Esma defends dual reporting

摘要

The European requirement for both parties on a derivatives trade to report transaction details to a trade repository should remain in place, despite widespread opposition to the rule, according to new guidance from the European Securities and Markets Authority. The opinion was contained in one of four reports published by Esma last week as part of the continuing European Market Infrastructure Regulation review, in which the regulatory body opined on potential changes to rules in relation to non-financial counterparties, pro-cyclicality and CCP equivalence. "In principle, Esma believes that in Emir, double-sided reporting is preferable to now changing to single-sided reporting, as it also ensures better data quality," Esma said. "Obliging to report both sides of a trade guarantees that counterparties have systems in place to ensure that the values reported for each side of the trade are consistent and that any mismatch between the values reported is promptly identified and corrected."