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

CHAPTER VIII RECORD-KEEPING (Article 29(3) of Regulation (EU) No 909/2014)

Article 53 General requirements

1. A CSD shall maintain full and accurate records of all its activities as specified in this Regulation at all times, including during disruption events when the business continuity policy and disaster recovery plans are activated. Those records shall be readily accessible.

2. The records kept by a CSD shall cover separately each individual service provided by the CSD in accordance with Regulation (EU) No 909/2014.

3. A CSD shall keep records in a durable medium that allows information to be provided to the authorities referred to in Article 29(2) of Regulation (EU) No 909/2014. The record-keeping system shall ensure that all of the following conditions are met:

(a) each key stage of the processing of records by the CSD may be reconstituted;

(b) the original content of a record before any corrections or other amendments may be recorded, traced and retrieved;

(c) measures are put in place to prevent unauthorised alteration of records;

(d) measures are put in place to ensure the security and confidentiality of the data recorded;

(e) a mechanism for identifying and correcting errors is incorporated in the record-keeping system;

(f) the timely recovery of the records in the case of a system failure is ensured within the record-keeping system.

Article 54 Transaction/settlement instruction (Flow) records

1. A CSD shall maintain records of all transactions, settlement instructions and orders concerning settlement restrictions that it processes and it shall ensure that its records include all necessary information to accurately identify them.

2. In relation to every settlement instruction and order concerning settlement restrictions received, a CSD shall, immediately upon receiving the relevant information, make and keep updated a record of the following details, depending on whether the settlement instruction or settlement restrictions covers securities or cash only, or both securities and cash:

(a) type of settlement instruction as referred to in point (h)(v) of Article 42(1);

(b) type of transaction, as follows:

(i)

purchase or sale of securities;

(ii)

collateral management operations;

(iii)

securities lending/borrowing operations;

(iv)

repurchase transactions;

(v)

others;

(c) unique instruction reference of the participant;

(d) trade date;

(e) intended settlement date;

(f) settlement timestamp;

(g) timestamp of the moment of entry of the settlement instruction into the securities settlement system;

(h) timestamp of the moment of irrevocability of the settlement instruction;

(i) matching timestamp in case of matched settlement instructions;

(j) securities account identifier;

(k) cash account identifier;

(l) settlement bank identifier;

(m) identifier of the instructing participant;

(n) identifier of the instructing participant's counterpart;

(o) identifier of the instructing participant's client, where known to the CSD;

(p) identifier of the client of the instructing participant's counterpart, where known to the CSD;

(q) securities identifier;

(r) settlement currency;

(s) settlement cash amount;

(t) quantity or nominal amount of securities;

(u) status of the settlement instruction covering:

(i)

pending instructions which can still settle on the intended settlement date;

(ii)

failed settlement instructions which cannot settle anymore on the intended settlement date;

(iii)

fully settled settlement instructions;

(iv)

partially settled settlement instructions, including the settled part and the missing part of either financial instruments or cash;

(v)

cancelled settlement instructions, including information whether it is cancelled by the system or by the participant.

For each of the categories of settlement instructions referred to in the first subparagraph, the following information shall be recorded:

(a)

whether an instruction is matched or not matched;

(b)

whether an instruction can settle partially;

(c)

whether an instruction is on hold;

(d)

where relevant, what the reasons are for instruction being pending or failing

(e)

place of trading;

(f)

if applicable, place of clearing;

where a buy-in process is initiated in accordance with Article 7(3) of Regulation (EU) No 909/2014, details regarding:

(i)

the final results of the buy-in process on the last business day of the deferral period at the latest, including the number and value of the financial instruments where the buy-in is partially or fully successful;

(ii)

the payment of cash compensation, including the amount of the cash compensation, where the buy-in is not possible, fails or is partially successful;

(iii)

the cancellation of the initial settlement instruction;

(iv)

for each settlement fail, the amount of the penalties referred to in Article 7(2) of Regulation (EU) No 909/2014.

Article 55 Position (Stock) records

1. A CSD shall keep records of positions corresponding to all securities accounts that it maintains. Separate records shall be held for each account kept in accordance with Article 38 of Regulation (EU) No 909/2014.

2. A CSD shall keep records of the following information:

(a) identifier of each issuer for which the CSD provides the core service referred to in point 1 or 2 of Section A of the Annex to Regulation (EU) No 909/2014;

(b) identifier of each securities issue for which the CSD provides the core services referred to in point 1 or 2 of Section A of the Annex to of Regulation (EU) No 909/2014, the law under which the securities recorded by the CSD are constituted and the country of incorporation of the issuers of each securities issue;

(c) identifier of each securities issue recorded in securities accounts not centrally maintained by the CSD, the law under which the securities recorded by the CSD are constituted and the country of incorporation of the issuers of each securities issue;

(d) identifier of the issuer CSD or of the relevant third country entity performing similar functions to an issuer CSD for each securities issue referred to in point (c);

(e) issuers' securities accounts identifiers, in the case of issuer CSDs;

(f) issuers' cash accounts identifiers, in the case of issuer CSDs;

(g) identifiers of settlement banks used by each issuer, in the case of issuer CSDs;

(h) participants' identifiers;

(i) participants' country of incorporation;

(j) participants' securities accounts identifiers;

(k) participants' cash accounts identifiers;

(l) identifiers of settlement banks used by each participant;

(m) country of incorporation of settlement banks used by each participant.

3. At the end of each business day, a CSD shall record for each position the following details to the extent that they are relevant for the position:

(a) identifiers of participants and of other account holders;

(b) type of securities accounts according to whether a securities account belongs to a participant (‘participant's own account’), to one of its clients (‘individual client segregation’) or to several of its clients (‘omnibus client segregation’);

(c) for each securities issue identifier (ISIN), end-of-day balances of securities accounts covering the number of securities;

(d) for each securities account and ISIN under point (c), the number of securities subject to settlement restrictions, type of the restrictions and the identity of the beneficiary of restrictions at the end of day.

4. A CSD shall keep records of settlement fails and the measures adopted by the CSD and its participants to prevent and address settlement fails in accordance with Articles 6 and 7of Regulation (EU) No 909/2014.

Article 56 Ancillary Services Records

1. A CSD shall keep the types of records specified in Annex II to this Regulation for each of the ancillary services provided by a CSD in accordance with Sections B and C of the Annex to Regulation (EU) No 909/2014, including the end-of-day balances of the cash accounts provided by the CSD or the designated credit institution for each currency.

2. Where a CSD provides ancillary services other than those explicitly mentioned in Sections B or C of the Annex to Regulation (EU) No 909/2014, it shall keep adequate records of those services.

Article 57 Business Records

1. A CSD shall maintain adequate and orderly records of activities related to its business and internal organisation.

2. The records referred to in paragraph 1 shall reflect any substantive changes in the documents held by the CSD and shall include the following:

(a) the organisational charts for the management body, senior management, relevant committees, operational units and all other units or divisions of the CSD;

(b) the identities of the shareholders, whether natural or legal persons, that exercise direct or indirect control over the management of the CSD or that have participations in the capital of the CSD and the amounts of those holdings;

(c) participations of the CSD in the capital of other legal entities;

(d) the documents attesting the policies, procedures and processes required under the CSD's organisational requirements and in relation to the services provided by the CSD;

(e) the minutes of management body meetings and of meetings of senior management committees and other committees;

(f) the minutes of meetings of the user committees;

(g) the minutes of consultation groups with participants and clients, if any;

(h) internal and external audit reports, risk-management reports, internal control and compliance reports, including responses from the senior management to the reports;

(i) all outsourcing contracts;

(j) business continuity policy and disaster recovery plan;

(k) records reflecting all assets, liabilities and capital accounts of the CSD;

(l) records reflecting all costs and revenues, including costs and revenues which are accounted separately in accordance with Article 34(6) of Regulation (EU) No 909/2014;

(m) formal complaints received, including information on the complainant's name and address; the date when the complaint was received; the name of all persons identified in the complaint; a description of the nature and content of the complaint; and the date when the complaint was resolved;

(n) records of any interruption of services or dysfunction, including a detailed report on the timing, effects and remedial actions of that interruption or dysfunction;

(o) records of the results of the back and stress tests performed by the CSDs providing banking-type ancillary services;

(p) written communications with the competent authority, ESMA and relevant authorities;

(q) legal opinions received in accordance with the relevant provisions on organisational requirements in accordance with Chapter VII of this Regulation;

(r) documentation regarding link arrangements in accordance with Chapter XII of this Regulation;

(s) tariffs and fees applied to the different services, including any discount or rebate.

Article 58 Additional records

A CSD shall keep the additional records requested by the competent authority for the purpose of enabling the competent authority to monitor compliance of the CSD with Regulation (EU) No 909/2014.