LegalizeCommission Delegated Regulation (EU) 2017/392 of 11 November 2016 supplementing Regulation (EU) No 909/2014 of the European Parliament and of the Council with regard to regulatory technical standards on authorisation, supervisory and operational requirements for central securities depositories (Text with EEA relevance. )
This is the act as published. Later amendments are not folded into the text below: each one is a separate act in this repository and an entry in this law's history.
1 amending act · 2026-10-14, 32026R1519
For the purposes of point (b), in performing the assessment the CSD shall employ a defined and objective methodology that shall not exclusively rely on external opinions and that takes into consideration the risk arising from the establishment of the issuer in a particular country
By way of derogation to paragraph 1, derivative contracts shall be considered highly liquid financial instruments with minimal credit and market risk where the following conditions are met:
- (a) they are entered into for the purpose of hedging currency risk arising from the settlement in more than one currency in the securities settlement system operated by the CSD or interest rate risk that may affect CSD assets and, in both cases, qualify as a hedging contract pursuant to International Financial Reporting Standards (IFRS) adopted in accordance with Article 3 of Regulation (EC) No 1606/2002 of the European Parliament and of the Council [^ntr9-L_2017065EN.01004801-E0009];
- (b) reliable price data is published on a regular basis for those derivative contracts;
- (c) they are concluded for the specific period of time necessary to reduce the currency or interest rate risk to which the CSD is exposed.
Article 82
Appropriate timeframe for access to assets
A CSD shall have immediate and unconditional access to cash assets.
A CSD shall have access to financial instruments on the same business day when a decision to liquidate the financial instruments is taken.
For the purposes of paragraph 1 and 2, the CSD shall put in place procedures ensuring that the CSD is able to access cash and financial instruments within the time frames set out therein. The CSD shall inform the competent authority of any change to those procedures in accordance with Article 16(4) of Regulation (EU) No 909/2014 and shall obtain its validation before implementing that change.
Article 83
Concentration limits to individual entities
For the purposes of Article 46(5) of Regulation (EU) No 909/2014, a CSD shall hold its financial assets in diversified authorised credit institutions or authorised CSDs in order to remain within acceptable concentration limits.
For the purposes of Article 46(5) of Regulation (EU) No 909/2014, acceptable concentration limits shall be determined based on the following:
- (a) the geographic distribution of the entities with which the CSD holds its financial assets;
- (b) the interdependency relationships that the entity holding the financial assets or entities of its group may have with the CSD;
- (c) the level of credit risk of the entity holding the financial assets.
CHAPTER XII CSD LINKS (Article 48(3), (5), (6) and (7) of Regulation (EU) No 909/2014)
Article 84
Conditions for the adequate protection of linked CSDs and of their participants
A CSD link shall be established and maintained under the following conditions:
- (a) the requesting CSD shall meet the requirements of the receiving CSD's participation rules;
- (b) the requesting CSD shall conduct an analysis of the receiving third-country CSD's financial soundness, governance arrangements, processing capacity, operational reliability and any reliance on a third party critical service provider;
- (c) the requesting CSD shall take all necessary measures to monitor and manage the risks that are identified following the analysis referred to in point (b);
- (d) the requesting CSD shall make the legal and operational terms and conditions of the link arrangement available to its participants allowing them to assess and manage the risks involved;
- (e) before the establishment of a CSD link with a third-country CSD, the requesting CSD shall perform an assessment of the local legislation applicable to the receiving CSD;
- (f) the linked CSDs shall ensure the confidentiality of information in connection to the operation of the link. The ability to ensure confidentiality shall be evidenced by the information provided by the CSDs, including any relevant legal opinions or arrangements;
- (g) the linked CSDs shall agree on aligned standards and procedures concerning operational issues and communication in accordance with Article 35 of Regulation (EU) No 909/2014;
- (h) before the link becomes operational, the requesting and receiving CSDs shall:
- (i) conduct end-to-end tests;
- (ii) establish an emergency plan, as part of the business continuity plans of the respective CSDs, identifying the situations where the securities settlement systems of the two CSDs malfunction or break down, and provide for the remedial actions planned if those situations occur;
- (i) all link arrangements shall be reviewed at least annually by the receiving CSD and the requesting CSD taking into account all relevant developments, including market and IT developments, as well as any developments in local legislation referred to in point (e);
- (j) for CSD links that do not provide for DVP settlement, the annual review referred to in point (i) shall also include an assessment of any developments that may allow supporting DVP settlement.
For the purposes of point (e), in performing the assessment, the CSD shall ensure that the securities maintained in the securities settlement system operated by the receiving CSD benefit from a level of asset protection comparable to the one ensured by the rules applicable to the securities settlement system operated by the requesting CSD. The requesting CSD shall require from the third-country CSD a legal assessment addressing the following issues:
- (i) the entitlement of the requesting CSD to the securities, including the law applicable to proprietary aspects, the nature of the rights of the requesting CSD on the securities, the possibility of encumbering the securities;
- (ii) the impact of insolvency proceedings opened against the receiving third- country CSD on the requesting CSD regarding the segregation requirements, settlement finality, procedures and time limits to claim the securities in the relevant third country.
In addition to the conditions referred to in paragraph 1, a CSD link providing for DVP settlement shall be established and maintained under the following conditions:
- (a) the requesting CSD shall assess and mitigate the additional risks resulting from the settlement of cash;
- (b) a CSD that is not authorised to provide banking-type ancillary services in accordance with Article 54 of Regulation (EU) No 909/2014, and which is involved in the execution of cash settlement on behalf of its participants, shall not receive credit and shall use prefunding mechanisms covered by its participants in relation to the DVP settlements to be processed through the link;
- (c) a CSD that uses an intermediary for the cash settlement shall ensure that the intermediary performs that settlement efficiently. The CSD shall conduct yearly reviews of the arrangements with that intermediary.
In addition to the conditions referred to in paragraphs 1 and 2, an interoperable link shall be established and maintained under the following conditions:
- (a) the linked CSDs shall agree on equivalent standards concerning reconciliation, opening hours for the processing of the settlement and of corporate actions and cut-off times;
- (b) the linked CSDs shall establish equivalent procedures and mechanisms for transmission of settlement instructions to ensure a proper, secure and straight through processing of settlement instructions;
- (c) where an interoperable link supports DVP settlement, the linked CSDs shall reflect at least daily and without undue delay the results of the settlement in their books;
- (d) the linked CSDs shall agree on equivalent risk-management models;
- (e) the linked CSDs shall agree on equivalent contingency and default rules and procedures referred to in Article 41 of Regulation (EU) No 909/2014.
Article 85
Monitoring and management of additional risks resulting from the use of indirect links or intermediaries to operate CSD links
In addition to complying with the requirements under Article 84, where a requesting CSD uses an indirect link or an intermediary to operate a CSD link, it shall ensure that:
- (a) the intermediary is one of the following:
- (i) a credit institution as defined in point (1) of Article 4(1) of Regulation (EU) No 575/2013 that complies with the following requirements:
- — it complies with Article 38(5) and (6) of Regulation (EU) No 909/2014 or with segregation and disclosure requirements at least equivalent to those laid down in Article 38(5) and (6) of Regulation (EU) No 909/2014 where the link is established with a third- country CSD,
- — it ensures prompt access by the requesting CSD to the securities of the requesting CSD when required,
- — it has low credit risk, which shall be established in an internal assessment by the requesting CSD by employing a defined and objective methodology that does not exclusively rely on external opinions;
- (ii) a third-country financial institution that complies with the following requirements:
- — it is subject to and complies with prudential rules at least equivalent to those laid down in Regulation (EU) No 575/2013,
- — it has robust accounting practices, safekeeping procedures, and internal controls,
- — it complies with Article 38(5) and (6) of Regulation (EU) No 909/2014 or with segregation and disclosure requirements at least equivalent to those laid down in Article 38(5) and (6) of Regulation (EU) No 909/2014 where the link is established with a third- country CSD,
- — it ensures prompt access by the requesting CSD to the securities of the requesting CSD when required,
- — it has low credit risk, based upon an internal assessment by the requesting CSD by employing a defined and objective methodology that does not exclusively rely on external opinions;
- (b) the intermediary complies with the rules and requirements of the requesting CSD, as evidenced by the information provided by that intermediary, including any relevant legal opinions or arrangements;
- (c) the intermediary ensures the confidentiality of information concerning the operation of the CSD link, as evidenced by the information provided by that intermediary, including any relevant legal opinions or arrangements;
- (d) the intermediary has the operational capacity and systems for:
- (i) handling the services provided to the requesting CSD;
- (ii) sending the CSD any information relevant to the services provided in relation to the CSD link in a timely manner;
- (iii) complying with the reconciliation measures in accordance with Article 86 and Chapter IX;
- (e) the intermediary adheres to and complies with the risk-management policies and procedures of the requesting CSD and it has an appropriate risk-management expertise;
- (f) the intermediary has put in place measures that include business continuity policies and associated business continuity and disaster recovery plans, to ensure the continuity of its services, the timely recovery of its operations and the fulfilment of its obligations in events that pose a significant risk of disrupting its operations;
- (g) the intermediary holds sufficient financial resources to fulfil its obligations towards the requesting CSD and to cover any losses for which it may be held liable;
- (h) an individually segregated account at the receiving CSD is used for the operations of the CSD link;
- (i) the condition referred to in point (e) of Article 84(1) is fulfilled;
- (j) the requesting CSD is informed of the continuity arrangements between the intermediary and the receiving CSD;
- (k) the proceeds from settlement are promptly transferred to the requesting CSD.
For the purposes of the first indent in point (a)(i), the third indent in point (a)(ii) and point (h), the requesting CSD shall ensure that it can have access to the securities held in the individually segregated account at any point in time. Where an individually segregated account at the receiving CSD is however not available for the operations of a CSD link established with a third-country CSD, the requesting CSD shall inform its competent authority about the reasons justifying the unavailability of individually segregated accounts and shall provide it with the details on the risks resulting from the unavailability of individually segregated accounts. The requesting CSD shall in any case ensure an adequate level of protection of its assets held with the third-country CSD.
In addition to complying with the requirements under paragraph 1, when a requesting CSD uses an intermediary to operate a CSD link and that intermediary operates the securities accounts of the requesting CSD on its behalf in the books of the receiving CSD, the requesting CSD shall ensure that:
- (a) the intermediary does not have any entitlement to the securities held;
- (b) the account in the books of the receiving CSD is opened in the name of the requesting CSD and the liabilities and obligations as regards the registration, transfer and custody of securities are only enforceable between both CSDs;
- (c) the requesting CSD is able to immediately access the securities held with the receiving CSD, including in the event of a change or insolvency of the intermediary.
Requesting CSDs referred to in paragraphs 1 and 2 shall perform a yearly due diligence to ensure that the conditions referred to therein are fulfilled.
Article 86
Reconciliation procedures for linked CSDs
The reconciliation procedures referred to in Article 48(6) of Regulation (EU) No 909/2014 shall include the following measures:
- (a) the receiving CSD shall transmit to the requesting CSD daily statements with information specifying the following, per securities account and per securities issue:
- (i) the aggregated opening balance;
- (ii) the individual movements during the day;
- (iii) the aggregated closing balance;
- (b) the requesting CSD shall conduct a daily comparison of the opening balance and the closing balance communicated to it by the receiving CSD or by the intermediary with the records maintained by the requesting CSD itself.
In the case of an indirect link, the daily statements referred to in point (a) of the first subparagraph shall be transmitted through the intermediary referred to point (a) of Article 85(1).
Where a CSD suspends a securities issue for settlement in accordance with Article 65(2), all CSDs that are participants of or have an indirect link with that CSD, including in the case of interoperable links, shall subsequently suspend the securities issue for settlement.
Where intermediaries are involved in the operation of CSD links, those intermediaries shall establish appropriate contractual arrangements with the CSDs concerned in order to ensure compliance with the first subparagraph.
In the event of a corporate action that reduces the balances of securities accounts held by an investor CSD with another CSD, settlement instructions in the relevant securities issues shall not be processed by the investor CSD until the corporate action has been fully processed by the other CSD.
In the event of a corporate action that reduces the balances of securities accounts held by an investor CSD with another CSD, the investor CSD shall not update the securities accounts that it maintains to reflect the corporate action until the corporate action has been fully processed by the other CSD.
An issuer CSD shall ensure the timely transmission to all its participants, including investor CSDs, of information on the processing of corporate actions for a specific securities issue. The investor CSDs shall in turn transmit the information to their participants. That transmission shall include all necessary information for investor CSDs to adequately reflect the outcome of those corporate actions in the securities accounts they maintain.
Article 87
DVP settlement through CSD links
Delivery versus payment (DVP) settlement shall be regarded as practical and feasible where:
- (a) there is a market demand for DVP settlement evidenced through a request from any of the user committees of one of the linked CSDs;
- (b) the linked CSDs may charge a reasonable commercial fee for the provision of DVP settlement, on a cost-plus basis, unless otherwise agreed by the linked CSDs;
- (c) there is a safe and efficient access to cash in the currencies used by the receiving CSD for settlement of securities transactions of the requesting CSD and its participants.
CHAPTER XIII ACCESS TO A CSD (Articles 33(5), 49(5), 52(3) and 53(4) of Regulation (EU) No 909/2014)
Article 88
Receiving and requesting parties
For the purposes of this Chapter, a receiving party shall include one of the following entities:
- (a) a receiving CSD as defined in point (5) of Article 2(1) of Regulation (EU) No 909/2014, in respect of paragraphs 1, 4, 9, 13 and 14 of Article 89 and Article 90 of this Regulation;
- (b) a CSD which receives a request from a participant, an issuer, a central counterparty (CCP) or a trading venue to have access to its services in accordance with Articles 33(2), 49(2) and 53(1) of Regulation (EU) No 909/2014 in respect of paragraphs 1 to 3, 5 to 8 and 10 to 14 of Article 89 and Article 90 of this Regulation;
- (c) a CCP which receives a request from a CSD to have access to its transaction feeds in accordance with Article 53(1) of Regulation (EU) No 909/2014 in respect of Article 90 of this Regulation;
- (d) a trading venue which receives a request from a CSD to have access to its transaction feeds in accordance with Article 53(1) of Regulation (EU) No 909/2014 in respect of Article 90 of this Regulation.
For the purposes of this Chapter, a requesting party shall include one of the following entities:
- (a) a requesting CSD as defined in point (6) of Article 2(1) of Regulation (EU) No 909/2014 in respect of paragraphs 1, 4, 9 and 13 of Article 89 and Article 90 of this Regulation;
- (b) a participant, an issuer, a CCP or a trading venue which requests access to the securities settlement system operated by a CSD or to other services provided by a CSD in accordance with Articles 33(2), 49(2) and 53(1) of Regulation (EU) No 909/2014 in respect of paragraphs 1 to 3, 5 to 8 and 10 to 14 of Article 89 and Article 90 of this Regulation;
- (c) a CSD which requests access to the transaction feeds of a CCP in accordance with Article 53(1) of Regulation (EU) No 909/2014 in respect of Article 90 of this Regulation;
- (d) a CSD which requests access to the transaction feeds of a trading venue in accordance with Article 53(1) of Regulation (EU) No 909/2014 in respect of Article 90 of this Regulation.
SECTION 1 Criteria justifying refusal of access (Articles 33(3), 49(3), 52(2) and 53(3) of Regulation (EU) No 909/2014)
Article 89
Risks to be taken into account by CSDs and competent authorities
Where, in accordance with Articles 33(3), 49(3), 52(2) or 53(3) of Regulation (EU) No 909/2014, a CSD carries out a comprehensive risk assessment following a request for access by a requesting participant, an issuer, a requesting CSD, a CCP or a trading venue, as well as where a competent authority assesses the reasons for refusal by the CSD to provide services, they shall take into account the following risks resulting from access to the services of the CSD:
- (a) legal risks;
- (b) financial risks;
- (c) operational risks.
When assessing legal risks following a request for access by a requesting participant, a CSD and its competent authority shall take into account the following criteria:
- (a) the requesting participant is not able to comply with the legal requirements for participation in the securities settlement system operated by the CSD, or does not provide the CSD with the information necessary for the CSD to assess the compliance, including any required legal opinions or legal arrangements;
- (b) the requesting participant is not able to ensure, in accordance with the rules applicable in the home Member State of the CSD, the confidentiality of the information provided through the securities settlement system, or does not provide the CSD with the information necessary for the CSD to assess its ability to comply with those rules on confidentiality, including any required legal opinions or legal arrangements;
- (c) where a requesting participant is established in a third country, either of the following:
- (i) the requesting participant is not subject to a regulatory and supervisory framework comparable to the regulatory and supervisory framework that would be applicable to the requesting participant if it were established in the Union;
- (ii) the rules of the CSD concerning settlement finality referred to in Article 39 of Regulation (EU) No 909/2014 are not enforceable in the jurisdiction of the requesting participant.
When assessing legal risks following an issuer's request for recording its securities in the CSD in accordance with Article 49(1) of Regulation (EU) No 909/2014, the CSD and its competent authority shall take into account the following criteria:
- (a) the issuer is not able to comply with the legal requirements for the provision of services by the CSD;
- (b) the issuer is not able to guarantee that the securities have been issued in a manner that enables the CSD to ensure the integrity of the issue in accordance with Article 37 of Regulation (EU) No 909/2014.
When assessing legal risks following a request for access by a requesting CSD, the receiving CSD and its competent authority shall take into account the criteria set out in points (a), (b) and (c) of paragraph 2.
When assessing legal risks following a request for access by a CCP, a CSD and its competent authority shall take into account the criteria set out in points (a), (b) and (c) of paragraph 2.
When assessing legal risks following a request for access by a trading venue, a CSD and its competent authority shall take into account the following criteria:
- (a) the criteria set out in point (b) of paragraph 2;
- (b) where a trading venue is established in a third country, the requesting trading venue is not subject to a regulatory and supervisory framework comparable to the regulatory and supervisory framework applicable to a trading venue in the Union;
When assessing financial risks following a request for access by a requesting participant, a CSD and its competent authority shall take into account whether the requesting participant holds sufficient financial resources to fulfil its contractual obligations towards the CSD.
When assessing financial risks following an issuer's request for recording its securities in the CSD in accordance with Article 49(1) of Regulation (EU) No 909/2014, a CSD and its competent authority shall take into account the criterion set out in paragraph 7.
When assessing financial risks following a request for access by a requesting CSD, the receiving CSD and its competent authority shall take into account the criterion set out in paragraph 7.
When assessing financial risks following a request for access by a CCP or a trading venue, a CSD and its competent authority shall take into account the criterion set out in paragraph 7.
When assessing operational risks following a request for access by a requesting participant, a CSD and its competent authority shall take into account the following criteria:
- (a) the requesting participant does not have the operational capacity to participate in the CSD;
- (b) the requesting participant does not comply with the risk-management rules of the receiving CSD, or it lacks the necessary expertise in that regard;
- (c) the requesting participant has not put in place business continuity policies or disaster recovery plans;
- (d) the granting of access requires the receiving CSD to undertake significant changes of its operations affecting its risk-management procedures and endangering the smooth functioning of the securities settlement system operated by the receiving CSD, including the implementation of ongoing manual processing by the CSD.
When assessing operational risks following an issuer's request for recording its securities in the CSD in accordance with Article 49(1) of Regulation (EU) No 909/2014, a CSD and its competent authority shall take into account the following criteria:
- (a) the criterion set out in point (d) of paragraph 11;
- (b) the securities settlement system operated by the CSD cannot process the currencies requested by the issuer.
When assessing operational risks following a request for access by a requesting CSD, or a CCP, the receiving CSD and its competent authority shall take into account the criteria set out in paragraph 11.
When assessing the operational risks following a request for access by a trading venue, the receiving CSD and its competent authority shall take into account at least the criteria set out in point (d) of paragraph 11.
SECTION 2 Procedure for refusal of access (Articles 33(3), 49(4), 52(2) and 53(3) of Regulation (EU) No 909/2014)
Article 90
Procedure
In the event of a refusal of access, the requesting party shall have the right to complain within one month from the receipt of the refusal to the competent authority of the receiving CSD, CCP or trading venue that has refused access to it in accordance with Articles 33(3), 49(4), 52(2) or 53(3) of Regulation (EU) No 909/2014.
The competent authority referred to in paragraph 1 may request additional information concerning the refusal of access from the requesting and receiving parties.
The responses to the request for information referred to in the first subparagraph shall be sent to the competent authority within two weeks from the date of the receipt of the request.
In accordance with Article 53(3) of Regulation (EU) No 909/2014, within two business days from the date of the receipt of the complaint referred to in paragraph 1, the competent authority of the receiving party shall transmit the complaint to the relevant authority referred to in point (a) of Article 12(1) of Regulation (EU) No 909/2014 from the Member State of the place of establishment of the receiving party.
The competent authority referred to in paragraph 1 shall consult the following authorities on its initial assessment of the complaint within two months from the date of the receipt of the complaint, as appropriate:
- (a) the competent authority of the place of establishment of the requesting participant in accordance with Article 33(3) of Regulation (EU) No 909/2014;
- (b) the competent authority of the place of establishment of the requesting issuer in accordance with Article 49(4) of Regulation (EU) No 909/2014;
- (c) the competent authority of the requesting CSD and the relevant authority referred to in point (a) of Article 12(1) of Regulation (EU) No 909/2014 responsible for the oversight of the securities settlement system operated by the requesting CSD in accordance with Articles 52(2) and 53(3) of Regulation (EU) No 909/2014;
- (d) the competent authority of the requesting CCP or trading venue in accordance with Article 53(3) of Regulation (EU) No 909/2014 and the relevant authority referred to in point (a) of Article 12(1) of Regulation (EU) No 909/2014 responsible for the oversight of the securities settlement systems in the Member State where the requesting CCP and trading venues are established in accordance with Article 53(3) of Regulation (EU) No 909/2014.
The authorities referred to in points (a) to (d) of paragraph 3 shall respond within one month from the date of the request for consultation specified in paragraph 3. Where an authority referred to in points (a) to (d) of paragraph 3 does not provide its opinion within that time limit, it shall be deemed to have a positive opinion on the assessment provided by the competent authority referred to in paragraph 3.
The competent authority referred to in paragraph 1 shall inform the authorities referred to in points (a) to (d) of paragraph 3 of its final assessment of the complaint within two weeks from the time limit provided in paragraph 4.
Where one of the authorities referred to in points (a) to (d) of paragraph 3 disagrees with the assessment provided by the competent authority referred to in paragraph 1, any of them may refer the matter to ESMA within two weeks from the date when the competent authority referred to in paragraph 1 provides the information concerning its final assessment of the complaint in accordance with paragraph 5.
When the matter has not been referred to ESMA, the competent authority referred to in paragraph 1 shall send a reasoned reply to the requesting party within two working days from the time limit provided in paragraph 6.
The competent authority referred to in paragraph 1 shall also inform the receiving party and the authorities referred to in points (a) to (d) of paragraph 3 of the reasoned reply referred to in the first subparagraph of this paragraph within two working days from the date where it sends the reasoned reply to the requesting party.
In the event of a referral to ESMA referred to in paragraph 6, the competent authority referred to in paragraph 1 shall inform the requesting party and the receiving party of the referral within two working days from the date where the referral has been made.
Where the refusal by the receiving party to grant access to the requesting party is deemed to be unjustified following the procedure provided for in paragraphs 1 to 7, the competent authority referred to in paragraph 1 shall, within two weeks from the time limit specified in paragraph 7, issue an order requiring that receiving party to grant access to the requesting party within three months from the date when the order enters into force.
The time limit referred to in the first subparagraph shall be extended to eight months in case of customised links that require significant development of IT tools, unless otherwise agreed by the requesting and receiving CSDs.
The order shall include the reasons why the competent authority referred to in paragraph 1 concluded that the refusal by the receiving party to grant access was unjustified.
The order shall be sent to ESMA, the authorities referred to in points (a) to (d) of paragraph 3, the requesting party and the receiving party within two working days after the date when it enters into force.
The procedure referred to in paragraphs 1 to 9 shall also apply when the receiving party intends to withdraw access to a requesting party to whom it already provides its services.
CHAPTER XIV AUTHORISATION TO PROVIDE BANKING TYPE OF ANCILLARY SERVICES (Article 55(1) and (2) of Regulation (EU) No 909/2014)
Article 91
CSDs offering banking-type ancillary services themselves
An application for authorisation in accordance to point (a) of Article 54(2) of Regulation (EU) No 909/2014 shall include the following information:
- (a) a copy of the decision of the management body of the applicant CSD to apply for authorisation and the minutes from the meeting where the management body approved the content of the application file and its submission;
- (b) the contact details of the person responsible for the application for authorisation, where that person is not the one submitting the application for authorisation referred to under Article 17 of Regulation (EU) No 909/2014;
- (c) evidence that proves the existence of an authorisation referred to in point (a) of Article 54(3) of Regulation (EU) No 909/2014;
- (d) evidence that the applicant CSD meets the prudential requirements referred to in Article 59(1), (3) and (4) of Regulation (EU) No 909/2014 and the supervisory requirements referred to in Article 60 of that Regulation;
- (e) evidence, containing any relevant documents including articles of incorporation, financial statements, audit reports, reports from risk committees, which proves that the applicant CSD complies with point (d) of Article 54(3) of Regulation (EU) No 909/2014;
- (f) details concerning the recovery plan referred to in point (f) of Article 54(3) of Regulation (EU) No 909/2014;
- (g) a programme of operations that fulfils the following conditions:
- (i) it includes a list of the banking-type ancillary services referred to in Section C of the Annex to Regulation (EU) No 909/2014 that the CSD intends to provide;
- (ii) it includes an explanation of how the banking-type ancillary services referred to in Section C of the Annex to Regulation (EU) No 909/2014 are directly related to any core or ancillary services referred to in Sections A and B of the Annex to Regulation (EU) No 909/2014 that the CSD is authorised to provide;
- (iii) it is structured following the list of banking-type ancillary services referred to in Section C of the Annex to Regulation (EU) No 909/2014;
- (h) evidence supporting the reasons for not settling the cash payments of the CSD's securities settlement system through accounts opened with a central bank of issue of the currency of the country where the settlement takes place;
- (i) detailed information on the arrangements which ensure that the provision of banking-type ancillary services intended to be provided does not affect the smooth provision of the core CSD services referred to in Section A of the Annex to Regulation (EU) No 909/2014, including:
- (i) the IT platform used for the settlement of the cash leg of securities transactions, including an overview of the IT organisation and an analysis of the related risks and how they are mitigated;
- (ii) the operation and legal arrangements of the DVP process and, in particular, the procedures used to address the credit risk resulting from the settlement of the cash leg of securities transactions;
- (iii) the selection, monitoring, legal documentation and management of interconnections with any other third parties involved in the process of cash transfers, in particular the relevant arrangements with third parties involved in the process of cash transfers;
- (iv) the detailed analysis contained in the recovery plan of the applicant CSD of regarding any impact of the provision of banking-type ancillary services on the provision of core CSD services;
- (v) the disclosure of possible conflicts of interests in the governance arrangements resulting from the provision of banking-type ancillary services, and the measures taken to address them.
Article 92
CSDs offering banking-type ancillary services through a designated credit institution
An application for authorisation in accordance with point (b) of Article 54(2) of Regulation (EU) No 909/2014 shall contain the following information:
- (a) a copy of the decision of the management body of the applicant CSD to apply for authorisation and the minutes from the meeting where the management body approved the content of the application file and its submission;
- (b) the contact details of the person responsible for the application for authorisation, where the person is not the same person as the one submitting the application for authorisation referred to in Article 17 of Regulation (EU) No 909/2014;
- (c) the corporate name of the credit institution to be designated in accordance with point (b) of Article 54(2) of Regulation (EU) No 909/2014, its legal status and registered address in the Union;
- (d) evidence that the credit institution referred to in point (c) has obtained an authorisation referred to in point (a) of Article 54(4) of Regulation (EU) No 909/2014;
- (e) the articles of incorporation and other relevant statutory documentation of the designated credit institution;
- (f) the ownership structure of the designated credit institution, including the identity of its shareholders;
- (g) the identification of any common shareholders of the applicant CSD and the designated credit institution and any participations between the applicant CSD and the designated credit institution;
- (h) evidence that the designated credit institution meets the prudential requirements referred to in Article 59(1), (3) and (4) of Regulation (EU) No 909/2014 and the supervisory requirements referred to in Article 60 of that Regulation;
- (i) evidence, including a memorandum of association, financial statements, audit reports, reports from risk committees, or other documents, which proves that the designated credit institution complies with point (e) of Article 54(4) of Regulation (EU) No 909/2014;
- (j) the details of the recovery plan referred to in point (g) of Article 54(4) of Regulation (EU) No 909/2014;
- (k) a programme of operations that fulfils the following conditions:
- (i) it includes a list of the banking-type ancillary services referred to in Section C of the Annex to Regulation (EU) No 909/2014 that the designated credit institution intends to provide;
- (ii) it includes an explanation of how the banking-type ancillary services referred to in Section C of the Annex to Regulation (EU) No 909/2014 are directly related to any core or ancillary services referred to in Sections A and B of the Annex to Regulation (EU) No 909/2014 that the applicant CSD is authorised to provide;
- (iii) it is structured following the list of banking-type ancillary services referred to in Section C of the Annex to Regulation (EU) No 909/2014;
- (l) evidence supporting the reasons for not settling the cash payments of the CSD's securities settlement system through accounts opened with a central bank of issue of the currency of the country where the settlement takes place;
- (m) detailed information concerning the following aspects of the relation between the CSD and the designated credit institution:
- (i) the IT platform used for the settlement of the cash leg of securities transactions, including an overview of the IT organisation and an analysis of the related risks and how they are mitigated;
- (ii) the applicable rules and procedures that ensure compliance with the requirements concerning settlement finality referred to in Article 39 of Regulation (EU) No 909/2014;
- (iii) the operation and the legal arrangements of the DVP process, including the procedures used to address the credit risk resulting from the cash leg of a securities transaction;
- (iv) the selection, monitoring and management of the interconnections with any other third parties involved in the process of cash transfers, in particular the relevant arrangements with third parties involved in the process of cash transfers;
- (v) the service level agreement establishing the details of functions to be outsourced by the CSD to the designated credit institution or from the designated credit institution to the CSD and any evidence that demonstrates compliance with the outsourcing requirements set out in Article 30 of Regulation (EU) No 909/2014;
- (vi) the detailed analysis contained in the recovery plan of the applicant CSD about any impact of the provision of banking-type ancillary services on the provision of core CSD services;
- (vii) the disclosure of possible conflicts of interests in the governance arrangements resulting from the banking-type ancillary services, and the measures taken to address them;
- (viii) evidence that demonstrates that the credit institution has the necessary contractual and operational ability to have prompt access to the securities collateral located in the CSD and related to the provision of intraday credit and, as the case may be, short-term credit.
Article 93
Specific requirements
Where the CSD applies for authorisation to designate more than one credit institution to provide banking-type ancillary services, its application shall include the following information:
- (a) the information referred to Article 91 for each of the designated credit institution;
- (b) a description of the role of each designated credit institution and the relations between them.
Where the application to be authorised in accordance with point (a) or (b) of Article 54(2) of Regulation (EU) No 909/2014 is submitted after the authorisation referred to in Article 17 of that Regulation has been obtained, the applicant CSD shall identify and inform the competent authority of substantive changes referred to in Article 16(4) of Regulation (EU) No 909/2014 unless it has already provided the information in the process of review and evaluation referred to in Article 22 of that Regulation.
Article 94
Standard forms and templates for the application
An applicant CSD shall provide an application for the authorisations referred to in points (a) and (b) of Article 54(2) of Regulation (EU) No 909/2014 in the format provided in Annex III to this Regulation.
An applicant CSD shall submit the application referred to in paragraph 1 in a durable medium.
An applicant CSD shall provide a unique reference number for each document that it submits in the application referred to in paragraph 1.
An applicant CSD shall ensure that the information submitted in the application referred to in paragraph 1 clearly identifies to which specific requirement of this Chapter that information refers to and in which document that information is provided.
An applicant CSD shall provide its competent authority with a list of all the documents provided in the application referred to in paragraph 1 accompanied by their reference number.
All information shall be submitted in the language indicated by the competent authority. The competent authority may ask the CSD to submit the same information in a language customary in the sphere of international finance.
CHAPTER XV FINAL PROVISIONS
Article 95
Transitional provisions
Information referred to in Article 17(2) of this Regulation, shall be provided to the competent authority at the latest six months before the date referred to in Article 96(2).
Information referred to in Article 24(2) of this Regulation shall be provided to the competent authority at the latest six months before the date referred to in Article 96(2).
Information referred to in points (j) and (r) of Article 41 and in points (d), (f), (h), (i), and (j) of Article 42(1) of this Regulation shall be provided from the date referred to in Article 96(2).
Article 96
Entry into force and application
This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.
Article 54 shall apply from the date of entry into force of the delegated acts adopted by the Commission pursuant to Articles 6(5) and 7(15) of Regulation (EU) No 909/2014, whichever is the later.
This Regulation shall be binding in its entirety and directly applicable in all Member States.
Done at Brussels, 11 November 2016.
For the Commission
The President
Jean-Claude JUNCKER
[^ntr1-L_2017065EN.01004801-E0001]: OJ L 257, 28.8.2014, p. 1.
[^ntr2-L_2017065EN.01004801-E0002]: Regulation (EU) No 648/2012 of the European Parliament and the Council of 4 July 2012 on OTC derivatives, central counterparties and trade repositories (OJ L 201, 27.7.2012, p. 1).
[^ntr3-L_2017065EN.01004801-E0003]: Regulation (EU) No 1095/2010 of 24 November 2010 of the European Parliament and of the Council establishing a European Supervisory Authority (European Securities and Markets Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/77/EC (OJ L 331, 15.12.2010, p. 84).
[^ntr4-L_2017065EN.01004801-E0004]: Directive 98/26/EC of the European Parliament and of the Council of 19 May 1998 on settlement finality in payment and securities settlement systems (OJ L 166, 11.6.1998, p. 45).
[^ntr5-L_2017065EN.01004801-E0005]: Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (OJ L 173, 12.6.2014, p. 349).
[^ntr6-L_2017065EN.01004801-E0006]: Directive 2006/43/EC of the European Parliament and of the Council of 17 May 2006 on statutory audits of annual accounts and consolidated accounts, amending Council Directives 78/660/EEC and 83/349/EEC and repealing Council Directive 84/253/EEC (OJ L 157, 9.6.2006, p. 87).
[^ntr7-L_2017065EN.01004801-E0007]: Regulation (EU) No 600/2014 of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Regulation (EU) No 648/2012 (OJ L 173, 12.6.2014, p. 84).
[^ntr8-L_2017065EN.01004801-E0008]: Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012 (OJ L 176, 27.6.2013, p. 1).
[^ntr9-L_2017065EN.01004801-E0009]: Regulation (EC) No 1606/2002 of the European Parliament and of the Council of 19 July 2002 on the application of international accounting standards (OJ L 243, 11.9.2002, p. 1).
ANNEX I
Details to be included in the application for recognition of third-country CSDs
(Article 25(12) of Regulation (EU) No 909/2014)
General information
| Items of information | Free text |
|---|---|
| Date of application | |
| Corporate name of the legal entity | |
| Registered address | |
| Name of the person assuming the responsibility for the application | |
| Contact details of the person assuming the responsibility for the application | |
| Name of other person(s) responsible for the compliance of the third-country CSD with Regulation (EU) No 909/2014 | |
| Contact details of the person(s) responsible for the compliance of the third-country CSD with Regulation (EU) No 909/2014 | |
| Identities of the shareholders or members that hold participations in the capital of the third-country CSD | |
| Identification of the group structure, including any subsidiary and parent company of the third-country CSD | |
| List of the Member States in which the third-country CSD intends to provide services | |
| Information regarding core services listed in Section A of the Annex to Regulation (EU) No 909/2014 that the third-country CSD intends to provide in the Union per Member State | |
| Information regarding ancillary services listed in Section B of the Annex to Regulation (EU) No 909/2014 that the third-country CSD intends to provide in the Union per Member State | |
| Information regarding any other services permitted under, but not explicitly listed in Section B of the Annex to Regulation (EU) No 909/2014 that the third-country CSD intends to provide in the Union per Member State | |
| Currency or currencies that the third-country CSD processes or intends to process | |
| Statistical data regarding the services that the third-country CSD intends to provide in the Union per Member State | |
| Assessment of the measures that the third-country CSD intends to take to allow its users to comply with any specific national laws of the Member State(s) in which the third-country CSD intends to provide its services | |
| Where the third country CSD intends to provide the core services referred to in points (1) and (2) of Section A of the Annex to Regulation (EU) No 909/2014, a description of the measures that the third-country CSD intends to take to allow its users to comply with the relevant law of the Member State in which the third-country CSD intends to provide such services as referred to in point (d) of Article 25(4) of Regulation (EU) No 909/2014. | |
| Rules and procedures that facilitate the settlement of transactions in financial instruments on the intended settlement date | |
| Third-country CSD's financial resources, form and methods in which they are maintained and arrangements to secure them | |
| Evidence that rules and procedures of the third-country CSD are fully compliant with the requirements applicable in the third country where it is established, including the rules concerning prudential, organisational, business continuity, disaster recovery and conduct of business aspects | |
| Details of any outsourcing arrangements | |
| Rules governing the finality of transfers of securities and cash | |
| Information regarding the participation in the securities settlement system operated by the third-country CSD, including the criteria for participation and the procedures for the suspension and orderly exit of participants that no longer meet its criteria | |
| Rules and procedures for ensuring the integrity of the securities issues | |
| Information on mechanisms established to ensure the protection of participants' and their clients' securities | |
| Information on third-country CSD links and links with other market infrastructures and on how the related risks are monitored and managed | |
| Information on rules and procedures put in place to manage the default of a participant | |
| Recovery plan | |
| Investment policy of the third-country CSD | |
| Information on procedures ensuring the timely and orderly settlement and transfer of the assets of clients and participants to another CSD in case of the CSD's default | |
| Information on all pending judicial or extrajudicial proceedings, including administrative, civil or arbitration proceedings, which may cause significant financial and other costs to the third-country CSD Information on any final decisions resulting from the proceedings referred to above | |
| Information regarding the handling of conflicts of interest by the third-country CSD | |
| Information to be published on the ESMA website in accordance with Article 21(3) of Regulation (EU) No 909/2014, as regards Article 25 of that Regulation |
ANNEX II
CSD ancillary services records
(Article 29 of Regulation (EU) No 909/2014)
| No | Ancillary services under Regulation (EU) No 909/2014 | Types of records |
|---|---|---|
| A. CSD's non-banking-type ancillary services that do not entail credit or liquidity risks | A. CSD's non-banking-type ancillary services that do not entail credit or liquidity risks | A. CSD's non-banking-type ancillary services that do not entail credit or liquidity risks |
| 1 | Organising a securities lending mechanism, as agent among participants of a securities settlement system | (a) Identification of delivering/receiving parties; (b) Details regarding each securities lending/borrowing operation, including volume and value of securities and ISIN; (c) Purpose of each securities lending/borrowing operations; (d) Types of collateral; (e) Collateral valuation. |
| 2 | Providing collateral management services, as agent for participants in a securities settlement system | (a) Identification of delivering/receiving parties; (b) Details regarding each operation, including volume and value of securities and ISIN; (c) Types of collateral; (d) Purpose of collateral use; (e) Collateral valuation. |
| 3 | Settlement matching, instruction routing, trade confirmation, trade verification | (a) Identification of the entities for which the CSD provides such services; (b) Types of operations; (c) Details regarding each operation, including volume and value of securities and ISIN. |
| 4 | Services related to shareholders' registers | (a) Identification of the entities for which the CSD provides such services; (b) Types of services; (c) Details regarding each operation, including volume and value of securities and ISIN. |
| 5 | Supporting the processing of corporate actions, including tax, general meetings and information services | (a) Identification of the entities for which the CSD provides such services; (b) Types of services; (c) Details regarding each operation, including volume and value of securities/cash, beneficiaries of the operation and ISIN. |
| 6 | New issue services, including allocation and management of ISIN codes and similar codes | (a) Identification of the entities for which the CSD provides such services; (b) Types of services; (c) Details regarding each operation, including ISIN. |
| 7 | Instruction routing and processing, fee collection and processing and related reporting | (a) Identification of the entities for which the CSD provides such services; (b) Types of services; (c) Details regarding each operation, including volume and value of securities/cash, beneficiaries of the operation, ISIN and purpose of the operation. |
| 8 | Establishing CSD links, providing, maintaining or operating securities accounts in relation to the settlement service, collateral management, other ancillary services | (a) Details regarding the CSD links, including identification of CSDs; (b) Types of services. |
| 9 | Providing general collateral management services as agent | (a) Identification of delivering/receiving parties; (b) Details regarding each operation, including volume and value of securities, ISIN; (c) Types of collateral; (d) Purpose of collateral use; (e) Collateral valuation. |
| 10 | Providing regulatory reporting | (a) Identification of the entities for which the CSD provides the reporting; (b) Types of services; (c) Details regarding the data provided, including the legal basis and the purpose. |
| 11 | Providing information, data and statistics to market/census bureaus or other governmental or inter-governmental entities | (a) Identification of the entities for which the CSD provides such services; (b) Types of services; (c) Details regarding the data provided, including the legal basis and the purpose. |
| 12 | Providing IT services | (a) Identification of the entities for which the CSD provides the services; (b) Types of services; (c) Details regarding IT services. |
| B. CSD's banking-type services directly related to core or ancillary services listed in Sections A and B of the Annex to Regulation (EU) No 909/2014 | B. CSD's banking-type services directly related to core or ancillary services listed in Sections A and B of the Annex to Regulation (EU) No 909/2014 | B. CSD's banking-type services directly related to core or ancillary services listed in Sections A and B of the Annex to Regulation (EU) No 909/2014 |
| 13 | Providing cash accounts to, and accepting deposits from, participants in a securities settlement system and holders of securities accounts, within the meaning of point 1 of Annex I to Directive 2013/36/EU of the European Parliament and of the Council[^ntr1-L_2017065EN.01010701-E0001] | (a) Identification of the entities for which the CSD provides such services; (b) Cash accounts details; (c) Currency; (d) Deposits amounts. |
| 14 | Providing cash credit for reimbursement no later than the following business day, cash lending to pre-finance corporate actions and lending securities to holders of securities accounts, within the meaning of point 2 of Annex I to Directive 2013/36/EU. | (a) Identification of the entities for which the CSD provides such services; (b) Types of services; (c) Details regarding each operation, including volume and value of securities/cash, ISIN; (d) Types of collateral; (e) Collateral valuation; (f) Purpose of operations; (g) Information about any incidents in relation to such services and remediating actions including follow-up. |
| 15 | Payment services involving processing of cash and foreign exchange transactions, within the meaning of point 4 of Annex I to Directive 2013/36/EU | (a) Identification of the entities for which the CSD provides such services; (b) Types of services; (c) Details regarding each operation, including volume of cash, and purpose of operation. |
| 16 | Guarantees and commitments related to securities lending and borrowing, within the meaning of point 6 of Annex I to Directive 2013/36/EU | (a) Identification of the entities for which the CSD provides such services; (b) Types of services; (c) Details regarding each operation, including volume and value of securities/cash and purpose of operation. |
| 17 | Treasury activities involving foreign exchange and transferable securities related to managing participants' long balances, within the meaning of points 7(b) and (e) of Annex I to Directive 2013/36/EU | (a) Identification of the entities for which the CSD provides such services; (b) Types of services; (c) Details regarding each operation, including volume and value of securities/cash and purpose of operation. |
[^ntr1-L_2017065EN.01010701-E0001]: Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013 on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms, amending Directive 2002/87/EC and repealing Directives 2006/48/EC and 2006/49/EC (OJ L 176, 27.6.2013, p. 338).
ANNEX III
Templates for application by a CSD to designate a credit institution or to provide banking-type ancillary services
(Article 55 of Regulation (EU) No 909/2014)
Template 1
Where a CSD is applying to provide banking-type ancillary services in accordance with point (a) of Article 54(2) of Regulation (EU) No 909/2014, the following information shall be provided:
| The scope of information to be submitted in accordance | Unique reference number of the document | Title of the document | Chapter or section or page of the document where the information is provided |
|---|---|---|---|
| (1) the corporate name of the applicant CSD, its legal status and legal address in the Union | |||
| (2) a copy of the decision of the management body of the applicant CSD to apply for authorisation and the minutes from the meeting where the management body approved the content of the application file and its submission | |||
| (3) contact details of the person responsible for the application for authorisation, where different from the person submitting the application for authorisation referred to under Article 17 of Regulation (EU) No 909/2014 | |||
| (4) evidence that proves the existence of an authorisation referred to in point (a) of Article 54(3) of Regulation (EU) No 909/2014 | |||
| (5) evidence that the applicant CSD meets the prudential requirements referred to in Article 59(1), (3) and (4) of Regulation (EU) No 909/2014 and the supervisory requirements referred to in Article 60 of that Regulation | |||
| (6) evidence, that proves that the applicant CSD complies with point (d) of Article 54(3) of Regulation (EU) No 909/2014 | |||
| (7) details concerning the recovery plan referred to in point (f) of Article 54(3) of Regulation (EU) No 909/2014 | |||
| (8) a programme of operations that fulfils the following conditions: | |||
| (a) it includes a list of the banking-type ancillary services referred to in Section C of the Annex to Regulation (EU) No 909/2014 that are intended to be provided | |||
| (b) it includes an explanation of how the banking-type ancillary services referred to in Section C of the Annex to Regulation (EU) No 909/2014 are directly related to any core or ancillary services referred to in Section A and Section B of the Annex to Regulation (EU) No 909/2014 that the CSD is authorised to provide | |||
| (c) it is structured following the list of banking-type ancillary services referred to in Section C of the Annex to Regulation (EU) No 909/2014 | |||
| (9) evidence supporting the reasons for not settling cash payments of the CSD's securities settlement system through accounts opened with a central bank of issue of the currency of the country where the settlement takes place | |||
| (10) detailed information on the arrangements which ensure that the provision of banking-type ancillary services applied for do not affect the smooth provision of the core CSD services referred to in Section A of the Annex to Regulation (EU) No 909/2014, including in particular the following information: | |||
| (a) the IT platform used for the settlement of the cash leg of securities transactions, including an overview of the IT organisation and an analysis of the related risks and how they are mitigated | |||
| (b) the operation and legal arrangements of the DVP process and, in particular, the procedures used to address the credit risk resulting from the cash leg of securities transactions | |||
| (c) the selection, monitoring, legal documentation and management of interconnections with any other third parties involved in the process of cash transfers, in particular the relevant arrangements with third parties involved in the process of cash transfers | |||
| (d) the detailed analysis in the recovery plan of the applicant CSD of any impact of the provision of banking-type ancillary services on the provision of core CSD services; | |||
| (e) the disclosure of possible conflicts of interests in the governance arrangements resulting from the provision of banking-type ancillary services, and the measures taken to address them | |||
| (11) where relevant, identification of any substantive changes to the documentation supplied for obtaining the authorisation referred to in Article 17(2) of Regulation (EU) No 909/2014, following the same table format, if the updated documentation has not already been provided in the course of the review and evaluation referred to in Article 22 of Regulation (EU) No 909/2014 |
Where the application for authorisation referred to in point (a) of Article 54(2) of Regulation (EU) No 909/2014 is submitted at the same time as the application for authorisation referred to in Article 17 of that Regulation, the following information shall be provided by the applicant CSD in addition to the information requested under Article 17 of Regulation (EU) No 909/2014 and this Regulation:
| 1 | Name of the person responsible for the application where different from the one submitting the application under Article 17 of Regulation (EU) No 909/2014 | … |
| 2 | Contact details of the person responsible for the application, where different from the one submitting the application under Article 17 of Regulation (EU) No 909/2014 | … |
| 3 | Date of receipt of the authorisation referred to in point (a) of Article 54(3) | … |
Template 2
Where a CSD is applying to designate a separate credit institution to provide banking-type ancillary services in accordance with point (b) of Article 54(2) of Regulation (EU) No 909/2014:
| The scope of information to be submitted | Unique reference number of the document | Title of the document | Chapter or section or page of the document where the information is provided |
|---|---|---|---|
| (1) the corporate name of the applicant CSD, its legal status and legal address in the Union | |||
| (2) a copy of the decision of the management body of the applicant CSD to apply for authorisation and the minutes from the meeting where the management body approved the content of the application file and its submission | |||
| (3) the contact details of the person responsible for the application for authorisation, where the person is not the same person as the one submitting the application for authorisation referred to in Article 17 of Regulation (EU) No 909/2014 | |||
| (4) the corporate name of the credit institution to be designated in accordance with point (b) of Article 54(2) of Regulation (EU) No 909/2014, its legal status and legal address in the Union | |||
| (5) evidence that the credit institution referred to in point (4) has obtained an authorisation referred to in point (a) of Article 54(4) of Regulation (EU) No 909/2014 | |||
| (6) the articles of incorporation and, where relevant, other statutory documentation of the designated credit institution | |||
| (7) the ownership structure of the designated credit institution, including the identity of its shareholders | |||
| (8) the identification of any common shareholders of the applicant CSD and the designated credit institution and any participations between the applicant CSD and the designated credit institution | |||
| (9) evidence that the designated credit institution meets the prudential requirements referred to in Article 59(1), (3) and (4) and the supervisory requirements referred to in Article 60 of Regulation (EU) No 909/2014 | |||
| (10) evidence, including a memorandum of association, financial statements, audit reports, reports from risk committees, or other documents, which proves that the designated credit institution complies with point (e) of Article 54(4) of Regulation (EU) No 909/2014 | |||
| (11) the details of the recovery plan referred to in point (g) of Article 54(4) of Regulation (EU) No 909/2014 | |||
| (12) a programme of operations that fulfils the following conditions: | |||
| (a) it includes a list of the banking-type ancillary services referred to in Section C of the Annex to Regulation (EU) No 909/2014 that are intended to be provided | |||
| (b) it includes an explanation of how the banking-type ancillary services referred to in Section C of the Annex to Regulation (EU) No 909/2014 are directly related to any core or ancillary services referred to in Section A and Section B of the Annex to Regulation (EU) No 909/2014 that the applicant CSD is authorised to provide | |||
| (c) it is structured following the list of banking-type ancillary services referred to in Section C of the Annex to Regulation (EU) No 909/2014 | |||
| (13) details concerning the reasons for not settling the cash payments of the CSD's securities settlement system through accounts opened with a central bank of issue of the currency of the country where the settlement takes place | |||
| (14) detailed information concerning the structural organisation of the relations between the CSD and the designated credit institution, including in particular the following information: | |||
| (a) the IT platform used for the settlement of the cash leg of securities transactions, including an overview of the IT organisation and an analysis of the related risks and how they are mitigated | |||
| (b) the applicable rules and procedures that ensure compliance with the requirements concerning settlement finality referred to in Article 39 of Regulation (EU) No 909/2014 | |||
| (c) the operation and the legal arrangements of the DVP process and in particular, the procedures used to address the credit risk resulting from the cash leg of a securities transaction | |||
| (d) the selection, monitoring and management of the interconnections with any other third parties involved in the process of cash transfers, in particular the relevant arrangements with third parties involved in the process of cash transfers | |||
| (e) the service level agreement establishing the details of functions to be outsourced by the CSD to the designated credit institution and any evidence that demonstrates compliance with the outsourcing requirements as set out in Article 30 of Regulation (EU) No 909/2014 | |||
| (f) the detailed analysis contained in the recovery plan of the applicant CSD of any impact of the provision of banking-type ancillary services on the provision of core CSD services | |||
| (g) the disclosure of possible conflicts of interests in the governance arrangements resulting from the banking-type ancillary services, and the measures taken to address them | |||
| (h) evidence that demonstrates that the credit institution has the necessary contractual and operational ability to have prompt access to the securities collateral located in the CSD and related to the provision of intraday credit and, as the case may be, short-term credit | |||
| (15) where relevant, identification of any changes to the documentation supplied for obtaining the authorisation referred to in Article 17(2) of Regulation (EU) No 909/2014, following the same table format, where the updated documentation has not already been provided in the course of the review and evaluation referred to in Article 22 of Regulation (EU) No 909/2014 |
Where the application for authorisation referred to in point (b) of Article 54(2) of Regulation (EU) No 909/2014 is submitted at the same time as the application for authorisation referred to in Article 17 of that Regulation, the following information shall be provided where, in addition to the information requested under Article 17 of Regulation (EU) No 909/2014 and this Regulation:
| 1 | Corporate name of the entity designated to provide banking-type ancillary services | … |
| 2 | Legal address | … |
| 3 | Name of the person responsible for the application | … |
| 4 | Contact details of the person responsible for the application | … |
| 5 | Identification of the parent companies of the designated credit institution(s), if any | … |
| 6 | Competent authority of the designated credit institution(s) | … |
| 7 | Date of receipt of the authorisation referred to in point (a) of Article 54(4) of Regulation (EU) No 909/2014 | … |
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