EUROPEAN UNION: ESMA Consults on CSDR Guidelines on Participant Default Rules and Procedures

Tuesday May 31 2016

The European Securities and Markets Authority (ESMA) has launched a consultation on Guidelines on participant default rules and procedures under CSDR.

The purpose of the proposed guidelines is to specify the steps a central securities depository (CSD) should set up in its rules and follow in case insolvency proceedings are opened with respect to one or more of its participants. The proposed guidelines are based on the 2012 CPMI-IOSCO Principles for financial markets infrastructures (PFMIs).

Section 2 of the consultation contains information on the background and mandate, Section 3 contains an analysis of the scope and content of the proposed guidelines, while Section 4 contains the proposed guidelines.

Annex I sets out a summary of the questions contained in this paper and Annex II includes a high level cost-benefit analysis for the guidelines.

ESMA will consider the feedback it received to the consultation with a view to finalising the guidelines by Q4 2016.

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