FIN-FSA Issues Guidance on Reporting of Settlement Internalization
FIN-FSA has made some specifications to the description of electronic reporting on the internalized settlement. FIN-FSA will begin to collect detailed data on internalized settlement from the reporting entities on October 01, 2019, with data for the reference period in the third quarter of 2019. Under point (11) of Article 2(1) of Regulation (EU) No 909/2014, settlement internalizer means any institution, including one authorized in accordance with Capital Requirements Directive (CRD) IV or with Markets in Financial Instruments Directive (MiFID) II, which executes transfer orders on behalf of clients or on its own account other than through a securities settlement system.
FIN-FSA will test the data collection in the period August 26-30, 2019. The purpose of the test is to ensure that reporting entities are duly prepared for the submission of data on internalized settlement to FIN-FSA. Important considerations before the testing include the following:
- Reporting entities need collect reference period data by themselves, without the data collection system
- The structure and content of the report must follow the published schema
- The data may be genuine or artificial data
- The data, created according to the data descriptions, is submitted to FIN-FSA as a compressed (.zip) and encrypted email file, according to a normal reporting process
- The FIN-FSA intends to incorporate the existing validation rules to the test before the commencement of the test.
- Reporting agents may also test the submission of data after the test period, but only before October 01, 2019, i.e. the submission of production data for the reference period third quarter of 2019.
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Keywords: Europe, Finland, Securities, Internalized Settlement, Reporting, Data Collection, CRD IV, MiFID II, Technical Guide, FIN-FSA
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