The European Securities and Markets Authority (ESMA) has launched a consultation on Guidelines on participant default rules and procedures under CSDR.
The purpose of the proposed guidelines is to specify the steps a central securities depository (CSD) should set up in its rules and follow in case insolvency proceedings are opened with respect to one or more of its participants. The proposed guidelines are based on the 2012 CPMI-IOSCO Principles for financial markets infrastructures (PFMIs).
ESMA is seeking input and responses from stakeholders, including CSDs and supervisory authorities, in order to finalise them before CSDs start applying for authorisation. The consultation closes on 30 June 2016. The ESMA statement is available here.