On 29 May 2026, the European Securities and Markets Authority (ESMA) published its Report on quality and use of data 2025, assessing the accuracy, completeness, and timeliness of data submitted by market participants under EU securities regulation. The report identifies persistent gaps in data quality, particularly in transaction reporting and reference data, which affect ESMA's ability to monitor market integrity and systemic risk.
The report, produced by ESMA's Data and Statistics Department, covers data submissions from 2024 and evaluates compliance with the Markets in Financial Instruments Regulation (MiFIR), the European Market Infrastructure Regulation (EMIR), and the Securities Financing Transactions Regulation (SFTR). It is a non-binding assessment that highlights both improvements and recurring deficiencies. While data timeliness has improved slightly, completeness remains a concern, with some firms failing to report all required fields. ESMA notes that poor data quality can lead to inaccurate risk assessments and hinder cross-market surveillance.
Trade-offs and stakeholder impact
The report's findings present trade-offs between regulatory oversight and industry compliance costs. For EU regulators, better data quality enhances market transparency and early detection of misconduct, but for market participants—especially smaller investment firms and trading venues—the burden of ensuring data accuracy can be significant. ESMA stops short of recommending new binding rules, instead urging national competent authorities to enforce existing requirements more rigorously. The report also calls on firms to invest in automated validation tools, which may increase operational costs but reduce long-term reporting errors.
Impact on stakeholders - EU regulators (ESMA and NCAs): Gain a clearer picture of data gaps, enabling targeted supervision, but face resource constraints in enforcing improvements. - Investment firms and banks: Must allocate resources to fix data quality issues, potentially increasing compliance costs, but benefit from reduced risk of fines and better internal data governance. - Trading venues: May need to upgrade reporting systems to meet ESMA's expectations, with moderate cost implications. - End-investors: Indirectly benefit from more accurate market data, which supports fair pricing and market confidence.
Institutional follow-up ESMA will continue to monitor data quality through its annual reports and bilateral engagement with national authorities. The European Commission may consider the findings in future reviews of MiFIR and EMIR, though no legislative action is imminent. Market participants are expected to address the identified gaps ahead of the next reporting cycle.
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