1. ESMA shall, in cooperation with EBA and the competent authorities and the relevant authorities, submit reports to the Commission providing assessments of trends, potential risks and vulnerabilities, and, where necessary, recommendations of preventative or remedial action in the markets for services covered by this Regulation. Those reports shall include an assessment of the following:
(a) settlement efficiency for domestic and cross-border operations for each Member State, taking into account at least the following:
(i) the number and volume of settlement fails and their evolution;
(ii) impact of cash penalties on settlement fails across instruments;
(iii) the duration and main drivers of settlement fails;
(iv) the categories of financial instruments and markets where the highest settlement fail rates are observed;
(v) an international comparison of settlement fail rates;
(vi) the amount of the cash penalties referred to in Article 7;
(vii) where applicable, the number and volumes o
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