ESMA Releases 2021 Work Program with Transaction Reporting
- ESMA’s main objective will continue to be the enhancement of the quality of data reported to trade repositories under EMIR.
Trade and transaction reporting have featured prominently in the upcoming Work Program of Europe’s supranational corporate regulator, ESMA, in 2021.
Data quality remains a key objective for ESMA when it comes to transaction reporting. The report split out ESMA’s focus and expectations under both the EMIR and STFR regimes.
Quinn Perrott, Co-CEO of TRAction
For EMIR, ESMA has stated that its supervisory approach is data-driven and risk-based. In 2021, ESMA’s main supervisory objective will continue to be the enhancement of the quality of data reported to trade repositories under EMIR. ESMA will continue its implementation of the Data Quality Action Plan (DQACP), a program it launched in September 2014 to standardise and improve data received by regulators across Europe. In its Work Program, ESMA has said that the DQACP will provide accessibility, accuracy and integrity to EMIR reports, identify anomalies and allow EMIR reconciliation across European borders.
Great effort by ESMA will be undertaken over the next 12 months to ensure continuity of EMIR trade reporting from pre-Brexit to post-Brexit legal entities. It is anticipated that many firms will amend their IT infrastructure arrangements, including location and architecture. Firms are reminded to provide an uninterrupted and stable service amidst these changes. ESMA voiced concerns on firms’ general approach to IT strategy, IT system development and IT outsourcing. A warning to firms to avoid ESMA’s risk-based binoculars.
ESMA also noted it would assist in the ‘smooth winding down plans of any registered trade repository withdrawing its registration’ – a clear reference to CME’s shock announcement to leave its trade repository businesses in Europe and Australia.
With regards to the SFTR, ESMA asserted that it expects its supervisory work will focus on performing re-validations on SFTR submissions to ensure reports are in line with validation rules, assessing completeness and accuracy of SFTR Trade State and Activity reports and assessing STFR reconciliation.
Stable Trade Repository SFTR service will remain a focus in the headwinds of COVID-19 and Brexit Brexit Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Read this Term. ESMA reminded participants to monitor resource allocation to SFTR and IT performance and capacity of the SFTR.
With regulatory change mandated in Q2/Q3 of 2020, namely cloud computing and SFTR guidelines on positions, ESMA has stated its active role as a regulator to ensure implementation.
ESMA expects to liaise with all stakeholders over the next 12 months in regards to the trade reporting regimes it oversees.
Quinn Perrott is the co-CEO and founder of TRAction who focuses on assisting clients in Europe, Asia and Australia to meet their regulatory requirements with trade and transaction reporting solutions as well as the development of the best Execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Read this Term platform.
Trade and transaction reporting have featured prominently in the upcoming Work Program of Europe’s supranational corporate regulator, ESMA, in 2021.
Data quality remains a key objective for ESMA when it comes to transaction reporting. The report split out ESMA’s focus and expectations under both the EMIR and STFR regimes.
Quinn Perrott, Co-CEO of TRAction
For EMIR, ESMA has stated that its supervisory approach is data-driven and risk-based. In 2021, ESMA’s main supervisory objective will continue to be the enhancement of the quality of data reported to trade repositories under EMIR. ESMA will continue its implementation of the Data Quality Action Plan (DQACP), a program it launched in September 2014 to standardise and improve data received by regulators across Europe. In its Work Program, ESMA has said that the DQACP will provide accessibility, accuracy and integrity to EMIR reports, identify anomalies and allow EMIR reconciliation across European borders.
Great effort by ESMA will be undertaken over the next 12 months to ensure continuity of EMIR trade reporting from pre-Brexit to post-Brexit legal entities. It is anticipated that many firms will amend their IT infrastructure arrangements, including location and architecture. Firms are reminded to provide an uninterrupted and stable service amidst these changes. ESMA voiced concerns on firms’ general approach to IT strategy, IT system development and IT outsourcing. A warning to firms to avoid ESMA’s risk-based binoculars.
ESMA also noted it would assist in the ‘smooth winding down plans of any registered trade repository withdrawing its registration’ – a clear reference to CME’s shock announcement to leave its trade repository businesses in Europe and Australia.
With regards to the SFTR, ESMA asserted that it expects its supervisory work will focus on performing re-validations on SFTR submissions to ensure reports are in line with validation rules, assessing completeness and accuracy of SFTR Trade State and Activity reports and assessing STFR reconciliation.
Stable Trade Repository SFTR service will remain a focus in the headwinds of COVID-19 and Brexit Brexit Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Read this Term. ESMA reminded participants to monitor resource allocation to SFTR and IT performance and capacity of the SFTR.
With regulatory change mandated in Q2/Q3 of 2020, namely cloud computing and SFTR guidelines on positions, ESMA has stated its active role as a regulator to ensure implementation.
ESMA expects to liaise with all stakeholders over the next 12 months in regards to the trade reporting regimes it oversees.
Quinn Perrott is the co-CEO and founder of TRAction who focuses on assisting clients in Europe, Asia and Australia to meet their regulatory requirements with trade and transaction reporting solutions as well as the development of the best Execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Read this Term platform.