Flashnews: Where to find the data to calculate penalties? (CSDR - SDR 2022)
ESMA has just published a new version of its CSDR Q&A (May 28, 2021), specifying the register and databases CSDs should use to apply the penalties:
FIRDS to identify financial instruments admitted to trading and their characteristics
FIRTS for the benchmark market and bond liquidity
List of exempted third country shares
List of markets qualified as “SME Growth Markets”
Less than new information, this is a confirmation of what the CSDs (and T2S) had envisaged following exchanges with the regulator. Since the penalties apply from February 2022, the calculation tools have already been developed and are now in the testing phase.
It should be noted, however, that the ESMA’s response does not close the door to the use of alternative sources of information for the identification of financial instruments subject to penalties. We can only regret once again the absence of an ESMA database dedicated to CSDR and which would have been a “golden source”.
The publication of this new Q&A should also not make us forget the more than 30 questions submitted to ESMA and still awaiting a response from the Commission. The role of the “Level 3” consisting of Q&A and Guidelines is to enable the unambiguous implementation of new requirements. It is therefore an important element of the whole process.
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