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.

Useful links:

24 February 2021: Article Cleared derivatives: The new regulation finally published!
19 February 2021: Article Uncleared derivatives: The end of a long wait
27 January 2021: Article The settlement discipline regime (CSDR) SDR 2022
10 December 2020: Article On the way to CSDR 2
07 December 2020: Article Cleared derivatives: extension of exemption and Brexit
02 December 2020: Article CSDR & BREXIT
27 November 2020: Article Uncleared derivatives: Yet another new text proposal
02 November 2020: Article Consultation on AIFMD review is launched
26 October 2020: Article The settlement disciplines regime (CSDR): SDR 2022
29 September 2020: Article EMIR Third country CCPs … and the UK
28 September 2020: Article CMU 2 new action plan
25 September 2020: Article New measures on digital finance
23 September 2020: Article AIFMD Review: the process is ongoing
03 September 2020: Article The settlement disciplines regime (CSDR): A likely short-lived date