ESMA releases consultation paper on CSDR settlement fails reporting

In order to ensure the consistent application of Article 7(1) of CSDR3 and Article 14 of the Commission Delegated Regulation (EU) 2018/12294, ESMA has decided to issue Guidelines on the scope, reporting architecture and exchange of information between ESMA and the competent authorities regarding settlement fails, based on the reports submitted by CSDs.

According to Article 7(1) of CSDR, for each securities settlement system it operates, a CSD shall establish a system that monitors settlement fails of transactions in financial instruments referred to in Article 5(1). It shall provide regular reports to the competent authority and relevant authorities, as to the number and details of settlement fails and any other relevant information, including the measures envisaged by CSDs and their participants to improve settlement efficiency. The competent authorities shall share with ESMA any relevant information on settlement fails.

The Commission Delegated Regulation (EU) 2018/1229 specifies the details of the reports on settlement fails referred to in Article 7(1) of CSDR.

In order to ensure the common, uniform and consistent application of Article 7(1) of CSDR and Article 14 of the Commission Delegated Regulation (EU) 2018/1229, ESMA has decided to issue Guidelines on the reporting architecture and exchange of information between ESMA and the competent authorities regarding settlement fails, based on the reports submitted by CSDs.

In order to ensure a consistent implementation of the relevant provisions of the Commission Delegated Regulation (EU) 2018/1229, the guidelines clarify the scope of the data to be reported by CSDs and the types of transactions and operations that should or should not be included.

ESMA invites comments on all matters in this paper and in particular on the specific questions summarised in Annex 1. Comments are most helpful if they:

  • respond to the question stated;
  • indicate the specific question to which the comment relates;
  • contain a clear rationale; and
  • describe any alternatives ESMA should consider.

ESMA will consider all comments received by 20 February 2019.

All contributions should be submitted online at www.esma.europa.eu  under the heading ‘Your input – Consultations’.

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