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ESMA Data Strategy Proposes More Tech, Less Cost in Reporting Compliance

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The European Securities and Markets Authority (ESMA) has published its data strategy for 2023 to 2028. Key agenda points include using new data-related technologies, reducing reporting compliance costs for regulated entities, enabling effective use of data at both EU and national level, and making data more broadly available to the public.

The five-year ESMA data strategy follows the UK Financial Conduct Authority’s (FCA) latest update on its data strategy that was set out by Lauren Dixon, senior manager of data collection at the FCA, at A-Team Group’s recent Data Management Summit London.

On the ESMA strategy, chair Verena Ross, says: “I am pleased to present our new data strategy through which ESMA will strengthen its role both as a supervisor and as a data and information hub in the EU. We want to contribute to reducing the compliance burden for companies and

facilitate data reporting by means of increased standardisation and the use of modern IT solutions across the reporting process and the entire data lifecycle.”

Over the next five years, ESMA intends to:

  • Become an enhanced data hub that bolsters ESMA as an EU securities markets data hub focusing on improved data and information accessibility, interoperability and usability, and synergies and economies of scale
  • Ensure access to data of public interest by providing easily accessible and usable information to market participants in machine readable formats and via user-friendly search and analytical interfaces
  • Promote data-driven supervision through joint developments and use of novel technologies
  • Increase data collaboration by achieving better data standardisation, quality and reusability, and promoting the adoption of innovative technologies.
  • Produce efficient data policy output to reduce the compliance burden for reporting entities by reducing duplicative and inconsistent requirements, optimising reporting flows, offering effective and efficient data sharing, and exploiting emerging technologies
  • Facilitate systematic data use by establishing processes, methodologies and tools enabling systematic use of data for evidence-based policy development, supervision and risk assessment.

Commenting on the data strategy from an industry perspective, Yann Bloch, head of product at NeoXam, says: “ESMA’s data strategy is reflective of much broader market trends towards more consistent data reporting standards, a rising demand for high quality data, and an increasing emphasis on standardisation. This strategy report is surely a step in the right direction – the goals outlined are shared by many market participants, with a rising number putting greater focus on their own internal data architectures and processes.”

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