European Securities and Markets Authority fines REGIS-TR EUR 1,374,000 for EMIR and SFTR trade repository infringements and orders remediation

The European Securities and Markets Authority has fined trade repository REGIS-TR, S.A. a total of EUR 1,374,000 for seven infringements of the European Market Infrastructure Regulation (EMIR) and the Securities Financing Transactions Regulation (SFTR), issued a public notice, and ordered the firm to end ongoing breaches. The case is ESMA’s first enforcement action involving SFTR breaches and its highest fine imposed on a trade repository to date. The findings cover serious, long-lasting issues affecting REGIS-TR’s EMIR and SFTR services, including problems that undermined the implementation of the SFTR reporting regime and compromised the confidentiality of trade repository data. ESMA identified deficiencies in policies and procedures leading to unclear governance roles and responsibilities, shortcomings in organisational structure that did not ensure continuity and orderly functioning for SFTR services, and failures to identify and mitigate operational risks through appropriate systems, controls and procedures. It also found breaches of EMIR requirements to ensure the confidentiality, integrity and protection of information and to prevent misuse of information maintained in REGIS-TR systems; ESMA attributed the infringements to negligence and applied EMIR aggravating and mitigating factors when setting the fine. ESMA required REGIS-TR to remedy three infringements that had not yet been remediated, relating to EMIR and SFTR policies and procedures and SFTR organisational structure for business continuity.