Post Trading

The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, has published three sets of technical advice to the European Commission (EC) regarding third-country central counterparties (TC-CCPs) under the revised European Market Infrastructure Regulation (EMIR 2.2). 

ESMA’s advice details:

  • how to specify the criteria to determine whether a TC-CCP is systemically important for the EU or a Member State’s financial stability (tiering);
  • how to assess comparable compliance; and
  • the fees to be charged to TC-CCPs.

Steven Maijoor, ESMA Chair, said:

“CCPs are important financial market infrastructures that play a key role in helping to mitigate transactional risks related to central clearing. To achieve the stability and safety of the EU financial system, it is important that we capture the risks associated with CCPs, be they EU or third-country based.

“Our technical proposals, once implemented, will help to achieve this goal by ensuring proportionate supervision is in place for all CCPs, depending on whether they are systemically important for the EU or not.”

ESMA’s technical advice on tiering 

EMIR 2.2 introduces a set of criteria to be considered by ESMA to determine whether a TC-CCP is systemically important or likely to become systemically important for the financial stability of the EU or of one of its Member States, a Tier 2 TC-CCP. Where a TC-CCP has not been determined as being Tier 2, it will be a Tier 1. 

ESMA’s advice proposes a range of indicators to be considered in determining a TC-CCP’s tiering and provides guidance on what it may consider in this assessment.

ESMA’s technical advice on comparable compliance

The two-tier regime introduced with EMIR 2.2 requires that a Tier 2 TC-CCP must comply, at recognition and on an on-going basis, with all CCP requirements under EMIR in addition to the requirements of its home country.

However, comparable compliance allows a Tier 2 TC-CCP to comply with EMIR requirements by complying with the regulations and requirements of its home country, subject to a specific assessment by ESMA. In practice, to benefit from comparable compliance, Tier 2 TC-CCPs will have to evidence how compliance with the requirements applicable in their home country also satisfies the requirements under EMIR.     

ESMA’s technical advice on fees charged to TC-CCPs

EMIR 2.2 requires TC-CCPs that operate in the EU to pay fees to cover for the relevant supervisory and administrative costs. ESMA’s advice details the fees ESMA will charge for each category of TC-CCPs, as well as the payments and reimbursement conditions. This includes fees for recognition and withdrawel of TC-CCP recognition, annual fees, and fees for comparable compliance assessments.

Next steps

ESMA has sent its advice to the EC for the development of the corresponding Delegated Acts under EMIR 2.2, on which the EC will consult publicly before it finalises them.

SFTR Reporting

ESMA regulates securities financing activities by setting out reporting requirements, data access, collection, verification, aggregation, comparison and publication of data on securities financing transactions (SFTs) by trade repositories (TRs). The Securities Financing Transactions Regulation (SFTR) is the main piece of EU legislation in this area.

The European Securities and Markets Authority (ESMA) has today published the results of a peer review it conducted into supervisory actions of six National Competent Authorities (NCAs) regarding their approaches at enhancing the quality of derivative data reported under the European Market Infrastructure Regulation (EMIR). 

This peer review complements ESMA’s Data Quality Action Plan (DQAP) in order to further improve the quality and usability of derivatives data.       

The review was targeted at those six NCAs who supervise important derivative markets in the European Union (EU) and have key counterparties reporting their derivative trades to EU Trade Repositories, namely:

  1. the Netherlands Authority for the Financial Markets (AFM);
  2. the French Authority of the Financial Market (AMF);
  3. the German Federal Financial Supervisory Authority (BaFin);
  4. the Central Bank of Ireland (CBoI);
  5. the Cypriot Securities and Exchange Commission (CySEC); and
  6. the UK Financial Conduct Authority (FCA).

In addition, ESMA was reviewed in its role as direct supervisor of Trade Repositories (TRs).

Review finds differences across Member States



The peer review assessed how the six Authorities supervised data quality under EMIR in the following areas:

  • NCAs’ supervisory approach to EMIR data quality;
  • Integration of EMIR data within the NCA’s overall supervisory approach; and
  • NCAs’ access, assessment and analysis of EMIR data quality.

The review delivered mixed results for the six NCAs. The majority of NCAs had a supervisory approach to EMIR data quality in place. However, two NCAs lagged behind when it comes to integrating EMIR data quality controls into their overall supervisory approach, which negatively impacted the NCAs’ ability to access, assess and analyse EMIR data.

ESMA identifies good practices and sets out plans to improve supervision of data quality    

The review also identified good supervisory practices by the six Authorities. These good practices should be considered by all NCAs and, where appropriate, incorporated into existing

supervisory approaches. ESMA has also put forward several initiatives to improve the supervision of EMIR’s data quality in the short and long-term. The short-term initiatives include: revising NCAs’ annual Data Quality Review exercises and identifying how NCAs can regularly use the data as part of their overall supervisory approach.


Under EMIR, counterparties established in the EU must report details of any derivative contract they have concluded, modified or terminated, to registered TRs, which are supervised by ESMA. The reporting obligations apply to all derivative transactions (both over the counter and exchange-traded and cleared and non-cleared) of all asset classes. One of the many objectives of EMIR is to aim to reduce and identify systemic and counterparty risk and help prevent future financial system collapse by providing regulators high quality data.

ESMA and NCAs jointly launched the Data Quality Action Plan (DQAP) in September 2014. The DQAP is a voluntary self-assessment exercise based on annually agreed assessment criteria, undertaken by NCAs and ESMA, to improve the quality of certain aspects of data quality. However, separate to this exercise, ESMA decided in 2018 to conduct a peer review on supervisory actions aiming at enhancing the quality of data reported under EMIR. Undertaking a peer review is an additional tool available to improve data quality.