ESMA to Focus on TR Data, Cybersecurity and Brexit in 2019

Everyone's favorite financial regulator, the European Securities and Markets Authority, released a report this Tuesday detailing its plans for the year 2019.

In one of its many lengthy documents, the regulator said that it was going to be focusing its efforts on ensuring components of the European Market Infrastructure Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term are adhered to.

More specifically, the pan-European regulator said that it is going to be looking at the quality of data that Trade Repositories (TR) gather and how accessible that data is to local authorities.

ESMA also said that it plans on looking at TRs IT processes and their system reliability.

For those unfamiliar with TRs, they are companies that gather sets of derivatives trading data. That includes both over-the-counter and on-exchange derivatives trading.

Improving cybersecurity

Aside from TRs, ESMA also said that it would be looking at cybersecurity procedures at credit risk agencies (CRAs) this year.

"Building on similar exercises with TRs and CCPs [central counterparty clearing houses]," said the regulator, "ESMA will survey a subset of CRAs with the aim to assess the current state of the cybersecurity risk environment."

More pertinently for this week, given the never-ending news story that is Brexit Brexit Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Read this Term, the European regulator also said one of its main tasks for the next ten months would be dealing with the UK's exit from the European Union.

ESMA said that it would have to spend some time working out whether or not to recognize CCPs based in the UK if the country leaves the EU without a deal.

This point seems somewhat redundant given that the regulator has already recognized three major CCPs operating in the UK. On Monday of this week, LCH Limited, ICE Clear Europe Limited, and LME Clear Limited were all given the green light by ESMA to continue operating in the EU even if the UK leaves the political body with no deal.