ESMA has responded to the Commission's consultation on Central Securities Depositories (CSDs) and securities settlement. Its recommendations include aligning definitions with international best practice as well as specific comments on many of the proposed defined terms. It is pleased the Commission has taken into account suggestions made by ESMA's predecessor, CESR, and that it has noted that not all the barriers to clearing and settlement identified in the Giovannini report have been dismantled. On settlement discipline, it says this should apply regardless of the trading method and suggests some measures to enforce both settlement discipline and sanction settlement fails. (Source:ESMA response to the European Commission consultation on CSDs and securities settlement)