DTCC pays €64,000 in first derivatives data fine
01 April 2016 Paris
Image: Shutterstock
The European Securities and Markets Authority (ESMA) has fined the Depository Trust and Clearing Corporation (DTCC) Derivatives Repository Limited (DDRL) for failing to properly report derivatives trading data.
The €64,000 fine relates to failures between 21 March and 15 December 201, and marks the first time ESMA has taken any action against an EU trade repository.
According to ESMA, DDRL failed to put systems in place that were capable of providing regulators with direct and immediate access to derivatives trading data.
Providing immediate access to this data is a key requirement of the European Markets and Infrastructure Regulation (EMIR), intended to improve transparency and monitoring of systemic risk.
ESMA found that DDRL was negligent in putting effective processing systems in place to manage data reports, and that, once it was aware of the issue, it failed to notify ESMA in a timely manner.
The authority also found that DDRL took around three months to establish a remedy to the problem, by which time delays had escalated from two days to 62. In total, delays to data reporting affected 2.6 billion reports.
According to ESMA, the issue revealed systematic weakness in the organisation, particularly in procedures, management systems and internal controls.
A DTCC spokesperson said: “DTCC continues to work closely with ESMA and with regulators around the world to ensure the timely submission of derivatives trade data in support of G20 goals.”
The €64,000 fine relates to failures between 21 March and 15 December 201, and marks the first time ESMA has taken any action against an EU trade repository.
According to ESMA, DDRL failed to put systems in place that were capable of providing regulators with direct and immediate access to derivatives trading data.
Providing immediate access to this data is a key requirement of the European Markets and Infrastructure Regulation (EMIR), intended to improve transparency and monitoring of systemic risk.
ESMA found that DDRL was negligent in putting effective processing systems in place to manage data reports, and that, once it was aware of the issue, it failed to notify ESMA in a timely manner.
The authority also found that DDRL took around three months to establish a remedy to the problem, by which time delays had escalated from two days to 62. In total, delays to data reporting affected 2.6 billion reports.
According to ESMA, the issue revealed systematic weakness in the organisation, particularly in procedures, management systems and internal controls.
A DTCC spokesperson said: “DTCC continues to work closely with ESMA and with regulators around the world to ensure the timely submission of derivatives trade data in support of G20 goals.”
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