European Securities and Markets Authority Issues Final Guidelines for the Transfer of Data Between Trade Repositories
08/24/2017The European Securities and Markets Authority has published final Guidelines governing the transfer of data between trade repositories (TRs) registered or recognised by ESMA.
The Guidelines cover: (i) the reporting without duplication of derivative contract data by counterparties and CCPs; (ii) transfer of derivatives data between trade repositories at the request of the counterparties to a derivative, or the entity reporting on their behalf; (iii) transfer of data from a TR whose registration has been withdrawn; and (iv) the requirements on TRs to promptly record information received and maintain information for at least ten years following termination of the relevant contracts.
An aim of the Guidelines is to remove obstacles to data portability. ESMA notes that data quality could be affected if derivatives counterparties report to different TRs, and if a TR ceases operating. TRs ceasing to operate may be a concern deriving from Brexit, given that most of the TRs are located in the UK. ESMA considers that data and reporting portability must be regulated effectively to ensure genuine competition in the market for TRs and to reduce the risk of inaccurate/incorrect data aggregation from multiple repositories. The Guidelines also seek to enhance the quality of data available to national regulators, including the aggregations carried out by TRs, to allow those authorities to fulfil their responsibilities and mandates. Finally, the Guidelines describe a consistent and harmonized basis for transferring records from one TR to another TR and support the continuity of reporting and reconciliation in all cases including the withdrawal of registration of a TR.
The Guidelines will become applicable on October 16, 2017. Compliance by the TRs with the Guidelines will be assessed on an annual basis.
View the Final Report.TOPIC: Derivatives