ESMA finalises guidelines on how to report internalised settlement

On 28th March 2018, the European Securities and Markets Authority (ESMA) published its final guidelines on how to report internalised settlement under the Central Securities Depositories Regulation (CSDR).

Entities such as investment firms and credit institutions, who are providing custody/ safekeeping services in relation to financial instruments recorded in a CSD, can settle transactions in those financial instruments outside the securities settlement systems operated by CSDs, but need to report them to national competent authorities (NCAs), starting on 12 July 2019.

The guidelines will apply from the date of their publication on ESMA’s website in all official languages of the EU. Within two months of the publication, NCAs will have to inform ESMA whether or not they intend to comply with these guidelines.