Clarus calls for EMIR debate
25 March 2015 London
Image: Shutterstock
Clarus Financial Technology is pushing for greater debate around the format and extent of data made public on reporting under European Market Infrastructure Regulation (EMIR).
Responding to the recent European Securities and Markets Authority (ESMA) consultation paper on Article 9, Clarus highlighted the significant variation between the data available in the US and Europe, and the negative impact this is having on market participants.
“One of the key objectives of EMIR was to create a transparent environment in which companies can access trade information vital to their trading and hedging requirements,” commented Clarus CEO, Amir Khwaja.
“But the scope and frequency of data available publicly in Europe means it has little value in terms of analysis. Trade repositories in Europe publish only high-level aggregated totals that are not broken down into actionable data.”
“In contrast, the US data is more frequent and more granular, meaning that we can provide detailed analysis informing both pre- and post-trade processes.”
Khwaja also states that the regulations emerging as a result of Dodd Frank in the US and EMIR in Europe were largely developed in parallel meaning that it was “very difficult” to work on the principles of best practice as both jurisdictions had to meet tight deadlines.
“This consultation provides the opportunity to review that and work towards greater consistency of approach along best practice lines. We are encouraging ESMA to reconsider the current position whereby publicly available data in Europe is very limited, published only weekly and on an aggregated basis.”
Responding to the recent European Securities and Markets Authority (ESMA) consultation paper on Article 9, Clarus highlighted the significant variation between the data available in the US and Europe, and the negative impact this is having on market participants.
“One of the key objectives of EMIR was to create a transparent environment in which companies can access trade information vital to their trading and hedging requirements,” commented Clarus CEO, Amir Khwaja.
“But the scope and frequency of data available publicly in Europe means it has little value in terms of analysis. Trade repositories in Europe publish only high-level aggregated totals that are not broken down into actionable data.”
“In contrast, the US data is more frequent and more granular, meaning that we can provide detailed analysis informing both pre- and post-trade processes.”
Khwaja also states that the regulations emerging as a result of Dodd Frank in the US and EMIR in Europe were largely developed in parallel meaning that it was “very difficult” to work on the principles of best practice as both jurisdictions had to meet tight deadlines.
“This consultation provides the opportunity to review that and work towards greater consistency of approach along best practice lines. We are encouraging ESMA to reconsider the current position whereby publicly available data in Europe is very limited, published only weekly and on an aggregated basis.”
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