EMIR REFIT: EXAMPLE ERRORS AND OMISSIONS

December 20, 2022

ESMA have today published a template which should be used for the communication of errors and omissions to them (see the final tabs of the validations documents here).

ESMA have provided the following population guidelines for how to write an error and omission form;

General

  • All fields are mandatory is relevant & available on notification date.
  • Each data quality issue requires a separate notification
  • If several data quality issues with a common cause a single notification can be sent.
  • All notification should use standardized filename (see DQ notification template).
  • If the Entity responsible for reporting is responsible for multiple counterparties, all counterparties with significant issues should be included.

Population Guidelines

Ref Section Information Format Population Guidance
1.1 Basic Information on and Identification of the Notification, ERR and RSE(s)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ID of the Notification Alphanumerical characters Unique identification code assigned by the Entity Responsible for Reporting. In case the notification needs to be updated in accordance with the Guidelines e.g. more affected records are identified, the same ID should be used for the updated notification than for the initial one.
1.2 Date of Notification DD.MM.YYYY Date when the notification was provided to the NCA.
1.3 Type of Notification new notification / update to notification previously submitted Indicate whether this notification is an update to a previous notification or if it is a new notification.
1.4 Entity Responsible for Reporting – LEI LEI format as per the [ITS on standards] For OTC derivatives the Entity Responsible for Reporting is:
– Where a financial counterparty is solely responsible, and legally liable, for reporting on behalf of both counterparties in accordance with Article 9(1a) of Regulation (EU) No 648/2012 of the Parliament and of the Council  and the non-financial counterparty does not decide to report itself the details of its OTC derivative contracts with the financial counterparty, that financial counterparty.
– Where a management company is responsible, and legally liable, for reporting on behalf of an Undertaking for Collective Investment in Transferable Securities (UCITS) in accordance with Article 9(1b) of that Regulation, that management company.
– Where an Alternative Investment Fund Manager (AIFM) is responsible, and legally liable, for reporting on behalf of an Alternative Investment Fund (AIF) in accordance with Article 9(1c) of that Regulation, that AIFM.
– Where an authorised entity that is responsible for managing and acting on behalf of an IORP is responsible, and legally liable, for reporting on its behalf in accordance with Article 9(1d) of that Regulation, that entity.
– If none of the above is applicable, the counterparty.
For ETD derivatives, the Entity Responsible for Reporting is the counterparty.
1.5 Entity Responsible for Reporting – full name: Free text Full name of the Entity Responsible for reporting.
1.6 National Competent Authority of the Entity Responsible for Reporting : Free text Name of the authority in charge of supervising the entity responsible for reporting (i.e. the Home NCA).
1.7 Entity Responsible for Reporting – Contact E-mail Free text E-mail address relevant for follow-ups pertaining to the notification.
1.8 NCA of the Entity Responsible for Reporting: Free text National Competent Authority relevant for the Entity Responsible for Reporting providing the notification.
1.9 Report Submitting Entity/Entities LEIs: LEI format as per the [ITS on standards] comma separated if more than one LEI populated LEI(s) of the Report Submitting Entity/Entities which submitted the  affected records in accordance with Table 1 or Table 3 of the annex to [RTS on data reported].
2.1 Scope of the Affected Reports – General Information, Affected Counterparties and the Details on Affected Records Pertaining to Them

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 General Description of the Scope of the Affected Records: Free text Describe the features of the derivatives or reports that are affected by the error or omission. Ideally the description should allow to identify the specific reports based on the relevant fields as per Tables 1, 2 and 3 of the Annex to RTS on reporting. If this is not possible due to some features that are not present in the tables, the description should be specific enough to be able to determine the impacted reports. If possible and not overly burdensome provide the list of UTI’s as a separate tab in the template. The list of UTIs may contain only a subset of all the affected UTIs, to provide a sample of incorrect data. If the notification pertains to several interconnected data quality issues which however result in different types of errors, separate samples of UTIs may be provided in separate tabs of the notification.
2.2 Counterparty 1 Full Name: Free text Full name of the counterparty for which a data quality issue has been identified.
2.3 Counterparty 1 LEI: LEI format as per the ITS on reporting The LEI of the counterparty for which a data quality issue has been identified.
2.4  NCA of the Counterparty 1: Free text NCA responsible for the supervision of the  given counterparty, to which the notification of the data quality issue pertaining to Counterparty 1 is provided.
2.5 Monthly Average Number of Records: Integer Monthly Average Number of Records submitted for Counterparty 1 as calculated in accordance with Chapter 4.29 of the Guidelines for reporting under EMIR, if the assessment of significance of the issue was conducted.
2.6 Total Number of Affected Records,  broken down by Action Type Integer or if not possible Yes/No The number of records affected by the data quality issue, also broken down per action type if possible and not overly burdensome. If it is not possible to quantify records per each action type, or if it is overly burdensome, please indicate at least which action types are affected by populating Yes/No for each of the action types.
3.1 Type of the Errors or Omissions Type of the Errors or Omissions as per [ITS on data standards]: Yes/No Legislative reference to Art. 9(1) (a), (b), (c) of  [ITS on data standards]
3.2  Issue Description: Free text A high level description of the issue or omission that have occurred.
4.1 Reasons for the Errors or Omissions Reasons for the Errors or Omissions Free text Describe the reasons and root causes of the errors or omissions which are subject of the notification.
5.1 Steps Taken or Planned to Resolve the Issue Steps Taken or Planned to Resolve the Issue: Free text Describe the steps taken or planned to be executed to resolve the data quality issue which is subject of the notification and avoid a new occurrence thereof.
6.1 Date of the Occurrence

 

 

Issue Start Date DD.MM.YYYY The earliest “Reporting date” of the first affected record.
6.2 Issue End Date: DD.MM.YYYY The latest “Reporting date” of the last affected record, if the date is already known. If the issue occurred only on a single date it should be populated with the same date as the Issue Start Date. If the end date of the issue is not known, the field shall be left blank.
7.1 Timeline for Resolution of the Issue and Data Submission or Correction

 

 

 

 

 

 

 

 

General Description of the Timelines: Free text Provide general information about the timeline of the resolution of the data quality issue and the plan for data submission in case of omissions or data correction in case of errors.
7.2 Planned Date of the Bug-fix(es): DD.MM.YYYY If the data quality issue was caused by an error in the IT systems, provide the planned date of the deployment of the bug-fix(es), if already known.
7.3  Data Submission/Correction – Start Date: DD.MM.YYYY The first date when the omitted or corrected data will be submitted according to the expected timeline.
7.4 Data Submission/Correction – End Date: DD.MM.YYYY The last date when the omitted or corrected data will be submitted according to the expected timeline. If the data will be submitted during a single day it should be populated with the same date as Data Submission/Correction – Start Date. If the end date of the data submission/correction is not known, the field shall be left blank.
8.1 Further Information or Comments Additional Information or Comments Relevant for the Notification: Free text Any other information or comments the ERR wishes to provide to the NCA for a comprehensive picture of the data quality issue.

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