Central Securities Depositories Regulation—essentials

The following Financial Services practice note provides comprehensive and up to date legal information covering:

  • Central Securities Depositories Regulation—essentials
  • Development of the EU CSDR
  • UK implementation of the EU CSDR
  • Brexit—onshoring of the EU CSDR
  • Scope of the CSDR
  • Securities settlement
  • Book-entry form
  • Settlement periods
  • Settlement discipline
  • Internalised settlement reporting
  • More...

Central Securities Depositories Regulation—essentials

This Practice Note provides information on the Central Securities Depositories Regulation (EU) 909/2014 (OJ L 257/1) (EU CSDR) and Retained Regulation (EU) 909/2014 (UK CSDR). In each section of this Practice Note, links are given to the relevant provisions of the EU CSDR and/or the UK CSDR, as applicable, and significant divergence between the EU CSDR and the UK CSDR is explained.

Development of the EU CSDR

Central securities depositories (CSDs) hold securities in a dematerialised form and provide a clearing and settlement service for market participants. Given that CSDs are of systemic importance for the functioning of securities markets, in the aftermath of the financial crisis the European Commission introduced a legislative proposal in March 2012 for a Regulation to improve securities settlement and regulate CSDs. Following on from this proposal, on 28 August 2014, the EU CSDR was published in the Official Journal of the EU, and it entered into force on 17 September 2014. The aim of the CSDR is to ensure that financial transactions in securities are settled and cleared in a safe and timely fashion.

The Commission noted that the number of settlement fails is higher for cross-border transactions and, therefore, considered that harmonisation of certain processes throughout the EU would help improve this situation and reduce the number of settlement fails. The Commission identified

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