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ESMA Publishes Final Report on Fines for TRs

On 24 January 2014, the European Securities and Markets Authority (ESMA) published its Final Report detailing “Technical Advice to the Commission on procedural rules to impose fines and periodic penalty payments to Trade Repositories” (TRs).

Pursuant to Article 65 of EMIR, where ESMA finds that a TR has committed one of the infringements listed in Annex I of EMIR, it must impose a fine.  Pursuant to Article 66 of EMIR, ESMA must also impose periodic penalty payments in order to compel TRs to curtail any infringement or to comply with their EMIR obligations.

On 29 April 2013 ESMA received a formal request from the EU Commission to provide, by 31 December 2013, technical advice to assist the Commission in formulating procedural rules to impose fines and periodic penalty payments to trade repositories (TRs).  ESMA’s subsequent consultation paper was published on 18 October 2013, with a deadline for comments set at 15 November 2013.

The detailed procedure itself if not particularly noteworthy, with the exception of the Section V which clarifies that ESMA’s ability to impose fines and penalties on TRs should be subject to a limitation period of 5 years.

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