ESMA Identifies Costs and Performance and Data Quality Supervisory Priorities

The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, using its new convergence powers, has identified costs and performance for retail investment products and market data quality as the Union Strategic Supervisory Priorities for national competent authorities (NCAs) in a press release today. (Source: https://www.esma.europa.eu/press-news/esma-news/esma-identifies-costs-and-performance-and-data-quality-new-union-strategic )

MiFIR Data quality is highlighted in ESMA’s 2021 Annual Work Program and this press release further draws attention – albeit not specifically mentioning MiFIR transaction reporting to the importance of data quality for regulators in the detection of market abuse. (Source: https://www.esma.europa.eu/sites/default/files/library/esma20-95-1273_2021_annual_work_programme.pdf )

As per the details in the release :

“The selection of costs and performance and data quality will ensure that risks and problems in these two areas are addressed simultaneously by NCAs across the European Union and thereby ensuring greater protection for investors and the orderly functioning of markets. ”Data is now a core element of securities markets regulation and it is a vital component of NCAs’ data-driven approaches to supervision. The reporting datasets and requirements have grown exponentially since the 2008 financial crisis and data quality is improving.”

“A better understanding of the requirements by market participants could avoid poor and late reporting. Making progress in improving data quality is important to investors, market participants and regulators as reliable and timely data is needed to deter and detect market abuse, provide transparency calculations and identify systemic and counterparty risk building up in jurisdictions.”

UnaVista Analytics – Data Accuracy has been designed to deliver enhanced Management Information and a set of Control Dashboards allowing the ongoing monitoring of MiFIR reporting data quality by firms.  Further the module also includes T+2 data accuracy alerts designed to highlight likely reporting errors commented on by regulators so they can be caught quickly, remediated and avoided in the future.  Please contact your UnaVista Account Manager for further details.