EU & UK Reg Round Up: 24/04/2024

European Banking Authority 

DPM 2.0 standard in the works - 16 April 2024

The EBA, EIOPA, and ECB are all collaborating to create a data point model (DPM) alliance between the three regulatory bodies, and release DPM Standard 2.0. This is following last week’s update on how the EBA and ECB are working together to make data reporting more efficient, now they have stepped up the efforts to unify the DPM and are working to building an integrated reporting system.  For the EBA, the two DPMs will coexist during the transitional period to allow a smooth evolution for all stakeholders in regulatory processes.

EBA release annual assessment of banks’ internal approach for the calculation of capital requirements - 12 April 2024

The purpose of this assessment is to test the variance and consistency of risk weighted assets (RWAs) across all EU institutions authorised to use the internal approach to calculate their capital requirements. For the market risk exercise, the majority of the participating banks saw a relatively low dispersion in the initial market valuation of most instruments, and a decrease in the dispersion of the value at risk (VaR) submission, compared to last year. For the credit risk exercise, they found that the variability in the RWAs remained stable compared to last year’s exercise, but some asset classes saw a reduction.

European Securities and Markets Authority 

ESMA to release report showcasing how regulatory data is used across the EU - 11 April 2024

ESMA is set to publish its latest report, offering insights into how regulatory data is utilized across the EU. This report aims to provide transparency on the use of data collected under different regulations, showcasing its role in shaping supervision, enforcement, and policy making. The report will delve into how national competent authorities (NCAs), the ECB, ESRB, and ESMA leverage this data throughout the year. It highlights examples where engagement frameworks have improved data quality measurably while addressing persistent data quality issues.

ESMA published a follow-up report on how EMIR data quality is improving - 11 April 2024

Following the 2019 peer review aimed at improving data quality under EMIR, five national competent authorities (NCAs) from Cyprus, Germany, France, Ireland, and the Netherlands implemented these enhanced measures. These actions included the introduction of data quality dashboards, enhanced data checks, and integrating EMIR data into daily supervision activities. The findings reveal a significant improvement in supervisory practices, directly attributed to these measures.

ESAs to run voluntary exercise to prepare financial entities for the DORA implementation - 16 April 2024

The European Supervisory Authorities (EBA, EIOPA, and ESMA) have launched a voluntary exercise in May. This exercise aims to collect information on the registers of information of contractual arrangements using ICT third-party service providers by financial entities. Starting from 2025, financial entities will be required to maintain registers of information on their use of ICT third-party providers under the Digital Operational Resilience Act (DORA). The upcoming dry run exercise will gather this information from financial entities through their competent authorities, preparing them for DORA implementation and reporting.