EU’s securities markets’ regulator ESMA has just informed the public that it has fined the trade repository Regis-TR S.A. €56,000 for negligently failing to provide to regulators direct and immediate access to details of derivative contracts.
The European Markets and Infrastructure Regulation (EMIR) requires TRs to provide derivative contracts information as well as other data to regulators in order to improve transparency and facilitate the monitoring of systemic risks in the derivatives markets.
Regis-TR, the second largest EU-registered trade repository, has failed to put in place systems capable of providing to regulators direct and immediate access to derivatives data from the start of the EMIR reporting obligation in February 2014 to October 2016. These access failures related to:
- 85.5% (3.7 billion) of Regis-TR’s data on trade terminations and 1.6% (15 million) of data on trade modifications; and
- 100% (2.9 billion) of Regis-TR’s data on trade valuations and 100% (22 million) of data on collateral updates.
Regis-TR may appeal against this decision to the Board of Appeal of the European Supervisory Authorities. However, such an appeal does not have suspensive effect.
The official announcement can be seen here.
ESMA has also made a statement last week addressed to providers marketing, distributing or selling CFDs to retail clients. The regulator pointed out that it has serious concerns about firms’ marketing, distribution or sale of CFDs to retail clients and reminded CFD providers about some of the requirements connected with the offering of CFDs.