DTCC Derivatives Repository Limited (DDRL)

Administrative sanction and measure

The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, has fined DTCC Derivatives Repository Plc (DDRL) a total of €408,000 for seven infringements of the European Market Infrastructure Regulation (EMIR) regarding data confidentiality, data integrity, and direct and immediate access to data. The breaches relate to: • granting certain asset managers access to data that they were not entitled to receive; • setting up its IT system in a way which altered the substance of certain information reported to DDRL; and • failing to provide regulators with direct and immediate access to relevant data. The breaches, which were committed between 2014 and 2018, were found to have resulted from negligence on the part of DDRL.

registers.esma.europa.eu

Administrative sanction and measure

On 23 March 2016, the European Securities and Markets Authority (ESMA) has fined the trade repository DTCC Derivatives Repository Limited (DDRL) €64,000, and issued a public notice, for negligently failing to put in place systems capable of providing regulators with direct and immediate access to derivatives trading data. This is a key requirement under the European Markets and Infrastructure Regulation (EMIR) in order to improve transparency and facilitate the monitoring of systemic risks in derivatives markets. This is the first time ESMA has taken enforcement action against a trade repository registered in the European Union (EU). DDRL is the largest EU registered trade repository. ESMA found that DDRL failed to provide direct and immediate access to derivatives data from 21 March 2014 to 15 December 2014, a period of about nine months in which access delays increased from two days to 62 days after reporting and affected 2.6 billion reports. This was due to its negligence in: - failing to put in place data processing systems that were capable of providing regulators with direct and immediate access to reported data; - failing, once they became aware, to inform ESMA in a timely manner of the delays that were occurring; and - taking three months to establish an effective remedial action plan even while delays were worsening. DDRL’s failures caused delays to regulators accessing data, revealed systemic weaknesses in its organisation particularly its procedures, management systems or internal controls and negatively impacted the quality of the data it maintained.

registers.esma.europa.eu