European Securities and Markets Authority Consults on Guidelines on Internalised Settlement Reporting Under the Central Securities Depositaries Regulation

The European Securities Markets Authority has published a consultation on proposed guidelines to ensure common, uniform and consistent application of the provisions of the Central Securities Depositaries Regulation that apply to internalized settlement reporting and to the exchange of information between ESMA and national regulators.

Under CSDR, "settlement internalisers", who settle transactions outside a settlement system, must report quarterly to their national regulators the aggregated volume and value of securities transactions they have settled in this way. The national regulators have an obligation to transmit this information on to ESMA and to inform ESMA of any potential risk resulting from that settlement activity. The draft Guidelines cover: (i) the types of transactions and operations that should be considered both within and outside the scope of the reporting requirement; (ii) the entities responsible for reporting to national regulators; (iii) the data reporting parameters; (iv) the process national regulators should follow when submitting reports and risk information to ESMA; and (v) access to data by national regulators.

Comments on the draft Guidelines are invited by September 14, 2017, following which ESMA will review the feedback with a view to finalizing the Guidelines by Q1 2018.

View the Consultation Paper (ESMA70-151-45).