{"id":"circulars/cssf-22-792","title":"Circular CSSF 22/792","type":"circular","date":"2022-01-10","kind":"circular","html":"<p>Circular CSSF 22/792 is a CSSF circular, published 10 January 2022 and updated 11 January 2022. Subject: Application of the Guidelines of the European Securities and Market Authority on Settlement Fails Reporting under Article 7 of CSDR (ESMA70-156-4717).</p>\n<p>Relevant for: Central Securities Depositories (CSDs).</p>\n<p>Keywords: CSDR.</p>\n<h2>Text</h2>\n<p>Circular CSSF 22/792 Application of the Guidelines of the European Securities and Market Authority on Settlement Fails Reporting under Article 7 of CSDR (ESMA70-156-4717)</p>\n<p>Circular CSSF 22/792 Re: Application of the Guidelines of the European Securities and Market Authority on Settlement Fails Reporting under Article 7 of CSDR (ESMA70-156-4717) Luxembourg, 10 January 2022 To</p>\n<p>all</p>\n<p>Central</p>\n<p>Securities</p>\n<p>Depositories</p>\n<p>Ladies and Gentlemen, The purpose of the present circular is to inform you that the CSSF, in its capacity as competent authority, applies the Guidelines on Settlement Fails Reporting under Article 7 of CSDR 1 (ESMA70-156-4717) (the “Guidelines”), published on 8 December 2021. Consequently, the CSSF has integrated the Guidelines into its administrative practice and regulatory approach with a view to promote supervisory convergence in this field at European level. All Central Securities Depositories (“CSDs”), as defined in Article 2(1)(1) of CSDR, supervised by the CSSF shall duly comply with these Guidelines. The Guidelines are issued by ESMA based on Article 16(1) of the ESMA Regulation. The purpose of these Guidelines is to establish consistent, efficient and effective supervisory practices within the European system of financial supervision and to ensure common, uniform and consistent application of Article 7(1) of CSDR and Articles 14 and 39 of the Commission Delegated Regulation (EU) 2018/1229 on settlement discipline 2, related to the exchange of information between ESMA and the competent authorities regarding settlement fails, and the content of the related reporting made by CSDs. The Guidelines apply from the date of entry into force of the RTS on settlement discipline. The Guidelines are attached to this circular and are available on the ESMA’s website (<a href=\"http://www.esma.europa.eu\" target=\"_blank\" rel=\"noreferrer\">www.esma.europa.eu</a>). The present circular shall apply to all CSDs established in Luxembourg.</p>\n<p>This circular enters into force on the day of its publication.</p>\n<p>1 Regulation (EU) No 909/2014 of the European Parliament and of the Council of 23 July 2014 on improving securities settlement in the European Union and on central securities depositories and amending Directives 98/26/EC and 2014/65/EU and Regulation (EU) No 236/2012. 2</p>\n<p>RTS (EU) 2018/1229 on Settlement Discipline (as modified by RTS (EU) 2020/1212, and RTS (EU) 2021/70 which postponed its date of entry into force to 1 February 2022).</p>\n<p>Yours faithfully,</p>\n<p>Françoise KAUTHEN</p>\n<p>Claude MARX</p>\n<p>Annex:</p>\n<p>ESMA Guidelines on Settlement Fails Reporting (Europa.eu)</p>\n<p>esma70-156-4717_gu idelines_on_settlement</p>\n<p>Final Report Guidelines on Settlement Fails Reporting under Article 7 of CSDR</p>\n<p>08/12/2021| ESMA70-156-4717</p>\n<p>Table of Contents Guidelines on Settlement Fails Reporting under Article 7 of CSDR ......................................... 2 1. Scope .................................................................................................................................. 2 2. Legislative references, abbreviations and definitions......................................................... 2 3. Purpose ............................................................................................................................... 4 4. Compliance and reporting obligations ................................................................................ 4 5. Guidelines on settlement fails reporting under Article 7 of CSDR .................................... 5 Annex I – Method for the valuation and representation of settlement instructions (SIs) ..... 13 Annex II – Examples of reporting settlement fails based on the reason of the settlement fail ..............................................................................................................................................</p>\n<p>The text above is the opening of the document; the PDF carries the whole.</p>\n<p><a href=\"https://www.cssf.lu/en/Document/circular-cssf-22-792/\" target=\"_blank\" rel=\"noreferrer\">Document page</a>, <a href=\"https://www.cssf.lu/wp-content/uploads/cssf22_792eng.pdf\" target=\"_blank\" rel=\"noreferrer\">PDF</a>. Source: Commission de Surveillance du Secteur Financier (CSSF), reproduced with the CSSF's consent. The French text prevails.</p>"}