Article 13
Details of the system monitoring settlement fails
1.
CSDs shall establish a system that enables them to monitor the number and value of settlement fails for every intended settlement date, including the length of each settlement fail expressed in business days. That system shall, for each settlement fail, collect the following information:
(a)
the reason for the settlement fail, based on the information available to the CSD;
(b)
any settlement restrictions such as the reservation, blocking or earmarking of financial instruments or cash that make those financial instruments or cash unavailable for settlement;
(c)
the type of financial instrument, within the following categories, affected by the settlement fail:
(i)
transferable securities as defined in point (a) of Article 4(1)(44) of Directive 2014/65/EU;
(ii)
sovereign debt as defined in Article 4(1)(61) of Directive 2014/65/EU;
(iii)
transferable securities as defined in point (b) of Article 4(1)(44) of Directive 2014/65/EU, other than sovereign debt referred to in point (ii);
(iv)
transferable securities as defined in point (c) of Article 4(1)(44) of Directive 2014/65/EU;
(v)
(vi)
units in collective investment undertakings, other than ETFs;
(vii)
money-market instruments, other than sovereign debt referred to in point (ii);
(viii)
emission allowances;
(ix)
other financial instruments;
(d)
the type of transaction, within the following categories, affected by the settlement fail:
(i)
purchase or sale of financial instruments;
(ii)
collateral management operations;
(iii)
securities lending/borrowing operations;
(iv)
repurchase transactions;
(v)
other transactions, which can be identified by more granular ISO codes as provided by the CSD;
(e)
the place of trading and of clearing of the affected financial instruments, where applicable;
(f)
the type of settlement instruction, within the following categories, affected by the settlement fail:
(i)
an intra-CSD settlement instruction, where the failing and the receiving parties are both participants in the same securities settlement system; or
(ii)
a cross-CSD settlement instruction, where the failing and the receiving parties are participants in two different securities settlement systems or one of the participants is a CSD;
(g)
the type of settlement instruction, within the following categories, affected by the settlement fail:
(i)
FoP settlement instructions that consist of deliver free of payment (‘DFP’) and receive free of payment (‘RFP’) settlement instructions;
(ii)
delivery versus payment (‘DVP’) and receive versus payment (‘RVP’) settlement instructions;
(iii)
delivery with payment (‘DWP’) and receive with payment (‘RWP’) settlement instructions; or
(iv)
payment free of delivery (‘PFOD’) settlement instructions that consist of debiting payment free of delivery (‘DPFOD’) and crediting payment free of delivery (‘CPFOD’) settlement instructions;
(h)
the type of securities accounts connected to the settlement fail, including:
(i)
a participant's own account;
(ii)
a participant's client individual account;
(iii)
a participant's client's omnibus account;
(i)
the currency in which the settlement instructions are denominated.
2.
CSDs shall establish working arrangements with the participants referred to in fields 17 and 18 of Table 1 in Annex I which have the most significant impact on their securities settlement systems and, where applicable, with relevant CCPs and trading venues to analyse the main reasons for the settlement fails.