In these challenging times, European firms did receive a grain of good news.
On 13th July, ESMA stated that it had received reports from trade repositories (TRs) indicating that the first day of reporting by financial and non-financial firms under the SFTR had gone smoothly.
On Monday, the four SFTR-authorised TRs opened their systems and started receiving and processing SFT data submitted by liable market participants. So far, ESMA has not identified any major disruptions in the functioning of TRs. Over the coming days, ESMA will continue to monitor the availability of TR systems and data to both reporting firms and authorities.
On the basis of Monday’s solid start to SFTR reporting, it appears that the Covid-19 pandemic did not prove too disruptive to firms’ last-minute preparations. Even so, ESMA will continue to engage with firms to clarify any remaining issues and will assess the need for further supervisory convergence measures to facilitate compliance with the SFT’s new reporting requirements.
ESMA stated that its supervision will continue to ensure the availability of TR systems as well as resolving shortcomings in the quality of data provided by reporting entities to TRs. As with any new reporting regime, ESMA expects that issues will be identified in the first months following go-live, in particular as reporting systems continue to be improved and stabilised.
ESMA will implement a framework for the monitoring and enhancement of the quality of data available to NCAs, central banks and other authorities entitled to access transaction data under SFTR. Under that framework, ESMA will supervise the implementation of any corrective and/or remediation measures by TRs as well as coordinating targeted actions by NCAs towards reporting entities.
At DeltaconX, we are pleased to hear this news. We’ll be monitoring the situation to see if Monday’s smooth start can be maintained, and commenting on the major issues in our Insights articles.
Please contact our Compliance Help Desk if you require any further information on SFTR reporting, and require further guidance on how DeltaconX can help you meet your reporting obligations.