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ESMA Releases Fifth Edition of Report on Quality and Use of Data

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Date: 30.04.2025
Type: News
Regimes: EMIREMIR REFITMiFIRSFTR
Categories: ESMA
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The European Securities and Markets Authority (ESMA), has today released its fifth edition of its Report on the Quality and Use of Data.

Background

  • ESMA has published its annual data quality report, which has expanded from covering EMIR, MiFIR and SFTR to also include ESEF and short-selling data.

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

  • This report provides an insight into ESMA’s increase of data usage and data quality key developments, as well as an overview on sanctions imposed by NCAs on reporting obligations.

ESMA

  • ESMA uses data in a multitude of ways and it is a foundation of their market monitoring, macro-level research, policymaking, supervision and supervisory convergence.

Such examples include:

  • Use of transaction data to perform Transparency and Volume Cap calculations

  • Publication of statistics and dashboards

  • CCP monitoring and stress testing

  • Data-driven policy

  • ESMA actively uses data in the development and improvement of its regulation, such as EMIR 2024/2987, also known as ‘EMIR 3’

  • ESMA carried out a data analysis using EMIR data which was reported to trade repositories (TRs) to specify the value of the uncleared and aggregate clearing thresholds.

  • This analysis assessed the population of financial counterparties (FCs) and non-financial counterparties (NFCs) that were above the clearing threshold and created simulations on how they would be impacted at different levels of clearing thresholds.

  • Another example of ESMA using data in their current regulation is their MiFIR Review:

  • The review of Level 1 text of MiFIR caused ESMA to undertake a large-scale review of impacted Level 2 measures through the technical standards, of which some were data-driven.  

  • MiFIR transparency data (FITRS) and reference data (FIRDS) was specifically used in the progression of the revised provisions on equity transparency (RTS 1), bonds transparency (RTS 2) and the CTP revenue redistribution scheme (CTP RTS).

EMIR Data

  • Below are some examples of the data which has been observed from 31 May, 2024 to 31 December, 2024, indicating positive developments in gradually resolving issues thanks to the introduction of EMIR REFIT.

  • There has been a decrease of discrepancies in the number of reported outstanding derivatives between two counterparties at trade level from 33.91% on 31 May, 2024 to 20.5% on 31 December, 2024.

  • There has been a decrease of discrepancies in the number of reported outstanding positions between two counterparties subject to double reporting from 55.16% on 31 May, 2024 to 22.17% on 31 December, 2024.

  • There has been a decrease of outstanding derivatives with outdated valuations to 16.19% on 31 December, 2024.

  • There has been a decrease of outstanding derivatives missing outdated valuations to 12.63% on 31 December, 2024.

 MiFIR Data

  • ESMA has also been using its data analysis for MIFIR.

  • There was a growth of overall transactions from 2023 to 2024 but the proportion of transactions reported through ARMs (Authorised Reporting Mechanisms) decreased slightly.

  • The data also suggests a higher reporting activity among EU countries, with the total number of files reported increasing from 1.15 million in 2023 to 1.21 million in 2024.

  • Equity-like trades increased by 126% and non-equity-like trades grew by 20% in 2024, depicting growth in trading activity.

  • Four significant compliance problems have arisen through this data analysis, and they include publication of deferred transactions, incomplete APA data and incorrect reporting of APA data to FITRS transparency quantitative data.

 Sanctions on Article 26 MiFIR

  • ESMA published a consolidated sanctions report covering measures and sanctions issued by EU countries, with more than 970 of them imposed in 2023.

  • 11 of these were imposed for infringements of Article 26 MiFIR by Bulgaria (7) and Iceland (4).

  • The total value of these fines imposed for breaches of Article 26 MiFIR was 51,204 euros, and it was 342,705 euros for breaches of Article 9 EMIR.

 Conclusion

  • ESMA uses all the tools available to further support the endeavour of enhanced quality of the data available.

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

Download the full report from ESMA