On 17 October, the European Securities and Markets Authority (ESMA) published its report entitled ‘Peer review into supervisory actions aiming at enhancing the quality of data reported under EMIR’. The European authority for the securities markets has conducted an investigation into supervision of the quality of data reported under EMIR. By comparison with the other European supervisory authorities, the AFM is held in relatively good standing. But from the overall standpoint for all supervisory authorities, the supervision of this reporting obligation remains below par.
European Market Infrastructure Regulation (EMIR)
The EMIR regulation has been implemented at the initiative of the European Commission to make trading in ‘over the counter’ derivatives more transparent and safer. ‘Over the counter’ derivatives means derivatives that are not traded on an exchange but are agreed on individually between companies. The companies which come under EMIR must provide this data to the supervisory authorities. ESMA has investigated what actions the European supervisory authorities are undertaking to improve the quality of the reported EMIR data.
Data-driven supervisory authority
The Dutch Financial Markets Authority (AFM) is one of six national regulators which investigated the supervision of data quality supplied to EMIR. Because improvements are required across the board, the AFM considers it important that a fundamental evaluation take place of the current action plan for data quality. Furthermore, the Dutch regulator is convinced that the supervisory authorities with the largest derivatives markets, supported by ESMA, have a key role to play. Reliable EMIR data is an absolute necessity for a data-driven regulator like the AFM. Consequently, the AFM keeps broadening and enhancing its systems and checks.
European regulatory practice
It is ESMA’s task to create a common European regulatory practice by promoting a common regulatory approach. ESMA is working in this role for the consistent application of EMIR.
The AFM is committed to promoting fair and transparent financial markets.
As an independent market conduct authority, we contribute to a sustainable financial system and prosperity in the Netherlands.