COMMISSION OPINION

of 14 November 2014

on the draft Regulation of the European Central Bank concerning statistics on the money markets

2014/C 407/01

Introduction

On 8 September 2014, the Commission received a request from the European Central Bank (ECB) for an opinion on a draft new Regulation on money market statistics.

The Commission welcomes this request and recognises that the ECB hereby acts in accordance with its obligation to consult the Commission on draft ECB regulations whenever links with the statistical requirements of the Commission exist as laid down in Article 5(2) of Council Regulation (EC) No 2533/98 of 23 November 1998 concerning the collection of statistical information by the ECB(1), in order to guarantee the coherence necessary to produce statistics meeting the respective information requirements of the ECB and of the Commission. A good cooperation between the ECB and the Commission is beneficial for both institutions as well as for users and respondents by allowing a more efficient production of European statistics. The Commission also welcomes that explicit reference is made to its opinion in this regulation.

The Commission welcomes the initiative of the ECB to collect data on money markets. The Commission supports any effort to increase the transparency of these markets and recognise the need for data to build reliable and well-founded benchmarks in line with the recent guidelines issued by the International Organization of Securities Commissions (IOSCO) and the European Banking Authority (EBA).

The merits of the proposal are clear and significant and are important for a wide set of stakeholders and for different purposes: monetary policy analysis, construction of interest rate benchmarks, banking supervisory tasks, policy analysis and transparency of these markets. All are crucial for the proper working of the financial system.

The Commission considers it important that any data to be collected by the ECB on money markets through this Regulation is made available to other relevant Union authorities for the exercise of their duties.

The proposed data collection is from monetary financial institutions (MFIs). The Commission is concerned that the MFI list contains units which are not active deposit-takers, and stresses that statistical principles should be adhered to.

Comments on and proposed changes to the legislative proposal

This initiative will require the reporting of a variety of money market transactions such as unsecured debt instruments, certain short-term securities financing transactions (e.g. repos, buy-sell backs) and derivatives. Thus, the reporting will allow the ECB to fulfil its task to produce comprehensive, detailed and harmonised statistical data on euro-area money markets.

This initiative is closely related to two key legislative developments in the EU:

— The proposal for a Regulation of the European Parliament and of the Council on reporting and transparency of securities financing transactions (SFT), COM(2014) 40 final of 29.1.2014:

Once adopted the Regulation will require the EU-wide reporting of the details of any securities financing transaction concluded in the EU, including short-term repos and sell-buy backs, to a trade repository. EU central banks as well as other competent authorities will have access to all the data necessary to fulfil their responsibilities. As the reporting is expected to enter into force after 2017, it is crucial to avoid duplicative reporting requirements on market participants.

— Regulation (EU) No 648/2012 of the European Parliament and of the Council of 4 July 2012 on OTC derivatives, central counterparties and trade repositories(2):

It is similarly fundamental to avoid imposing duplicative reporting requirements on market participants for derivatives transactions. To this end, the ECB initiative should take into account the already available data in trade repositories and require only the necessary data elements missing for the needs of statistics production.

Considering the need to avoid duplicative reporting obligations, and taking into account the forthcoming entry into force of a Regulation on reporting and transparency of SFT, it is proposed that Article 11 be amended to specify that regular updates, after the initial first review, could be shorter than intervals of two years, where new similar reporting requirements imposed by EU law enter into force. In support of this amendment it is similarly proposed that a new recital is introduced specifying that, in cases where the details of a securities financing transaction or a derivative contract have already been reported to a trade repository, and provided that the ECB has effective access to the details of these transactions, the reporting requirements set out in the ECB Regulation concerning statistics on the money markets are considered to have been complied with.

Conclusion

The Commission generally supports the draft regulation in so far as it contributes to the collection of reliable financial market statistics at European level, of high importance to stakeholders which include the Commission itself.

The Commission, however, is of the opinion that the issues mentioned above should be addressed.

Done at Brussels, 14 November 2014.

For the Commission

Marianne THYSSEN

Member of the Commission

(1)  

OJ L 318, 27.11.1998, p. 8

.

(2)  

OJ L 201, 27.7.2012, p. 1

.