Who is subject to the reporting obligation?

Subject to the reporting obligation are central securities depositories (CSDs). Pursuant to Regulation (EU) No 909/2014 (CSDR), a central securities depository means a legal person that operates a securities settlement system referred to in point (3) of Section A of the Annex of CSDR and provides at least one other core service listed in Section A of the respective Annex.

What must be submitted?

According to Article 7(1) of CSDR, for each securities settlement system it operates, a CSD shall establish a system that monitors settlement fails of transactions in financial instruments referred to in Article 5(1) of CSDR. It shall provide regular reports to the competent authority and relevant authorities, as to the number and details of settlement fails and any other relevant information, including the measures envisaged by CSDs and their participants to improve settlement efficiency. The competent authorities shall share with ESMA any relevant information on settlement fails.

In particular, regarding Articles 14 and 29 of the delegated regulation (EU) 2018/1229 on settlement discipline specifying the details of the reports on settlement fails to in Article 7(1) of CSDR. Furthermore, the “Guidelines on Settlement Fails Reporting under Article 7 of the CSDR” (ESMA70-156-4717) are applicable.

When does the reporting obligation start?

The reporting obligation starts from the date of entry into force of the delegated regulation (EU) 2018/1229 on settlement discipline, meaning the 1st February 2022.