ESMA sets out CSDR standardised procedures and messaging protocols guidelines
08 October 2019 Paris
Image: Shutterstock
The European Securities and Markets Authority (ESMA) has set guidelines on standardised procedures and messaging protocols to clarify the scope of requirements included in Article 6(2) of the Central Securities Depositories Regulation (CSDR).
The requirement in Article 6(2) of CSDR is focused on the preparation of the settlement process in order to limit the number of settlement fails.
ESMA’s drafted final guidelines set out how investment firms should ensure the requirements set out in Article 6(2) and Article 2 of the regulatory technical standards (RTS) on settlement discipline are complied with.
Investment firms are expected to take measures to limit the number of settlement fails and to, at least, set up arrangements with their professional clients to ensure prompt communication of the necessary settlement information.
The guidelines also clarify the degree of flexibility that is left to the parties to organise their communication.
In addition, the guidelines will be translated into the official languages of the EU and published on the ESMA website. They will start applying on the date of entry into force of the RTS on settlement discipline.
The requirement in Article 6(2) of CSDR is focused on the preparation of the settlement process in order to limit the number of settlement fails.
ESMA’s drafted final guidelines set out how investment firms should ensure the requirements set out in Article 6(2) and Article 2 of the regulatory technical standards (RTS) on settlement discipline are complied with.
Investment firms are expected to take measures to limit the number of settlement fails and to, at least, set up arrangements with their professional clients to ensure prompt communication of the necessary settlement information.
The guidelines also clarify the degree of flexibility that is left to the parties to organise their communication.
In addition, the guidelines will be translated into the official languages of the EU and published on the ESMA website. They will start applying on the date of entry into force of the RTS on settlement discipline.
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