Stand:updated on 10.05.2019 Settlement internalisers – CSDR
Content
From 1 July 2019, settlement internalisers in Germany are required under Article 9(1) of the CSDR to report to BaFin on a quarterly basis the aggregated volume and value of all securities transactions that they settle outside securities settlement systems.
New reporting obligation under Article 9(1) of the CSDR
The information to be reported is set out in Article 2(1) of Implementing Regulation (EU) 2017/391 and the Guidelines on Internalised Settlement Reporting.
Under Implementing Regulation (EU) 2017/393, the reports must be submitted within 10 working days from the end of each quarter. The first time a report is to be submitted, in accordance with the regulation, is 12 July 2019. BaFin will then forward the reports to the European Securities and Markets Authority (ESMA). Further information regarding the reporting obligation can be found on ESMA’s website.
Who is subject to the reporting obligation?
The reporting obligation applies to settlement internalisers. Under Article 2(1) no. 11 of the CSDR, this means any institution, including one authorised in accordance with Directive 2013/36/EU or with Directive 2014/65/EU, which executes transfer orders on behalf of clients or on its own account other than through a securities settlement system.
The report can also be submitted by a third-party notifier authorised by the settlement internaliser. Even in cases where the report is transmitted by a third party, the legal obligation to submit the reports and the responsibility for the completeness and accuracy of the reports remain in the sphere of responsibility of the settlement internaliser.
How can the report be submitted?
BaFin provides the reporting and publishing platform (MVP) for the submission of the reports. On the MVP Portal, the actual notifications are to be submitted using the forthcoming specialised procedure “Settlement internaliser reporting procedure”.
In order to submit reports, you will need to register for both the MVP and the specialised procedure “Settlement internaliser reporting procedure”. BaFin recommends that you register on the MVP as soon as possible, unless you are already registered because of other reporting procedures. Registration for the specialised procedure is expected to be open from 4 March 2019. Information about the opening of the registration for the specialised procedure will be published on the BaFin website in March.
The report itself is to be submitted to BaFin in XML format using the electronic notification procedure. The ISO 20022 message definition in XSD format can be accessed on the ESMA website.
:Workshop
BaFin is planning to hold a workshop for direct notifiers and third-party notifiers in May 2019 to answer technical queries and questions about the procedure and the content of the report. Specific information regarding the date of the workshop and the registration procedure will be published on this page in April.
Test procedure from May 15th to June 05th:
From 15 May 2019 to 5 June 2019, National Competent Authorities and ESMA are going to conduct a joint test procedure. During this period, the settlement internalisers and third-party notifiers for settlement internalisers will have the opportunity to test the file upload and the feedback functionalities of the MVP Portal/ESMA system. Prerequisite for participation in the test procedure is prior registration in the MVP Portal and granted access to the specialised procedure “Settlement internaliser reporting procedure”.
