The European Securities and Markets Authority (ESMA) has published its work programme for 2017 relating to its supervision of credit rating agencies (CRAs), trade repositories (TRs) and its monitoring of third country central counterparties (CCPs). The document outlines at a high level the supervisory activities ESMA took in 2016 regarding CRAs and TRs and outlines its main priorities in these areas for 2017.
In relation to TR supervision, ESMA’s priorities include:
- data quality and access by authorities;
- technology trends and internal control; and
- strategy and governance.
In relation to CRA supervision, ESMA’s priorities include:
- quality of credit ratings;
- IT and internal controls;
- strategy and governance; and
- risk assessment and data.
In addition, ESMA will perform further work on common issues across TRs and CRAs including fees charged for both core and ancillary services and information security.
In relation to third country CCPs, ESMA’s priorities include:
- assessment of the 21 pending applications for recognition as third country CCPs;
- review the classes of over-the-counter derivatives cleared by recognised third country CCPs; and
- finalisation of the risk based analysis framework in relation to third country CCPs’ activity in the EU.