On 21 November 2022, the European Securities and Markets Authority (ESMA) published a final report on draft regulatory technical standards (RTS) amending Article 19 of Commission Delegated Regulation (EU) 2018/1229 (RTS on Settlement Discipline).
Between 11 July and 9 September 2022, ESMA conducted a public consultation seeking stakeholders’ views on possible amendments to the RTS on Settlement Discipline aimed at simplifying the process of collection and distribution of cash penalties for settlement fails relating to cleared transactions under the Central Securities Depositories Regulation (CSDR).
Having considered the responses received, ESMA has finalised its amending RTS which is included in this final report, as well as a feedback statement on the views expressed through the consultation.
ESMA’s draft RTS remove the separate process established in Article 19 of the RTS on Settlement Discipline for the collection and distribution of the cash penalties in relation to settlement fails on cleared transactions to put the central securities depositories in charge of the entire process of collection and distribution of penalties according to Articles 16, 17 and 18 of the same regulation.
ESMA will submit the draft RTS to the European Commission for endorsement in the form of a Commission Delegated Regulation.
Following the endorsement of the draft RTS by the Commission, the Commission Delegated Regulation will be subject to the non-objection of the European Parliament and of the Council.