Q3 2020: THE BIGGER PICTURE

September 8, 2020

Over the last decade there have been many times when I have questioned what it is all for; the late night reading legal texts, the hours manipulating data spreadsheets and the ever receding hairline.

I have heard industry peers ask; “Why bother? As the data isn’t being used for anything anyway!”.

This quarter, we are learning why.

The European Systemic Risk Board (ESRB) are responsible for the prevention and mitigation of systemic risk of the EU financial system.

They have stated “EMIR data has repeatedly proven to be fundamental for the ESRB in monitoring developments from a systemic risk perspective”. Specifically they mention in their letter to ESMA that they have been able to quickly re-purpose EMIR data to monitor risks resulting from COVID and Brexit.

But, there’s a problem. Data quality remains poor (Control Now are seeing 80% inaccuracy on EMIR data)… and the regulators know it.

The FCA have released two more Market Watches this quarter, reiterating the importance of transaction reporting (MW 64), and identifying data quality issues which they have encountered while analysing MiFIR transaction reports (MW 65) – top marks to CN clients who will be checking for these issues already!

They have also updated the EMIR errors and omissions forms, making it mandatory to identify the senior manager responsible for EMIR reporting, while also reiterating the requirement to inform them of all misreports immediately.

The ESRB have stated “Data quality should be regarded as a common good – one which results in key benefits for the stability of the financial system” and “reporting entities must make progress on EMIR data quality”.

Meanwhile, Control Now continues to grow this quarter; with 3 new staff, 6 new clients and the announcement that we are expanding our products into Australian and Canadian regulations.

So, if you want to do your bit for the systemic risk in the financial system, then take a look at your data quality.

If you want to save yourself a ginormous headache while doing it, then get in touch. Our reporting health check will tell you in under 5 minutes how much work you have to do… and we have the team and tools to help you fix it!

 

Murray Abel

Managing Director

D: +44 (0)20 3286 8889

M: +44 (0)7813 187 78o