ESMA publishes final report on TR transparency consultation
09 April 2021 France
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The European Securities and Markets Authority (ESMA) has published its final report and guidance from its 2019 market consultation on enhancing transparency among trade repositories (TRs) licenced under securities financing and over-the-counter derivatives reporting regulations.
The documents focus on reporting periodic information and material changes to services provided by TRs supervised under the Securities Financing Transactions Regulation and the European Markets Infrastructure Regulation.
The report and complementary guidance notes for TRs formalises previously communicated updates to the requirements for the scope, frequency and format the information to be shared with stakeholders and regulators under the two regimes.
ESMA says the guidelines will streamline TRs' processes and ensure the accuracy of information used for the calculation of TR supervisory fees.
The initiative aims to bring several benefits to the market such as reducing the burden on TR clients to request this information sporadically and ensure that no information is omitted, while also reducing the processing time of information received.
The new standards will also ensure a level playing field by establishing harmonised reporting templates and ensure the regulator has the necessary information for its risk-based supervision mandate, ESMA says.
Moreover, the guidelines promise to improve the internal planning of ESMA’s supervision teams about information review and facilitate processing and standardise practices that are already implemented by TRs on a best effort basis.
The documents focus on reporting periodic information and material changes to services provided by TRs supervised under the Securities Financing Transactions Regulation and the European Markets Infrastructure Regulation.
The report and complementary guidance notes for TRs formalises previously communicated updates to the requirements for the scope, frequency and format the information to be shared with stakeholders and regulators under the two regimes.
ESMA says the guidelines will streamline TRs' processes and ensure the accuracy of information used for the calculation of TR supervisory fees.
The initiative aims to bring several benefits to the market such as reducing the burden on TR clients to request this information sporadically and ensure that no information is omitted, while also reducing the processing time of information received.
The new standards will also ensure a level playing field by establishing harmonised reporting templates and ensure the regulator has the necessary information for its risk-based supervision mandate, ESMA says.
Moreover, the guidelines promise to improve the internal planning of ESMA’s supervision teams about information review and facilitate processing and standardise practices that are already implemented by TRs on a best effort basis.
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