FSB Questionnaire November 2020 FSB Questionnaire ID2S Contents Part I: Legal entity and general contract/service information: ................................................................. 2 Part II: Rulebook / Contractual provisions regarding termination ............................................................ 5 Part III: Prior to resolution, during signs of distress at the participant ................................................... 12 Part IV: During and after resolution ....................................................................................................... 17 Part V: Arrangements and operational processes to facilitate continued access in resolution ............. 23 1 Public FSB Questionnaire ID2S Part I: Legal entity and general contract/service information: 1. Please provide the following details: a) Full Legal Name ID2S S.A b) Legal Entity Identification Number (LEI) 9695005903WM8LGWIQ64 c) Jurisdiction of incorporation and registered number in the relevant corporate registry ID2S S.A is incorporated in Paris, France on 6 December 2010. Company number - 528 817 307. d) Supervisory, resolution or other relevant regulatory authority responsible for overseeing the activities of your organisation in (i) the relevant jurisdiction(s) of incorporation, and (ii) if different from the jurisdiction of incorporation, the relevant jurisdiction(s) of operation. Where an FMI is overseen by more than one regulatory authority, please also indicate which is the principal/ home regulator of the FMI and the relevant function(s) regulated by the respective authorities. i. The Autorité des marchés financiers (AMF) is an independent public body that regulates participants and products in France's financial markets. The Banque de France (BdF) is an independent institution governed by French and European law, and a member of the Eurosystem, which is the federal system comprising the European Central Bank and the national central banks of the euro area. ii. The AMF and BdF jointly regulate ID2S. e) The ownership arrangement of the legal entity (e.g. is it majority owned by its users?) ID2S is owned by Orange (94%) and Citigroup Financial Products Inc. (6%). 2. Please provide the following information: a) Hyperlink to the published FMI disclosure template under the Disclosure Framework for Financial Market Infrastructures.1 N/A 1 See BIS-IOSCO, Principles for financial market infrastructures: Disclosure framework and Assessment methodology, 2012 (December). 2 Public FSB Questionnaire ID2S b) a list or description of services provided, including a summary of the key ongoing access requirements that you require of members for each service (including operational, financial, and capital requirements). ID2S is an Issuer CSD, designed to service Money Market instruments. ID2S provides core CSD services (notary service, central maintenance service and settlement service), supporting use of TARGET2-Securities (T2S) and provides ancillary asset services (settlement matching, instruction routing, processing of corporate actions, new issuance service, provision of data and statistics). ID2S also provides Middle Office services to support trading venue NowCP. The services are only provided bundled (not separately), and the entry requirements are standard for all participants (custodian banks and Issuing and Paying Agents). Any cash payment related to securities transactions and transfers of securities is made in a Dedicated Cash Account (DCA) held by the participant with a participating central bank at T2S. Each securities account must have assigned at least one default DCA in T2S. Each DCA must have assigned a payments module account in TARGET2. ID2S does not provide a cash accounts and ID2S does not provide banking services. In addition to the AML and other legal risks, all onboarding is subject to an assessment for financial and operational risks, in accordance with the CSDR (Articles 20, 37, 67 & 89 or Regulation 2017/392; Article 33 of Regulation 909/2014). The financial resources of the participant have to be sufficient to ensure continuity of the ID2S settlement operations and meet the financial obligations of the participant towards ID2S. We therefore consider the following criteria for the assessment of the financial risk related to the participant: Treasury: the participant has to be able to fulfil its contractual obligation vis-à-vis ID2S’ services that will be provided (minimal threshold being set to 1 year of fees); Settlement activity: the participant has sufficient financial resources to fulfil its settlement instructions within the Securities Settlement System operated by ID2S. Solvency: when the participant is a regulated entity, the participant disposes over sufficient capital to meet applicable prudential requirements. The assessment further measures whether the participant has adequate operational capacity to participate in ID2S (human resources, facilities and infrastructure). 3 Public FSB Questionnaire ID2S The following criteria are considered to assess the operational capacity of the participant: a. The participant has a sound and robust risk management framework that allows a strong identification, assessment, monitoring and reporting of its internal and external risks, that could spread to ID2S and its other participants; b. The participant’s employees have enough experience to roll out the risk management framework and manage incidents; c. The participant has robust business continuity and disaster recovery plans, which are updated regularly (at least yearly) and that is tested on a yearly basis. 3. Do your members/ clients access your services directly or through an intermediary? All ID2S participants have direct access to ID2S services. No participant has access through an intermediary. 4. Do your members/ clients need a specific software or IT programme to receive your services? If the answer is ‘yes’, is such software/ IT programme your proprietary product or a specific third party product (please also consider whether specific plug-ins that you require clients to run only run in combination with certain software, e.g. Microsoft products)? No, a specific software or IT programme is not needed to receive ID2S services. However, ID2S Participates may opt for a connectivity to a U2A interface as an alternative to our A2A SWIFT connectivity. 5. If your contracts are all governed by one governing law, please specify which governing law this is. If there are different governing laws, please specify the main governing laws applicable and explain whether this is dependent on the location of the services provided or as negotiated with the members/ client, or any other reason. ID2S is a company incorporated under the laws of France, and all contracts are governed by French law. All services are provided from France. 6. Are there any other service providers or FMIs (for example, CSDs, payment systems or other infrastructure) that a member / client would need to have access to in order to receive your services? Please provide the names of those types of service providers and their regulatory status, where applicable. ID2S participants do not need to have access to other service providers. Participants can opt to use SWIFT to access ID2S. 4 Public FSB Questionnaire ID2S The underlying clients (issuers and investors) of the participants of ID2S need to have access to NowCP, licensed as an investment firm by the French ACPR (“Autorité de Contrôle Prudentiel et de Résolution”) for the services of non-guaranteed placement and for the operation of a multilateral trading system. NowCP’s operating rules are approved by the Autorité des Marchés Financiers. 7. Does your operating framework recognise the continued operations of FMI participants once they enter into resolution (e.g. as under the Bank of England’s Resolvability Assessment Framework, or the Single Resolution Board’s Expectations for Banks)? Yes, ID2S has implemented and tested a procedure describing which steps ID2S follows where an insolvency proceeding is opened against one of its participants, in accordance with article 41 of Regulation (EU) 909/2014. The procedure aims at ensuring that ID2S takes timely actions to minimise the impact of the suspension on the other participants, and on the underlying clients of the defaulting participant to the extent possible; and continue to meet its obligations. Part II: Ruleboo k / Contractual pr ovisions regarding termination 2 8. Discretionary termination rights. a) Rule Book / Participation agreement provisions: which provisions give rise to a right to terminate a service user’s access? Are the FMI’s termination provisions disclosed publicly? If so, please provide any link(s) to that information. ID2S terminates the access in the following cases: 1. When the elements that motivated the admission decision are no longer met; 2. When the participant does not fulfil its obligations to ID2S or commits an act that contravenes the ID2S Functioning Rules, the Operating Manual or an ID2S Notice; 3. When the participant loses its technical and operational ability to communicate with ID2S; 4. When a procedure provided for in Book 6 of the French Commercial Code or equivalent procedure of a legal system other than French law is open against the participant, where appropriate upon the ACPR notification (insolvency), 2 If your FMI also has the option to suspend rather than terminate membership, please specify for each answer whether and how it would differ for suspension. Please also note Question 4, which asks about