreover, NCAs’ actions should focus on areas such as accuracy, completeness, consistency, timeliness and the non-duplication of reporting under EMIR, to list a few. Read ESMA’s full report here.

In light of ESMA’s peer review findings and recommendations, we expect in the near future an increase in supervisory activity by NCAs regarding EMIR data quality.

As such, regulated entities should undertake all necessary actions to ensure compliance with EMIR data reporting. Investment firms and other reporting entities need to enhance the quality of the data reported. This, in turn, increases the need for technological solutions to automate and manage EMIR reporting. By automating reporting, you can bring efficiency to your processes, significantly reduce errors, save time and resources, and confirm that you report and do so correctly.

MAP FinTech can help your organization ensure quality data, benefit from automated reporting solutions, enjoy exceptional support, and rely on experts to keep up-to-date with developments and changes to the regulatory framework.

Why MAP FinTech?
ΜΑΡ FinTech is a leading regulatory technology provider and member of MAP S.Platis Group that specialises in regulatory technology reporting solutions for MiFID II/MiFIR, ΕΜΙR, FATCA, CRS, Best Execution Reporting (RTS 27/28) and Monitoring, as well as the forthcoming SFTR.

If you would like to receive more information about our products and services, please don’t hesitate to contact our team at info@mapfintech.com

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