EMIR & MiFIR Transaction Reporting: Not Just a Mere Reporting Exercise

Source: MAP S.Platis 2020-04-09

EMIR and MiFIR require regulated entities to submit transaction reports to a registered Trade Repository (TR) and their National Competent Authorities (NCAs), either directly or via an Approved Reporting Mechanism (ARM), respectively.

Despite these obligations having been around for some time, several regulated entities are still failing to report accurate information.

The importance of data quality

Regulatory bodies across the EU have incorporated data quality reviews into their supervisory programmes by conducting desk-based analyses and on-site inspections of counterparties.

In this respect, CySEC has issued Circular C291, which details the outcome of its review of the quality of data reported to TRs under EMIR. Furthermore, in light of ESMA’s peer review published towards the end of 2019, CySEC is expected to intensify its supervisory review.

CySEC has also conducted a review of the quality of data reported under MiFIR by the regulated entities. CySEC identified a number of issues and informed the entities via Circular C356 of the problems identified, instructing them to take note of these and rectify them.

In addition, CySEC forewarned that it will take administrative actions against those reporting entities that fail to comply. It is worth noting that in late 2019 CySEC imposed its first administrative fine on regulated entities for EMIR reporting failures.

With this in mind, regulated entities should:

Review the outstanding EMIR positions reported to TRs in accordance with the relevant technical standards;
Ensure the pairing of trades when both counterparties have an obligation to report;
Perform reconciliations between back office data and data reported under EMIR and/or MiFIR;
Ensure that EMIR and/or MiFIR reports are submitted on time and that all the necessary reporting fields are completed and the data reported is accurate;
Monitor their reporting arrangements by assigning a responsible person, and;
Identify issues and take remedial actions.

Next steps

In the near future, we expect an increase in supervisory activity by CySEC concerning EMIR and MiFIR data quality reporting. Hence, regulated entities may consider making greater efforts to ensure the accuracy of the data they report.

How can MAP S.Platis assist you?

Our firm can:

Offer advice on policies, controls and procedures relevant to transaction and trade reporting;
Provide tailored rectification measures best suited for each firm’s modus operandi;
Update your compliance monitoring programme;
Train staff members on issues related to MiFIR and EMIR;
Offer customised health-check reviews to ensure compliance with MiFIR and EMIR;
Provide answers to queries (Q&A service);
Devise and recommend tailored and practical solutions, and;
Help you, via our affiliated regulatory reporting technology provider MAP FinTech, automate the reporting required under EMIR and MiFIR.

Why MAP S.Platis?

MAP S.Platis is the leading financial services consulting group in Cyprus with clients that include regulators, banks, funds and fund managers, investment firms, insurance companies, and payment and electronic money institutions. Our expert team provides unique and tailored solutions in licensing, regulatory compliance, risk management, internal audit, human resources, banking, regulatory technology, executive training and innovation consulting to financial institutions in Cyprus and the EU. Thanks to our vast regulatory compliance experience supporting local and international financial services institutions, continued interaction with regulatory authorities, multidisciplinary and diverse team of professionals, unparalleled track record, global network of associates and wealth of resources, our internationally recognized and award-winning firm can support any client’s regulatory needs, both efficiently and effectively.

For more information on our services, please contact our team at +357 2535 1335 or via email at info@mapsplatis.com

EMIR & MiFIR Transaction Reporting: Not Just a Mere Reporting Exercise

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