European Securities and Markets Authority Fines Trade Repository for Lack of Access to Trade Repository Data

The European Securities and Markets Authority published a decision of its board of supervisors that it had fined the trade repository DTCC Derivatives Repository Ltd EUR 64,000 for failing to provide regulators with access to derivatives trading data. DDRL is part of the DTCC group which includes a number of companies involved in the provision post-trading services to the financial services industry. In May 2014, ESMA became aware of delays by DDRL in providing regulators with access to data reported under the European Market Infrastructure Regulation. The decision of the Board, made March 23, 2016, concluded that DDRL had failed to provide regulators with direct access to derivatives trading data. The failure was caused by failing to put in place data processing systems that were capable of providing regulators with direct and immediate access to reported data. This action was compounded by the DDRL's failure to notify ESMA of the delay and the time taken by DDRL to resolve the issue. Under EMIR, counterparties and CCPs are required to ensure that the details of any derivatives contract which have been concluded, modified or terminated are reported to a trade repository. The details must then be reported to regulators by the trade repository no later than one working day following the conclusion, modification or termination of the contract (provided that the repository receives the report). Trade repositories must make the necessary information available to the ESMA, and other regulators such as the European Systematic Risk Board and national competent authorities in Europe, to enable them to fulfill their responsibilities and mandates. In determining the fine the Board had regard to three aggravating factors: (i) the infringement was committed for more than six months; (ii) the infringement revealed systematic weaknesses in the organization of the trade repository; and (iii) the infringement had a negative impact on the quality of the trade repository data maintained by DDRL. This is the first time ESMA has undertaken enforcement against a trade repository registered in the European Union.

View ESMA's decision.