July 14, 2021

UK-based trade repository fined €408,000 by EU for EMIR violations

On July 12, 2021, the European Securities and Markets Authority (ESMA) fined DTCC Derivatives Repository Plc (DDRL), a trade repository based in the UK, €408,000 for seven infringements of the European Market Infrastructure Regulation (EMIR) related to data confidentiality, data integrity and data accessibility by regulators.  The ESMA found that between 2014 and 2018, DDRL engaged in violations that enabled asset managers to access data that they were not entitled to receive; configured its IT system to alter the substance of certain information reported to DDRL; and failed to provide regulators with direct and immediate access to relevant data.

According to the Public Notice, DDRL was a trade repository with the largest market share in the EU (42 percent) before the UK’s withdrawal from the EU at the end of 2020.  However, in accordance with the Withdrawal Agreement, ESMA retained the right to fine DDRL because the agency appointed an Independent Investigating Officer (IIO) in September 2019, before the end of the transition period.  Following preliminary investigations, the ESMA concluded in 2019 that there were serious indications that DDLR had one or more EMIR infringements, and the matter was referred to an IIO whose investigation recently concluded in February of 2021.

DDRL has the right to appeal the decision to the Board of Appeal of the European Supervisory Authorities, but it can only seek to suspend the application of the decision under Article 60(3) ESMA Regulation, as these types of appeals have no suspensive effect.

ESMA Press Release | ESMA Public Notice | ESMA Decision