ESMA Fines DTCC Derivatives Repository €408K


The European Union’s securities watchdog ESMA has fined €408,000 on DTCC Derivatives Repository Plc for multiple EMIR data breaches.

July 12, 2021, | AtoZ MarketsThe European Securities and Markets Authority (ESMA) on Monday announced it has fined DTCC Derivatives Repository Plc (DDRL) a total of €408,000 ($484,418) for seven infringements of the European Market Infrastructure Regulation (EMIR) regarding data confidentiality, data integrity, and direct and immediate access to data.

Data repositories were set up in the aftermath of the global financial crisis to improve transparency in markets by keeping a record of transactions for regulators to spot risky positions faster.

The EU watchdog said DTCC’s London-based Derivatives Repository gave certain asset managers access to data they were not entitled to receive.

It also failed to provide regulators with direct and immediate access to relevant data, ESMA said, adding the breaches occurred between 2014 and 2018 before Britain fully left the EU in December last year.

The provision of timely, accurate and confidential data to CCP (central counterparty clearing houses) and derivatives markets supervisors is an essential requirement in facilitating the monitoring and identification of systemic risk in EU derivatives markets,” ESMA’s interim chair Anneli Tuominen said in a statement.

DTCC, which has a right of appeal, was not immediately available for comment. Before Brexit, DDRL had the largest market share among repositories in the EU.

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