Shearman & Sterling LLP | Financial Regulatory Developments Focus | EU Proposals to Amend Technical Standards on Trade Repository Data Published
Financial Regulatory Developments Focus
  • EU Proposals to Amend Technical Standards on Trade Repository Data Published
    The European Securities and Markets Authority published proposals for amending the Regulatory Technical Standards on the data to be published and made available by trade repositories and operational standards for aggregating, comparing and accessing the data. The European Market Infrastructure Regulation requires trade repositories to regularly publish aggregate positions by class of derivatives on the contracts reported to it and to provide access to the data that it collects and maintains to relevant authorities and regulators. ESMA was responsible for preparing the original RTS on the frequency and the details of the information to be made available as well as the operational standards required for aggregation and comparison of data across trade repositories.

    ESMA is proposing to amend the original RTS for a number of reasons. First, ESMA is seeking to further define the frequency and timeliness of publication. Second, ESMA is trying to facilitate the assessment of trading volumes in certain classes in commodity derivatives that firms subject to the revised Markets in Financial Instruments Directive might need to ascertain in order to fall within the exemption for ancillary activities set out in that directive. Third, the Benchmark Regulation requires index providers to assess the significance of their indexes against the threshold set out in that Regulation which would entail the use of EU aggregate derivatives data, and ESMA considers that the exercise could be assisted by allowing access to data across trade repositories. Fourth, ESMA is aiming to avoid double counting of cleared transactions for calculation of the aggregate market volumes. Responses to the consultation are due by February 16, 2017. 

    View the consultation paper.
    TOPIC: Derivatives