ESMA issues guidelines on CSD data reporting

The European Securities and Markets Authority (ESMA) has published today two sets of guidelines providing further details on the implementation of the Central Securities Depositories Regulation (CSDR).

Both guidelines are accompanied by reporting templates in order to facilitate the reporting of data by CSDs to the competent authorities, and subsequently by the competent authorities to ESMA.

The CSDR establishes various cooperation measures for the cases where a CSD provides its services cross-border and becomes of substantial importance for the functioning of the securities markets and the protection of the investors in the host Member State.

According to CSDR, the central banks in the Union issuing the most relevant currencies in which settlement takes place should be involved in the authorisation and supervision of CSDs where specifically referred to in the CSDR.

Given the need to use consistent data aggregated at EU level for the calculation of the respective indicators, ESMA has decided to issue Guidelines on the process for the collection, processing and aggregation of the data and information necessary for the calculation of the indicators to determine:

The guidelines also clarify the scope of the data to be reported for the purpose of the calculation of different indicators, by providing examples regarding the types of transactions and operations that should or should not be included.

Having regard to ESMA’s task to contribute to the consistent application of legally binding Union acts, ESMA will undertake a coordination role in the process of centralising and aggregating the data received from CSDs, including central banks acting as CSDs. This will enable the competent authorities in performing the calculations for the indicators based on the data centralised and aggregated by ESMA.

ESMA’s guidelines support the consistent application of the CSDR, in particular by contributing to a common supervisory culture through the establishment of consistent, efficient and effective supervisory practices.

Background

The aim of CSDR is to harmonise certain aspects of the settlement cycle and settlement discipline and to provide a set of common requirements for CSDs operating securities settlement systems across the EU. CSDR plays a pivotal role for post-trade harmonisation efforts in Europe, as it enhances the legal and operational conditions for cross-border settlement in the EU.

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