On 26 May 2026, the European Securities and Markets Authority (ESMA) issued a consultation paper updating the guidelines on standardised procedures and messaging protocols used between investment firms and their professional clients under Article 6(2) of the Central Securities Depositories Regulation (CSDR).
Article 6(2) of the CSDR requires investment firms to establish arrangements with their professional clients to ensure the timely settlement of securities transactions, which mostly concern arrangements for the communication of allocations and confirmations and are further developed by Articles 2 and 3 of Commission Delegated Regulation (EU) 2018/1229 on settlement discipline (RTS on Settlement Discipline). Article 6(2) of CSDR mandates ESMA to develop guidelines on the standardised procedures and messaging protocols to be used between investment firms and their professional clients.
ESMA is reviewing the guidelines as part of its work to support market participants in preparing for the transition to a T+1 settlement cycle. The updates are intended to make post-trade communication faster, clearer and more consistent across the EU. They reflect the amendments proposed in ESMA’s final report on amendments to the RTS on Settlement Discipline.
Key changes include:
- Reflecting the mandatory use of electronic, standardised communication channels and international messaging standards.
- Removing references to non-electronic and non-machine-readable communication methods, such as oral allocations and confirmations, except in cases of temporary technical disruptions.
Next steps
The deadline for comments on the consultation paper is 7 July 2026.
ESMA will then consider the feedback received and expects to publish the final report including updated guidelines by October 2026.
The revised guidelines should apply from 7 December 2026, in alignment with the expected date of application of the proposed new requirements for allocations and confirmations under the RTS on Settlement Discipline.