(Only in Italian)
In the view of the ESRB, any improvement in data quality will effectively complement the main goals of the upcoming changes to EMIR, i.e. making clearing at EU CCPs more attractive and their supervision more robust, as better data create more transparency for authorities and market participants alike and allow (financial stability) risks to be monitored at an earlier stage, before they have had the chance to manifest themselves.
The ESRB is in close contact with the European Securities and Market Authority (ESMA) and has discussed these proposals with the respective staff.
While ESMA and the ESRB both feel that improvements in data quality can be expected with the entry into force in 2024 of the amended Regulatory Technical Standards (RTS) that were approved in 2020, the ESRB is also of the opinion that further structural improvements in data quality are called for, as the reasons for misreporting are not only attributable to the reporting RTS.
The proposals seek ways to change the legal and regulatory environment so that it provides the right incentives for CCPs, clearing members and clients to provide information of the appropriate quality and on time.
The ESRB would also like to refer to other international initiatives to improve the quality of data reported, such as those of the International Monetary Fund (IMF)/Financial Stability Board (FSB) and ECB Banking Supervision, to highlight the global importance of having accurate and timely data and to ensure coordination between the various initiatives for maximum effectiveness.
The ESRB notes that ensuring data quality is the responsibility of reporting entities (banks, CCPs, funds, etc.); in this vein, the ESRB also notes that financial and non-financial counterparties should already possess high-quality data for their own risk management.
The reporting of these data should therefore not give rise to the issues the ESRB has observed in the context of its monitoring activities. Accordingly, the ESRB proposes several approaches that could help achieve better data quality.
Some of these proposals may be taken into consideration by the European Commission in the context of the targeted EMIR review, while others more generally encompass the scope of other reporting frameworks as well, such as Securities Financing Transactions Regulation (SFTR) and Public Quantitative Disclosure (PQD) data.