On 23 July 2014, ESMA published the request (dated 23 June 2014) from the European Commission for provisional technical advice from ESMA on the CSD Regulation. The requested technical advice relates to: (i) the calculation of a deterrent and proportionate level of cash penalties to be imposed on participants failing to deliver financial instruments on the agreed settlement date, taking into account asset type, liquidity of the financial instruments and the type of the transactions; and (ii) the assessment of “substantial importance” in the context of the cooperation arrangements between home and host national regulators for the supervision of a CSD where the activities of the CSD are “of substantial importance for the functioning of the securities markets and the protection of the investors” in the host Member State. Under the CSD Regulation, a CSD will be able to passport into other EU member states once authorized in its home member state. ESMA is required to deliver its technical advice nine months after the CSD Regulation enters into force, which is expected in September 2014.

The request is available at: