ESMA And SFC To Exchange Information On Derivative Contracts Held In Trade Repositories

The European Securities and Markets Authority (ESMA) and the Securities and Futures Commission (SFC) of Hong Kong have concluded a Memorandum of Understanding (MoU) that will allow the exchange of information on derivative contracts held in trade repositories. 

This MoU allows ESMA and SFC to have indirect access to trade repositories established in the European Union and Hong Kong respectively. It became effective on 19 November 2015.

In November 2014 and February 2015, ESMA has already concluded MoUs with the Australian Securities & Investments Commission (ASIC) and the Reserve Bank of Australia (RBA) providing for a direct access to TR data. However, the ESMA-SFC MoU is the first cooperation arrangement among authorities to establish an indirect access to TRs through exchanges of information. This follows the recommendation of the Financial Stability Board (FSB) to enter into this type of agreements to overcome legal barriers to accessing data on derivatives trades, for example when direct access by foreign authorities to TR data is not currently possible.