52. In the Consultation Paper ESMA recalled current practices for ensuring data quality and highlighted the shortcomings with regards to awareness of the NCAs about reporting issues that prevent the report submitting entity to send reports to the TR systems and also many reconciliation breaks that are not sufficiently effectively communicated and resolved between the counterparties reporting inconsistent data.

Notifications to NCAs of errors and omissions in reporting

53. ESMA, leveraging on similar requirement in MiFIR transaction reporting, proposed to establish a requirement for the counterparties to notify their NCAs of any error or omission within a derivative report, any failure to submit reports or reporting of a derivative for which there is no obligation to report, i.e. the cases of overreporting. At minimum the entities should notify the NCAs if they experience a problem (e.g. IT incident) that prevents them from submitting the reports to the TRs.

54. Two respondents disagreed with the provision of notifications if experiencing an issue preventing the submission of data to the TRs arguing that NCAs have access to the relevant TR reporting data. However, ESMA reminds that the information available via TRs does not cater for situations where the ability to submit data is compromised.