REGIS-TR falls foul of EMIR reporting rules
21 August 2019 Luxembourg
Image: Shutterstock
REGIS-TR, the EU’s second-largest trade repository (TR), has been fined by the European Securities and Markets Authority (ESMA) for failing to provide “direct and immediate access” to details for derivative contracts as required by the European Market Infrastructure Regulation (EMIR).
The TR is a joint venture between Clearstream, part of the Deutsche Boerse group, and the Spanish CSD Iberclear that was established in Luxembourg in 2010. It provides reporting services for regulations concerning the securities finance market.
In a statement on the ruling, the authority outlined that REGIS-TR “did not implement systems capable of providing to regulators direct and immediate access to derivatives data from the start of EMIR reporting obligation in February 2014 to October 2016”.
As a result, ESMA found that REGIS-TR had committed the infringement negligently and handed it a €56,000 penalty. In calculating the fine, ESMA said it considered both aggravating and mitigating factors provided for in EMIR.
This is REGIS-TR's first offence for breaching data sharing rules.
Under EMIR, TRs must ensure that specified authorities and regulators have access to the details of derivatives contracts they need to fulfil their respective responsibilities and mandates to monitor systemic risks in the derivatives markets.
According to ESMA, the access failures related to 85.5 percent of REGIS-TR’s data on trade terminations, representing 3.7 billion data points and 1.6 percent of its data on trade modifications, accounting for 15 million interactions. ESMA also highlighted an inability to access any data relating to REGIS-TR’s 2.9 billion trade valuations or for 22 million collateral updates.
A spokesperson for the TR said: “REGIS-TR takes its regulatory duties as a European trade repository very seriously. Upon discovery of the breach, we voluntarily took measures to correct the situation and to ensure that a similar infringement cannot happen in the future. There was no direct client impact.”
REGIS-TR declined to comment on whether it would be exercising its right to appeal against the ruling to the Board of Appeal of the European Supervisory Authorities. It has until 11 September to file its appeal.
The ruling marks ESMA's second enforcement against a TR for breaching data sharing rules.
DTCC Derivatives Repository was fined €64,000 for similar data-sharing failures in March 2016.
The TR is a joint venture between Clearstream, part of the Deutsche Boerse group, and the Spanish CSD Iberclear that was established in Luxembourg in 2010. It provides reporting services for regulations concerning the securities finance market.
In a statement on the ruling, the authority outlined that REGIS-TR “did not implement systems capable of providing to regulators direct and immediate access to derivatives data from the start of EMIR reporting obligation in February 2014 to October 2016”.
As a result, ESMA found that REGIS-TR had committed the infringement negligently and handed it a €56,000 penalty. In calculating the fine, ESMA said it considered both aggravating and mitigating factors provided for in EMIR.
This is REGIS-TR's first offence for breaching data sharing rules.
Under EMIR, TRs must ensure that specified authorities and regulators have access to the details of derivatives contracts they need to fulfil their respective responsibilities and mandates to monitor systemic risks in the derivatives markets.
According to ESMA, the access failures related to 85.5 percent of REGIS-TR’s data on trade terminations, representing 3.7 billion data points and 1.6 percent of its data on trade modifications, accounting for 15 million interactions. ESMA also highlighted an inability to access any data relating to REGIS-TR’s 2.9 billion trade valuations or for 22 million collateral updates.
A spokesperson for the TR said: “REGIS-TR takes its regulatory duties as a European trade repository very seriously. Upon discovery of the breach, we voluntarily took measures to correct the situation and to ensure that a similar infringement cannot happen in the future. There was no direct client impact.”
REGIS-TR declined to comment on whether it would be exercising its right to appeal against the ruling to the Board of Appeal of the European Supervisory Authorities. It has until 11 September to file its appeal.
The ruling marks ESMA's second enforcement against a TR for breaching data sharing rules.
DTCC Derivatives Repository was fined €64,000 for similar data-sharing failures in March 2016.
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