The European Securities and Markets Authority (ESMA) claimed Regis-TR didn’t live up to the legislation regarding over-the-counter derivatives and slammed it with a €56,000 fine.
The EU’s financial regulatory watchdog has argued that the second largest EU-registered trade repository has been negligent in providing the regulators with direct and immediate access to details of derivatives, contracts that derive their value from the performance of an underlying entity.
It argued Regis-TR failed to live up to rules of the European Markets and Infrastructure Regulation (EMIR). The law stipulates that all derivatives must be reported. EMIR was put in place to reduce systemic, counterparty and operational risk as well boosting transparency.
ESMA argued Regis-TR has failed to live up to this last part. The EU watchdog claimed Regis-TR failed to put in place systems capable of providing regulators direct and immediate access to derivatives data from the start of the EMIR reporting obligation in February 2014 to October 2016.
This related to 85.5 per cent (3.7 billion) of Regis-TR’s data on trade terminations and 1.6 per cent (15 million) of data on trade modifications. Additionally, all of Regis-TR hadn’t provided the regulator with access to 2.9 billion data on trade valuations and 22 million of data on collateral updates.
ESMA argued Regis-TR was liable for the hefty fine as it had allegedly committed the infringement negligently. The EU agency calculated the fine by considered both aggravating and mitigating factors provided for in EMIR.
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, although it is possible for the Board of Appeal to suspend the application of the decision in accordance with Article 60(3) ESMA Regulation.
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