Consob Notice of 3 February 2022

Compliance with ESMA Guidelines on settlement fails reporting under Article 7 of CSDR (ESMA70-156-4717)

Consob and Banca d’Italia, in their roles as competent authorities for the supervision of Italian CSDs, comply with the “Guidelines on settlement fails reporting under Article 7 of CSDR”, issued by European Securities and Markets Authority (ESMA) on 24 September 2021, by incorporating them into their supervisory practices.

The Guidelines have been published by ESMA on its website, in all the official languages of the European Union, on 8 December 2021, and provide technical instructions regarding the content of data that CSDs are required to report to the competent authorities pursuant to Article 7(1) of CSDR and about the exchange of data between the latter and ESMA. The technical instructions provided by the Guidelines also apply for the purpose of determining CSD’s participants considered as consistently and systematically failing to deliver in a security settlement system, as referred to in Article 7(9) of CSDR.

The Guidelines are also available on the Consob institutional website in the Italian version, together with the full text of the "Final report" in English (containing the summary of the responses to the consultation and the consequent observations of ESMA), useful for allowing a correct application of the same Guidelines.

CSDs subject to the supervision of the Italian authorities are required to comply with the interpretative guidance given by ESMA through the Guidelines that are the subject of this notice; the Guidelines are applicable - according to the terms established by paragraph 1 of the same Guidelines - starting from the date of entry into force of the RTS on settlement discipline, i.e. from 1st February 2022.

ESMA was informed of the compliance with the Guidelines pursuant to Regulation (EU) no. 1095/2010.

THE CHAIRMAN

Paolo Savona