A Commission Delegated Regulation amending regulatory technical standards on settlement discipline, published by the Council on 8 July 2026, significantly expands reporting obligations for central securities depositories (CSDs) and competent authorities. The regulation updates Annexes I and II of Delegated Regulation (EU) 2018/1229, introducing more granular data requirements on settlement fails to enhance oversight under the Central Securities Depositories Regulation (CSDR).
Annex I amendments, effective from the date of adoption, replace rows 17, 18, and 41 in Table 1: CSDs must now report the top 10 participants with highest settlement fail rates by Legal Entity Identifier (LEI), including volume and value of instructions, fail counts, percentages, and rates (to two decimal places). Table 2 is replaced entirely, requiring CSDs to report daily settlement fail data to competent authorities on a monthly basis, broken down by place of trading (MIC code), financial instrument type, transaction type, internal versus cross-system settlement, and instruction type (DVP, DWP, PFOD, FoP).
Annex II adds new rows 19–25 to Annex III, Table 1, mandating annual data per financial instrument type: number and value of instructions and fails, annual fail rates (volume and value), and free-text explanations of main reasons and proposed remedial measures. The regulation aims to improve settlement discipline by providing authorities with more precise and frequent data to identify and address fail patterns.
Impact on stakeholders
CSDs face a moderate increase in compliance burden due to more granular daily and annual reporting, requiring system upgrades and additional data processing. Competent authorities gain enhanced oversight capabilities, enabling earlier detection of systemic risks. Market participants, particularly the top 10 failing participants per CSD, face greater transparency as their fail rates become reportable by LEI, potentially increasing reputational pressure. The regulation supports investor protection by improving settlement efficiency, though smaller CSDs may face disproportionate administrative costs relative to larger peers.
Institutional follow-up
The delegated regulation will enter into force on the twentieth day following its publication in the Official Journal of the European Union, unless the European Parliament or Council objects within the scrutiny period. CSDs and competent authorities must adapt their reporting systems to comply with the new requirements by the effective date.