ESMA has fined the trade repository DTCC Derivatives Repository Limited (DDRL), the EU’s largest registered trade repository, €64,000 and issued a public notice against it for negligently failing to put in place systems capable of providing regulators with direct and immediate access to derivatives trading data. DDRL was required to provide this access to regulators under the European Markets and Infrastructure Regulation (EMIR). DDRL failed to provide access to derivatives data during 2014, with access delays affecting 2.6 billion reports, ranging from two days to 62 days after reporting. This infringement was found to have been committed negligently by virtue of DDRL:

  • failing to have systems capable of providing regulators with the requisite access, thereby failing to provide regulators with direct and immediate access to reported data;
  • failing to inform ESMA in a timely manner of the delays once DDRL became aware of them;
  • taking three months to establish an effective remedial action plan in circumstances where delays during that period were increasing; and
  • failing to take measures to ensure that the commencement of the collateral and valuation reporting under EMIR would have the minimum impact on its remedial efforts.

This is ESMA’s first enforcement against a trade repository registered in the EU. (Source: ESMA fines DDRL €64,000 for data access failures)