ESMA finds data quality significantly improves under new monitoring approach

ESMA has released its third edition of the Data Quality Report under the EMIR and SFTR reporting regimes. The report highlights significant quality improvements in transaction data following a new approach to data monitoring that takes a more data-driven and outcome-focused approach, as well as setting out how ESMA has incorporated key insights from its data monitoring in several internal workstreams.
The new framework, adopted in 2022, consists of two new elements: a centralised data quality dashboard with EU-wide indicators covering the most fundamental data quality aspects under EMIR, and a data sharing framework that enables relevant authorities to follow up with counterparties when potentially significant data quality issues are detected.
The report also includes analysis of MiFiR transaction data from ARMs and APAs, following on from ESMA’s new supervisory powers over DRSPs.
ESMA and NCAs will continue to work on extending the new monitoring framework beyond EMIR and SFTR in 2023, with continued collaboration with stakeholders such as Repositories, DRSPs, and reporting entities seen as crucial to achieving further improvements to data quality under the relevant reporting regimes.