Esma sees EMIR and SFTR data quality improve

02/05/2022

On 1st April 2022, the European Securities and Markets Authority (ESMA) published the second edition of its Data Quality Report based on data gathered under the European Markets Infrastructure Regulation (EMIR) and, for the first time in 2021, the Securitised Financing Transactions Regulation (SFTR) reporting regimes.

The Report presents an analysis of data quality for regulatory and supervisory use and finds that the coordinated supervisory actions by ESMA and the National Competent Authorities (NCAs) have significantly enhanced data quality in 2021.

ESMA’s analysis indicates that, despite these very positive results, certain aspects related to data reconciliation will require more efforts by reporting entities. In particular, the report suggests that data quality could be enhanced if counterparties also used the same data set and the same identifiers for the reported data in their internal risk management processes.

2021 was the first year of the coordinated supervisory actions between ESMA and the NCAs for SFTR. For this reason, ESMA’s analysis focused on fundamental aspects of data quality, such as the timeliness of reporting, data rejection rates and pairing. Since its start on 13 July 2020, the SFTR reporting regime has shown comparable results to EMIR across all data quality metrics.

Head of Knowledge Management Strategy and Market Infrastructure - SGSS