The European Securities and Markets Authority is launching a crackdown on derivatives trade reporting breaches, in response to concerns over the poor quality of data collected under major reforms to the market.

From February 12, firms have been required to report derivatives trades to so-called trade repositories as part of the European Market Infrastructure Regulation. The regime was designed to improve transparency in the swaps market, but it has suffered a rocky start as the market has grappled with what needs to be reported and how and when this should be done.