03 February 2014

ESMA publishes a tender for CSD Regulation Technical Standards Cost-Benefit Analysis

Candidates should have extensive demonstrable experience in drafting this type of product, as well as significant knowledge of the CSD and settlement industry within the EU and the upcoming CSD Regulation Framework. ESMA invites responses to this tender by 10 February, 2014.

The required product is constituted by a report containing a cost-benefit analysis (CBA) regarding the draft regulatory and implementing technical standards ESMA has to draft under the Regulation on improving securities settlement in the EU and on central securities depositories (CSDR).

ESMA is required to develop around 35 technical standards under the CSDR. These cover such matters where a quantitative analysis of costs and benefits is required , including:

• measures to prevent settlement fails (Article 6);
• settlement fails monitoring and conditions under which a participant is deemed to consistently and systematically fail to deliver the financial instruments (Article 7(8));
• conditions for participations of CSDs in entities which not provide services listed in Sections A and B of the Annex (Article 16);
• integrity of the issue (Article 34);
• operational risks (Article 42);
• investment policy (Article 43);
• provisions on access and links (Articles 30(5,6);45; 47(5,6); 50(5,6); 51(4,5).

According to Articles 10 and 15 of ESMA Regulation on regulatory and implementing technical standards (RTS and ITS), ESMA “shall conduct open public consultations and shall analyse the potential, related costs and benefits, unless such consultations and analyses are disproportionate in relation to the scope and impact of the draft implementing technical standards concerned or in relation to the particular urgency of the matter”.

ESMA will develop the above mentioned cost-benefit analysis and intends to profit from an independent assessment of the costs and benefits of its proposals for RTS and ITS under the CSDR.

A Report should be delivered to ESMA containing the detailed impact of the each individual technical option (benefits and costs of the option relative to the baseline). ESMA will further specify the key areas where quantitative analysis is expected.

Full call for tender

© ESMA