On 9 July 2024, the European Securities and Markets Authority (ESMA) issued the following consultation papers on the Central Securities Depositories Regulation (CSDR) Refit:

  • Consultation paper on the draft regulatory technical standards (RTS) on the information notified by third-country central securities depositories (TC CSDs). CSDR Refit introduces two mandates for ESMA to draft RTS in relation to the information that TC CSDs will be required to notify to ESMA. One is contained in Article 25(13) and the other in Article 69(4a), with Recital 27 further specifying their rationale. In summary, TC CSDs are required to notify information to ESMA when they: (i) provide/intend to provide settlement services in relation to financial instruments constituted under the law of a Member State, with subsequent information from ESMA to that Member State; and (ii) provide notary and central maintenance services in relation to financial instruments constituted under the law of an EU Member State pursuant to applicable national rules on recognition of TC CSDs, i.e. in the absence of an EU decision on recognition. The deadline for comments on the consultation paper is 9 September 2024. ESMA will consider the feedback to the consultation paper in Q4 2024 and expects to publish a final report and submit the draft technical standards to the European Commission (Commission) for endorsement by 17 January 2025.
  • Consultation paper on the technical advice on the scope of CSDR settlement discipline. Article 7(9) of CSDR, as amended by CSDR Refit, empowers the Commission to adopt delegated acts to supplement the CSDR by specifying: (i) the underlying causes of settlement fails that are considered as not attributable to the participants in the transaction; and (ii) the circumstances in which operations are not considered as trading. ESMA has prepared this consultation paper to consult interested parties for the purpose of elaborating the technical advice to be submitted to the Commission. The deadline for comments on the consultation paper is 9 September 2024. ESMA will consider the feedback received to the consultation paper and expects to publish a final report and submit its technical advice to the Commission by 31 December 2024.
  • Consultation paper on the draft technical standards amending Regulation (EU) 2017/392 and Regulation (EU) 2017/394 under CSDR on review and evaluation (R&E). The draft RTS are developed per Article 22(10) of the CSDR, as amended by CSDR Refit, and specify: (i) the information that the CSD is to provide to its Member State competent authority for the purposes of the R&E; (ii) the information that the Member State competent authority is to supply to the relevant authorities, ESMA and, where appliable, the college of supervisors and the competent authority under Directive 2014/65/EU under Article 22(7) of the CSDR; and (iii) the information Member State competent authorities of CSDs belonging to groups are to supply to one another. The draft implementing technical standards cover standard forms, templates and procedures for the provision of information referred to in the draft RTS. ESMA suggests developing these draft RTS and ITS as amending regulations to the existing Commission Delegated Regulation (EU) 2017/392 and Commission Implementation Regulation (EU) 2017/394 which already covered similar mandates under CSDR. The deadline for comments on the consultation paper is 9 September 2024. ESMA will consider the feedback to the consultation paper in Q4 2024 and expects to publish a final report and submit the draft technical standards to the Commission for endorsement by 17 January 2025.