The European Securities and Markets Authority (ESMA) has fined the trade repository (TR) REGIS-TR, S.A. a total of EUR 1,374,000 for seven infringements under the European Market Infrastructure Regulation (EMIR) and the Securities Financing Transactions Regulation (SFTR).

While ESMA has sanctioned EMIR breaches in the past, this is the first enforcement case involving SFTR breaches and the highest fine imposed by ESMA on a trade repository so far. ESMA has also issued a public notice and requires REGIS-TR to bring ongoing infringements to an end.

ESMA found that REGIS-TR did not comply with key organisational obligations laid down in EMIR and SFTR relating to adequate policies and procedures, organisational structure, and operational risk, as well as specific requirements related to confidentiality and misuse of the information.

The seven breaches specifically relate to:

• deficiencies in REGIS-TR’s policies and procedures under both EMIR and SFTR leading, among other things, to a lack of clarity regarding the roles and responsibilities of the governing bodies;
• shortcomings in REGIS-TR’s organisational structure which did not ensure continuity and orderly functioning of the TR in the performance of its services and activities in relation to SFTR;
• the failure by REGIS-TR to identify sources of operational risk and minimise them through the development of appropriate systems, controls and procedures both in relation to EMIR and SFTR;
• the failure by REGIS-TR to ensure the confidentiality, integrity and protection of information received under EMIR;
• the failure by REGIS-TR to prevent any misuse of information received and maintained in its systems under EMIR.

The breaches were found to have resulted from negligence on the part of REGIS-TR. In calculating the fine, ESMA considered aggravating and mitigating factors provided for in EMIR.

ESMA also required REGIS-TR to bring the three infringements that have not been remediated yet (related to policies and procedures under EMIR and SFTR and organisational structure for business continuity under SFTR) to an end.