ESMA publishes final guidelines in settlement under CSDR
03 April 2018 Paris
Image: Shutterstock
The European Securities and Markets Authority (ESMA) has published its final guidelines on how to report internalised settlement under the Central Securities Depositories Regulation (CSDR).
The authority stated that entities such as investment firms and credit institutions, who are providing custody and safekeeping services in relation to financial instruments recorded in a central securities depositories (CSD), can settle transactions in those financial instruments outside the securities settlement systems operated by CSDs.
ESMA explained that these entities need to report these transactions to national competent authorities (NCAs), starting on 12 July 2019.
ESMA said its guidelines clarify the scope and process of internalised settlement reporting as well as the exchange of information between ESMA and NCAs, who will receive the data from reporting entities.
The guidelines will apply from the date of their publication on ESMA’s website in all official languages of the EU.
Within two months of the publication, NCAs will have to inform ESMA whether or not they intend to comply with these guidelines.
The authority stated that entities such as investment firms and credit institutions, who are providing custody and safekeeping services in relation to financial instruments recorded in a central securities depositories (CSD), can settle transactions in those financial instruments outside the securities settlement systems operated by CSDs.
ESMA explained that these entities need to report these transactions to national competent authorities (NCAs), starting on 12 July 2019.
ESMA said its guidelines clarify the scope and process of internalised settlement reporting as well as the exchange of information between ESMA and NCAs, who will receive the data from reporting entities.
The guidelines will apply from the date of their publication on ESMA’s website in all official languages of the EU.
Within two months of the publication, NCAs will have to inform ESMA whether or not they intend to comply with these guidelines.
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