Category: Public

ECSDA feedback on the CMH-TF standards

ECSDA feedback on the CMH-TF standards

The European Central Securities Depositories association (ECSDA) appreciates to possibility to contribute to further improvement of the AMI-SeCo on the Collateral Management Harmonisation Task Force (CMH-TF) draft standards.
ECSDA welcomes and supports the harmonisation efforts undertaken by the CMH-TF and we note that many of our detailed comments have been taken on board in the draft standards.
Although some of the issues that are fundamental in view of CSDs have not been incorporated in the standards yet. We would like hence to reiterate those issues that we deem most important and complement them with additional points that we deem would be useful in order to advance the work on the standards.

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ESMA to recognise the UK CSD in case of no-deal Brexit

ESMA to recognise the UK CSD in case of no-deal Brexit

ESMA announced the 1th of March 2019 that, in a case of a no-deal Brexit scenario, the CSDs established in the UK, Euroclear UK and Ireland Limited, will be recognised as a third country CSDs to provide their services in the European Union (EU). This decision has been taken in order to allow the UK CSD to keep serving Irish securities and to avoid any negative impact on the Irish securities market. ESMA has also released its consideration about the UK CSD and its compliance with the CSDR: the Articles 25 conditions of CSDR are met by the UK CSD in the eventuality of a no-deal Brexit. According to this, it has been adopted a decision to recognise the UK CSD as a third-country CSD under the CSDR. The recognition of the decision would eventually come into effect on the date following a no-deal Brexit.

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ECSDA answers ESMA on settlement fails reporting

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

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 that was published on 29 January.

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

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.

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CDCP, Slovak CSD is granted CSDR licence

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

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.

The ECSDA CSDR Settlement Penalties Framework can be found here.

Season’s Greetings and best wishes from ECSDA

Season’s Greetings and best wishes from ECSDA

 

Thank you for sharing great moments with us in 2018!

The European Central Securities Depositories Association wishes you and your families a merry holiday period and a wonderful 2019!

Looking forward to restarting to work with you back again in 2019.

ECSDA Secretariat