Golden Copy: The €64,000 Question
ESMA fine of DTCC for neglecting reporting is curiously low
![shashoua-2016-2 shashoua-2016-2](/sites/default/files/styles/landscape_750_463/public/import/IMG/018/339018/shashoua-2016-2.jpeg.webp?h=1ca8e626&itok=ZueanlpK)
The €64,000 fine levied by the European Securities and Markets Authority (ESMA) on the Depository Trust and Clearing Corporation (DTCC) on March 31 is a curious action indeed for a regulatory body whose lack of preparedness recently led to a one-year delay in the effective date of the revised Markets in Financial Instruments Directive (MiFID II) regulation.
ESMA stated that the fine was issued because the DTCC was negligent in failing to set up systems and, in turn, provide derivatives data to the authority as required under the European Market Infrastructure Regulation (EMIR).
Last year, a Dutch regulator, speaking about ESMA and EMIR issues, said there were issues with the quality of data provided to repositories, but at the same time said the volume of the data was so great that it was difficult to sort through it all and make sense of it. European regulators, in this instance, as with MiFID II reporting, lack the systems, personnel and wherewithal to handle what their rules demand.
To qualify as noteworthy, regulatory fines against the financial industry usually are in the millions or even billions of dollars. So, in that context, a €64,000 fine is significant because it's so low. One could read into this that ESMA leaders are conflicted about really punishing the DTCC for faults that their own organization has on an even bigger scale.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@waterstechnology.com or view our subscription options here: http://subscriptions.waterstechnology.com/subscribe
You are currently unable to print this content. Please contact info@waterstechnology.com to find out more.
You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@waterstechnology.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@waterstechnology.com
More on Regulation
Northern Trust offers internal fund accounting, data tools to clients
Regulations and a mandate to enhance quality and transparency in a bid to improve the investor experience are pushing buy-side firms to have more oversight of their third-party providers.
EU firms press for faster move to T+1 after smooth US rollout
Following the example set by North America, 70% of attendees at a European hearing on shorter settlement cycles favored a Q4 2027 switch to next-day settlement.
Finra clears hurdle with CAT launch, but several others remain
Two major components of the consolidated audit trail are now in place. But wrangling over the CAT’s future continues.
Bloomberg, industry bodies push back on Cboe’s proposed OEMS rule change
Some industry bodies disagree with the options exchange’s proposal to carve its Silexx OEMS out of the SEC’s definition of an exchange facility and place it into a separate business line.
GenAI: US Fed reveals its five use cases
Internal sandbox used to assess viability and risks; coding and content generation on the agenda.
Zeros and ones: Industry contemplates T+0 as the next step
With the North American transition to T+1 settlement complete, same-day settlement could be the next goalpost set, though skeptics are many.
The IMD Wrap: Déjà vu as exchange data industry weighs its options
Max highlights some of WatersTechnology’s recent reporting on data costs and capacity issues facing the options industry, and asks, haven’t we seen this before somewhere?
FRTB data quality issues persist amid shifting implementation dates
Banks are finding market and reference data challenges posed by the FRTB’s standardized model tricky, compounded by uncertainty over when the regulation will take effect.