Commission Delegated Regulation (EU) 2017/392Show full title

SECTION 5 Requirements for services provided by CSDs

Article 23 Book-entry form

An application for authorisation shall include information on the processes concerning book entries that ensure the compliance of the applicant CSD with Article 3 of Regulation (EU) No 909/2014.

Article 24 Intended settlement dates and measures for preventing and addressing settlement fails

1. An application for authorisation shall include the following information in respect of the applicant CSD:

(a) the procedures and measures to prevent settlement fails in accordance with Article 6 of Regulation (EU) No 909/2014;

(b) the measures to address settlement fails in accordance with Articles 7 of Regulation (EU) No 909/2014.

2. Where an applicant CSD applies for authorisation before Articles 6 and 7 of Regulation (EU) No 909/2014 are applicable in accordance with paragraphs (4) and (5) of Article 76 of that Regulation, the application for authorisation shall contain an implementation plan detailing how the applicant CSD will comply with the requirements under Articles 6 and 7 of Regulation (EU) No 909/2014.

Institutions referred to in Article 69(1) of Regulation (EU) No 909/2014 shall include in the implementation plan referred to in the first subparagraph an analysis of the extent to which their existing rules, procedures, mechanisms and measures comply with the requirements under Articles 6 and 7 of Regulation (EU) No 909/2014.

Article 25 Integrity of the issue

An application for authorisation shall include information concerning the applicant CSD's rules and procedures for ensuring the integrity of securities issues referred to in Article 37 of Regulation (EU) No 909/2014 and Chapter IX of this Regulation.

Article 26 Protection of participants' and their clients' securities

An application for authorisation shall include the following information concerning the measures put in place to protect the securities of the applicant CSD's participants and those of their clients in accordance with Article 38 of Regulation (EU) No 909/2014:

(a)

the rules and procedures to reduce and manage the risks associated with the safekeeping of securities;

(b)

a detailed description of the different levels of segregation offered by the applicant CSD, a description of the costs associated with each level, the commercial terms on which they are offered, their main legal implications and the applicable insolvency law;

(c)

the rules and procedures for obtaining the consents referred to in Article 38(7) of Regulation (EU) No 909/2014.

Article 27 Settlement finality

An application for authorisation shall contain information concerning the rules on settlement finality put in place by the applicant CSD in accordance with Article 39 of Regulation (EU) No 909/2014.

Article 28 Cash settlement

1. An application for authorisation shall include the procedures for the settlement of the cash payments for each securities settlement system that the applicant CSD operates in accordance with Article 40 of Regulation (EU) No 909/2014.

2. The applicant CSD shall provide information about whether the settlement of the cash payments is provided in accordance with Article 40(1) or (2) of Regulation (EU) No 909/2014.

If the settlement of the cash payments is intended to take place in accordance with Article 40(2) of Regulation (EU) No 909/2014, the applicant CSD shall explain why settlement in accordance with Article 40(1) of Regulation (EU) No 909/2014 is not practical and available.

Article 29 Participant default rules and procedures

An application for authorisation shall include the rules and procedures put in place by the applicant CSD to manage the default of a participant.

Article 30 Transfer of participants and clients' assets in case of a withdrawal of authorisation

An application for authorisation shall include information concerning the procedures put in place by the applicant CSD to ensure the timely and orderly settlement and transfer of the assets of clients and participants to another CSD in the event of a withdrawal of its authorisation.