350. A key element for the correct functioning of the reporting regime under EMIR and ensuring the quality of derivative reporting is the validation by TRs of the data submission by the counterparties that are subject to the reporting obligation. Although Article 9(1e) EMIR as amended by EMIR REFIT, provides that “Counterparties and CCPs that are required to report the details of derivative contracts shall ensure that such details are reported correctly and without duplication.“, EMIR also places responsibility regarding the completeness and correctness of data on the TRs. Moreover, in accordance with Article 78(9) EMIR as amended by EMIR REFIT TRs are required to have in place “procedures to verify the completeness and correctness of the data reported”. Then the empowerment under Article 78(10) EMIR as amended by EMIR REFIT specifically establishes which aspects the procedures should cover, namely “the procedures to be applied by the trade repository to verify the compliance by the reporting counterparty or submitting entity with the reporting requirements and to verify the completeness and correctness of the data reported under Article 9.“

351. ESMA proposes below the detailed characteristics of the relevant practical rules for data validation. All the reference below made to the report submitting entity are to better identify the entity that would report to the TR, notwithstanding the fact that it can be at the same time either the reporting counterparty or the entity responsible for reporting. The rules cover the following aspects: