ESMA consults on technical standards on TRs for EMIR Refit
27 March 2020 Paris
Image: Shutterstock
The European Securities and Markets Authority (ESMA) has launched a consultation on draft regulatory and implementing technical standards (RTS and ITS) under the European Market Infrastructure Regulation (EMIR) Refit for trade repositories (TRs).
The consultation will cover reporting to TRs, procedures to reconcile and validate the data, data access by the relevant authorities and registration of the TRs.
The suggested proposals by ESMA build upon the existing rules and the experience in implementing EMIR since 2012.
Additionally, the EU markets watchdog explains that the proposals address several “essential aspects” related to the enhancement of the quality of the reported derivatives data.
EMIR contains a series of "empowerments" for ESMA to develop draft technical standards. In particular, it mandates the authority to develop ITS on reporting of derivatives to the TRs; ITS and RTS on registration of TRs; RTS on the procedures to be applied by the TRs to reconcile and validate the data; and RTS on the publication and provision of data by the TRs to the relevant authorities.
According to ESMA, it developed the draft technical standards, by either amending the existing provisions or by including new ones stemming from the extended empowerments.
ESMA says to further support its objective, it is extending the current use of SWIFT's ISO 20022 XML for reporting to authorities through the whole reporting chain from the reporting entities to TRs and among TRs for reconciliation.
Meanwhile, ESMA has also revised certain aspects of reporting to the TRs in order to align the reporting requirements in the EU.
ESMA explains that this is within the global guidance on harmonisation of over-the-counter derivatives data elements reported to TRs.
It adds that changes are proposed not only to the ITS on reporting but also to the RTS on reporting which specify the details of the reports to be reported to TRs under EMIR.
Next, ESMA says it will consider the responses to this consultation when developing the draft RTS and ITS for submission to the European Commission for adoption in the final legal text.
The closing date for responses is 19 June.
The consultation will cover reporting to TRs, procedures to reconcile and validate the data, data access by the relevant authorities and registration of the TRs.
The suggested proposals by ESMA build upon the existing rules and the experience in implementing EMIR since 2012.
Additionally, the EU markets watchdog explains that the proposals address several “essential aspects” related to the enhancement of the quality of the reported derivatives data.
EMIR contains a series of "empowerments" for ESMA to develop draft technical standards. In particular, it mandates the authority to develop ITS on reporting of derivatives to the TRs; ITS and RTS on registration of TRs; RTS on the procedures to be applied by the TRs to reconcile and validate the data; and RTS on the publication and provision of data by the TRs to the relevant authorities.
According to ESMA, it developed the draft technical standards, by either amending the existing provisions or by including new ones stemming from the extended empowerments.
ESMA says to further support its objective, it is extending the current use of SWIFT's ISO 20022 XML for reporting to authorities through the whole reporting chain from the reporting entities to TRs and among TRs for reconciliation.
Meanwhile, ESMA has also revised certain aspects of reporting to the TRs in order to align the reporting requirements in the EU.
ESMA explains that this is within the global guidance on harmonisation of over-the-counter derivatives data elements reported to TRs.
It adds that changes are proposed not only to the ITS on reporting but also to the RTS on reporting which specify the details of the reports to be reported to TRs under EMIR.
Next, ESMA says it will consider the responses to this consultation when developing the draft RTS and ITS for submission to the European Commission for adoption in the final legal text.
The closing date for responses is 19 June.
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