Evidence for increasing regulatory scrutiny

After a period of intensive regulatory change, CN believe the market hasn’t correctly implemented their MiFIR and EMIR reporting requirements. 

The rate of regulatory change is now set to slow and CN believe this will allow for a period of reflection by regulators and reporting firms to assess the quality of implemented solutions.

 

CN has also found evidence to suggest that regulators are going to begin increasing the monitoring they are performing on investment firm’s Transaction Reports and processes.

The European Securities and Market Authority (ESMA) have increased their spending year on year on their Data Management and Statistics activities to “Ensure the quality, integration, usability and transparency of the data” (ESMA, Dec 18);

Data Management and statistics funding (Euros) % Increase Source
5,747,133 n/a ESMA 2017 Work Programme
7,526,745 30.97 ESMA 2018 Work Programme
10,663,830 41.68 ESMA 2019 Work Programme

Table 5 – ESMA budget for data management and statistic activities