Erwin SOTIRI
26 mars 2024
The Guidelines are a comprehensive document from the European Securities and Markets Authority (ESMA) outlining the guidelines for the transfer of data between Trade Repositories (TRs) under the European Market Infrastructure Regulation (EMIR) and the Securities Financing Transactions Regulation (SFTR). The guidelines are designed to establish consistent, efficient, and effective supervisory practices within the European System of Financial Supervision (ESFS) and to ensure the common, uniform, and consistent application of Union law.
The guidelines apply to TRs registered or recognized by ESMA, national competent authorities (NCAs), and reporting counterparties or entities reporting on their behalf. They address the reporting of derivatives and securities financing transactions (SFTs), procedures for portability, transfer of data between TRs, and record-keeping requirements as stipulated by EMIR and SFTR.The document specifies that the existing guidelines on data transfer under EMIR have been in effect since October 16, 2017, with amendments applied from October 3, 2022. The new guidelines under SFTR also took effect on October 3, 2022.Key points of the guidelines include:
Ensuring that details of derivative contracts and SFTs are reported correctly and without duplication.
Prompt recording and maintenance of information by TRs for at least ten years following the termination of the relevant contracts.
Orderly substitution, including the transfer of data to other TRs and redirection of reporting flows, in cases where a TR's registration has been withdrawn.
Procedures for portability under EMIR, allowing for the transfer of records from one TR to another.
The guidelines also detail the compliance and reporting obligations for the relevant entities, including the requirement for national competent authorities to notify ESMA of their compliance status within two months of the publication of the guidelines.Amendments to the guidelines include specific procedures for data transfer, such as ensuring that TR participants modify outstanding derivatives or SFTs to comply with the latest reporting requirements before transfer, and the prioritization of data transfer in cases where a TR's registration is withdrawn.The guidelines also address the technical aspects of data transfer, including the use of XML format and secure machine-to-machine protocols, encryption protocols, and verification of data completeness following transfer.