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17th April 2024

ESMA Releases Report on Quality and Use of Data

ESMA has published its fourth annual data quality report, which has expanded from covering EMIR and SFTR to also include MIFIR and other smaller directives.

The use and monitoring of data quality is one of the strategic objectives for ESMA for the period of 2023-2028, which is the core reason behind the creation of these reports.

This report provides a useful insight into ESMA’s goal of improving data quality and efficiency.


ESMA uses two pillars to supervise data quality, which provides an avenue for an exchange of communication:

  • DQIs – Data Quality Indicators

  • Data sharing framework

The DQIs have shown considerable progress in improving data quality, such as:

  • The discrepancy of reporting outstanding derivatives between counterparties reducing by 14.6% from September 2021 to December 2023.

  • There was a new low of 6.5% in discrepancies in reported outstanding derivatives positions.

  • Outstanding derivatives with late valuations decreased by 35.8% from September 2019 to December 2023.

However, some areas of improvement were:

  • The number of appropriate CFD’s for entities,

  • Timeliness in valuation reports, and

  • Discrepancies in notional values and number of trades outstanding reported by CCPs and CMs.

MiFIR Data

For MiFIR, ESMA uses Data Reporting Services Providers (DRSP) to enable investors and NCAs to receive accurate and timely market data. The categories of DRSPs are:

  • Approved Reporting Mechanisms (ARM)

  • Approved Publication Arrangements (APA)

  • Consolidated Tape Providers (CTP)

Approved Reporting Mechanisms (ARM) receive transaction data from investment firms and transmit them to NCAs. Below are some interesting statistics:

  • The total number of transactions decreased by 22.9% from 2022 to 2023, and transactions from ARMs decreased by 20.7% from 2022 as well.

  • The first quarter of 2023 produced a high number of transactions received, but the rest of the year there was a sharp decrease up until the year’s end.

  • The rejection rate of files submitted to ARMs produced a 46% decrease, which is a commendable effort.

Approved Publication Arrangements (APA) collect and publish post-trade OTC transaction data and provide visibility of financial instrument markets to participants. Some insights are:

  • Three APAs account for over 98% of published equity and non-equity transactions.

  • The volume of published transactions was stable up until October 2023, where there was an increase of over 150% in published equity transactions.

  • Consolidated Tape Providers (CTP) collect real-time data and consolidate it into a single, comprehensive view of market activity and prices.


ESMA uses all the tools above to continue with its strategic objectives for improving data quality.

It plans to continue improving on the transparency of data quality monitoring and adjusting the frameworks as necessary.

Download the full report from ESMA

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