According to Article 9(1) of the Regulation on improving securities settlement and regulating central securities depositories (CSDR), settlement internalisers shall report to the competent authorities of their place of establishment on a quarterly basis the aggregated volume and value of all securities transactions that they settle outside securities settlement systems. Competent authorities shall, without delay, transmit the information received to the European Securities and Markets Authority (ESMA) and shall inform ESMA of any potential risk resulting from that settlement activity.
Commission Delegated Regulation (EU) 2017/391 further specifies the content of the internalised settlement reporting, while Commission Implementing Regulation (EU) 2017/393 specifies the templates and procedures for the reporting and transmission of information on internalised settlement.
In order to ensure the common, uniform and consistent application of Article 9 CSDR, ESMA has now issued a consultation paper containing draft guidelines on internalised settlement reporting and on the exchange of information between competent authorities and ESMA regarding internalised settlement. In order to ensure a consistent implementation of the relevant provisions of the Commission Delegated Regulation (EU) 2017/391, the draft guidelines clarify the scope of the data to be reported by settlement internalisers and the type of transactions and operations that should or should not be included.
When finalised the guidelines will apply to competent authorities designated under Article 11 of the CSDR and to settlement internalisers as defined in Article 2(1)(11) of the CSDR.
The deadline for responses on the consultation paper is 14 September 2017. ESMA will consider the feedback it will receive with a view to finalising the guidelines by Q1 2018. The guidelines apply from the date of their publication on ESMA’s website in all official languages of the EU.
View ESMA consults on guidelines on internalised settlement reporting under CSDR, 10 July 2017