ESMA reports on how national authorities tackle EMIR violations

The European Securities and Markets Authority (ESMA) has issued today its first annual report regarding supervisory measures carried out and penalties imposed by national competent authorities (NCAs) under the European Market Infrastructure Regulation (EMIR). The report focuses in particular on the supervisory actions undertaken by NCAs, their supervisory powers and the interaction between NCAs and market participants when monitoring the compliance of the following EMIR requirements:

  • the clearing obligation for certain OTC derivatives (Art. 4 EMIR);
  • the reporting obligation of derivative transactions to TRs (Art. 9 EMIR);
  • requirements for non-financial counterparties (Art. 10 EMIR); and
  • Risk mitigation techniques for non-cleared OTC derivatives (Art. 11 EMIR).
  • The survey’s feedback shows that there are three main enforcement powers shared by a great majority of the NCAs, (a) the power to impose administrative fines; (b) to issue binding letters; and (c) non-binding letters or recommendations. Around 31% of the countries (Cyprus, Hungary, Ireland, Norway, Spain, the Slovak Republic and the United Kingdom) also mentioned that they have criminal penalties in place for infringements of EMIR provisions.

    Read the full report

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