Irina Bussoli – Page 12

ECSDA answers ESMA on settlement fails reporting

The European Central Securities Depository Association (ECSDA) welcomes the issuance of this Consultation Paper on the guidelines of Fails reporting under Article 7(1).

As we share the need of addressing some discrepancies and pitfalls in the fails reporting, we thank ESMA for having taken this initiative of harmonising the fails reporting requirements. Beyond the mere purposes of the settlement fails reporting, the proposed guidelines also influence certain provisions related to settlement discipline measures.

We would like to use the opportunity of the consultation:
1. to provide feedback on the most important aspects of the regulatory reporting, as well as
2. to stress the relevance of some issues, which are not tackled in the consultation paper.

Main points on the regulatory reporting:

I. We would generally advise to carefully balance costs vs. benefits of the reporting and limit the granularity of the information to what is fundamentally necessary for further actions of competent authorities.

II. We stress the fundamental importance of having more clarity on the instrument and instruction scope of the fails reporting, as well as the scope of other settlement discipline measures.

III. We believe that the scope of the requirements should be limited to transactions in financial instruments which the parties settle in an EU CSD. Hence, transactions where the actual place of settlement is outside of an EU CSD should be considered as out of scope of the reporting by EU (Investor-)CSDs.

IV. We would kindly ask for providing the definition of the ISO 20022 or XML message (draft) format to be used for reporting, as soon as possible and ahead of the issuance of the final version of these guidelines. Else, we fear that the timely compliance with the guidelines would be at risk.

Read the full document.

ECSDA meets stakeholders on CSDR Penalties Framework

On Monday 18 February ECSDA had a dialogue with stakeholders on the ECSDA CSDR Penalties Framework. Updated version 17 April 2020

The workshop gave the opportunity to various industry associations to provide valuable input and questions that ECSDA will take into consideration for the next version of its framework document.

ECSDA slides
SWIFT slides

ESMA – Bank of England MOU on no-deal Brexit for CSDs & CCPs

On 4 February 2019, the European Securities and Markets Authority (ESMA) has agreed Memoranda of Understanding (MoUs) with the Bank of England (BoE) for the recognition of central counterparties and of the central securities depository established in the United Kingdom (UK), that would take effect should the UK leave the European Union (EU) without a withdrawal agreement, the no-deal Brexit scenario.

Read the full release.

CDCP, Slovak CSD is granted CSDR licence

The National Bank of Slovakia granted Centrálny depozitár cenných papierov SR, a.s. (CDCP) the authorisation for operation in compliance with valid European legal regulation effective from 28 January 2019. Granted authorisation directly relates to new European legal regulation harmonising requirements for organisation and certain aspects of operation of central securities depositories established in the European Union (EU). Therefore CDCP as the central securities depository operating in EU is subject to identical and directly applicable requirements, standards and rules and will provide harmonised scope of services.

Please see the full press release

The list of CSDs authorised under the CSDR is provided on CSD Facts page of the website.

Updated ECSDA CSDR Penalties Framework

On 29 January, ECSDA published the updated version of the ECSDA CSDR Penalties Framework.

This version of the ECSDA Framework is based on the comments received during the public consultation in the summer 2018, further deep reflection among CSD experts and includes the confirmation of some working assumptions by relevant European authorities.

The “ECSDA CSDR Penalties Framework”, is the effort of compliance with the CSD Regulation. It aims at harmonisation of settlement penalties mechanisms across CSDs subject to CSDR or (potentially) equivalent regulation. It intends to provide a clear, safe and efficient Framework for settlement penalties solutions of CSDs, both the ones that will be using T2S penalties mechanism and other CSDs.

This updated version of the document will be presented and discussed with the main stakeholders on 18 February in Frankfurt. If you have comments on the Framework and an interest to attend the event, please let us know and we will check, if the capacity allows us to invite you to join.

Updated version 17 April 2020

CSD Prague is granted CSDR licence

On 20 December, the Central Securities Depository Prague received the licence required by the new European CSD Regulation (CSDR), thus becoming yet another European depository in possession of the pan-European CSD licence.

The Central Securities Depository Prague has received the licence from the Czech National Bank to pursue the activities of a central depository under the harmonized European regulation implemented by the CSDR. The decision becomes legally effective on 21 December. In addition to the CSDR, the activities of the CSD Prague and its participants will also be subject to the provisions of the Act on Capital Market Undertakings, as amended.

Please see the full press release

The list of CSDs authorised under the CSDR is provided on CSD Facts page of the website.

ECB publishes FMI cyber resilience expectations

On 3 december 2018, The ECB published the Cyber Resilience Oversight Expectations (CROE) for Financial Market Infrastructures (FMIs) following the public consultation launched from April to June 2018.

The CROE aims at providing FMIs with detailed steps on how to operationalize the Guidance on cyber resilience for FMIs published by CPMI-IOSCO in June 2016, at providing the basis for a discussion between FMIs and their overseers, and it incorporates the comments received during the consultation.

Besides, the CROE presents five primary risk managements categories and components that should be addressed through an FMIs’ cyber resilience framework. These categories are:

governance;
identification;
protection;
detection;
response & recovery.

Read the full document

Read the full response to the public consultation

ECSDA welcomes ID2S as a new member

ECSDA is pleased to welcome ID2S as a new member having joined the association.

On Tuesday 27 November, the ECSDA Extraordinary General Meeting has approved ID2S as a new member. ID2S Chief Executive Officer, Andrea Tranquillini, becomes ECSDA new Board member.

The French CSD, has been recently authorized under the EU CSD Regulation to provide central securities depository services for the Negotiable European Commercial Paper (NEU CP) market, and hence was eligible to become an ECSDA member. ID2S was formed by combining the expertise of a telecom company and a developer of an MTF for commercial papers Orange S.A and SETL, as a provider of transactional services based on blockchain technology.

ID2S uses IT technology based on blockchain solutions as operated by SETL. Since recently, it is also connected to T2S and provides ancillary services adapted to NEU CP.

Learn more about ID2S from the interview of Thiebald Cremers, Director Legal and Public Affairs at SETL France, on the occasion of the ECSDA Technology day on 27 November 2018 – Read the full interview