ESMA Issues Responses to Proposal on Internalized Settlement Reporting

Internalized settlement refers to transactions that are settled outside the securities settlement systems operated by the CSDR. These guidelines apply in relation to the internalized settlement reporting and to the exchange of information between ESMA and competent authorities regarding the internalized settlement. According to Article 9(1) of the CSDR, settlement internalizers shall report to the CSD national competent authorities in their jurisdiction; the settlement internalizers will report the aggregated volume and value of all securities transactions that they settle outside the securities settlement systems on a quarterly basis. The national competent authorities then transmit this information to ESMA and have to inform ESMA of any potential risk resulting from that settlement activity.

Related Link: Consultation and Responses

Keywords: Europe, Securities, CSDR, Internalized Settlement, Reporting, Guideline, ESMA