TRs centrally collect and maintain the records of derivative trades and play a central role in enhancing the transparency of derivative markets and reducing risks to financial stability. In November 2013, ESMA registered six TRs. The obligation for counterparties to report their derivative trades to registered TRs began on 12 February 2014.
Under Titles VI and VII of Regulation EU 648/2012 (EMIR), the direct supervision of TRs has been entrusted to ESMA, who has started to supervise the six registered TRs. Supervision of TRs by ESMA is crucial to ensuring that TRs comply on an on-going basis with all EMIR requirements, thereby enabling regulators to access data and details of derivative contracts in order for them to fulfil their respective mandates.
Activities that ESMA expects to perform in 2014 in terms of on-going TR supervision include (non-exhaustive list):
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monitoring and assessment of periodical information received from TRs;
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monitoring and assessment of notifications by TRs of material changes to their conditions for registration;
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analysis of external information received from authorities or complainants; and
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requests for information, etc.
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