{"id":"circulars/cssf-22-820","title":"Circular CSSF 22/820","type":"circular","date":"2022-08-19","kind":"circular","html":"<p>Circular CSSF 22/820 is a CSSF circular, published 19 August 2022. Subject: Application of the Guidelines of the European Securities and Markets Authority on standardised procedures and messaging protocols under Article 6(2) of Regulation (EU) No 909/2014 (ESMA70-151-2906).</p>\n<p>Relevant for: Credit institutions, Investment firms.</p>\n<p>Keywords: CSDR, Securities settlement.</p>\n<h2>Text</h2>\n<p>MARKETS AUTHORITY ON STANDARDISED PROCEDURES AND MESSAGING PROTOCOLS UNDER</p>\n<p>ARTICLE 6(2) OF REGULATION (EU) NO 909/2014 (ESMA70-1512906)</p>\n<p>Circular CSSF 22/820 Re: Application of the Guidelines of the European Securities and Markets Authority on standardised procedures and messaging protocols under Article 6(2) of Regulation (EU) No 909/2014 (ESMA70-151-2906)</p>\n<p>Luxembourg, 19 August 2022</p>\n<p>To investment firms and to credit institutions providing</p>\n<p>Purpose of the circular The purpose of this circular is to inform you that the CSSF, in its capacity as competent authority, applies the Guidelines of the European</p>\n<p>investment services or</p>\n<p>Securities and Markets Authority on standardised procedures and</p>\n<p>exercising investment activities</p>\n<p>messaging protocols under Article 6(2) of Regulation (EU) No 909/2014 (ESMA70-151-2906) (the “Guidelines”), published on 06/04/2020. 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 entities providing investment services or exercising investment activities shall duly comply with them. The Guidelines The Guidelines are issued by ESMA in accordance with Article 6(2) of Regulation (EU) No 909/2014 (“CSDR”). The requirement laid down in Article 6(2) of CSDR and further specified in Article 2 of Commission Delegated Regulation (EU) 2018/1229 is focused on the preparation of the settlement process: concerned entities should ensure that they have all the necessary settlement details as much as possible on the business day on which the transaction takes place. To achieve this, the entities that do not already have the necessary settlement information should communicate with their clients in order to obtain the respective information, which should include standardised data useful for the settlement process. In particular, under Article 6(2) of CSDR, entities are expected, where applicable, to take measures to limit the number of settlement fails. Pursuant to this article, ESMA has developed regulatory technical standards to specify inter alia the details of the allocation and confirmation measures and of the procedures between entities and their professional clients facilitating settlement, which have been included in Article 2 of the Commission Delegated Regulation (EU) 2018/1229. The Guidelines aim to clarify the scope of the requirement contained in Article 6(2) of CSDR and provide guidance on the standardised</p>\n<p>procedures and messaging standards used for the purposes of compliance with such requirement. The Guidelines are attached to this circular and are available on the ESMA’s website: <a href=\"https://www.esma.europa.eu/sites/default/files/library/esma70-1512906_guidelines_on_csdr_art_6_en.pdf\" target=\"_blank\" rel=\"noreferrer\">https://www.esma.europa.eu/sites/default/files/library/esma70-1512906_guidelines_on_csdr_art_6_en.pdf</a> Scope of application The present circular shall apply to investment firms and to credit institutions providing investment services or exercising investment activities in particular for transactions in financial instruments referred to in Article 5(1) of CSDR. Date of application This circular shall apply with immediate effect.</p>\n<p>Françoise KAUTHEN</p>\n<p>Claude MARX</p>\n<p>Guidelines on standardised procedures and messaging protocols under Article 6(2) of Regulation (EU) No 909/2014</p>\n<p>06/04/2020 | ESMA70-151-2906</p>\n<p>Table of Contents 1</p>\n<p>Scope ............................................................................................................................. 2</p>\n<p>Legislative references and abbreviations ........................................................................ 2 2.1</p>\n<p>Legislative references ............................................................................................. 2</p>\n<p>2.2</p>\n<p>Abbreviations ....</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-22-820/\" target=\"_blank\" rel=\"noreferrer\">Document page</a>, <a href=\"https://www.cssf.lu/wp-content/uploads/cssf22_820eng.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>"}