ESMA Central Security Depo FAQ
On Mar. 13, ESMA issued FAQ for central security depository rules.
- On central securities depositaries regulation (CSDR) provisions, from Mar. 30, 2017.
- Follows Mar. 2017 publication of CSDR regulations in EU official journal, see #29822.
- General Questions (Q. 1)
- On meaning of providing regulatory reporting in CSDR annex list of ancillary service.
- Authorization, Organization (Q. 1-3)
- Deadline for CSD application for authorization, begin on filing complete applications.
- Procedure relating to transfer of issuance accounts and records to ensure continuity.
- Organizational requirement, including need for separate committee of risk and audit.
- Information to be provided to relevant authority, in event of change of management.
- Meaning of independent, related to requirement to member of a management body
- Recordkeeping rules when first become applicable, how applied to ancillary service.
- Obligation to verify LEI detail, and supply information on types of securities account.
- Conduct of Business, Risk (Q. 4-7)
- On use of internal or proprietary messaging standards in participant communication.
- Protection of securities of participants and their clients, from time of authorization.
- Scope of definitions of critical service provider and of market infrastructure in RTS.
- Mar. 2017 FAQ Update
- On Mar. 31, 2017, ESMA issued updated FAQs on implementation of CSDR regulations.
- Update clarifies introduction of additional national requirements, on sharing of staff.
- And LEIs, protection of securities of participants and banking-type ancillary services.
- Jun. 2017 FAQ Update
- On Jun. 2, 2017, ESMA issued updated FAQs on implementation of CSDR regulations.
- CSDs’ investment policy; access to CSDs; and conditions for services in other States.
- CSD can use overnight deposits and time deposits with a central bank, bank, or CSD.
- Provided depositing CSD can have immediate and unconditional access to cash asset.
- Need to provide a response to an access request from an issuer within three months.
- No extension of time period, even if CSD requests additional information from issuer.
- Provide NCA of home State with measures to allow users to comply with national law.
- Include actual evidence that the measures do ensure compliance, e.g. legal opinions.
- Oct. 2017 Updates
- On Oct. 2, ESMA issued updated questions on protecting securities, ancillary services.
- NCA to inform CSD of decision to authorize within six months of complete application.
- Require separate committee on risk, audit and remuneration, but can share members.
- Substantive change in management requires CSD to inform relevant NCA in advance.
- Nov. 2017 Updates
- On Nov. 17, 2017, ESMA updated FAQs on the implementation of CSDR regulations.
- Update provided detailed answers, regarding specific aspects of relevant authorities,
conduct of business rules, protection of securities, and also prudential requirements.
||EU CMSN; EU ESMA
||B/D; Bank; Depo; Exch
||10/02/2017, FAQ ESMA70-708036281-2, PR, 6/2/2017, FAQ ESMA70-708036281-2, PR, 3/31/2017, GD, PR, 3/13/2017, CSDR Reg 909/2014, FAQ, ESMA70-708036281-2, PR, 11/17/2017
||Compliance; Financial; Legal; Reporting; Trade Reporting; Trading
Last substantive update on 11/19/2017