Thursday April 17 2014
News Source: Global Exchanges
Focus: MiFID (Global Exchanges)
Type: General
Country: European Union
Link: http://europa.eu/rapid/press-release_MEMO-14-312_en.htm?locale=en
The European Parliament has adopted in plenary session a Regulation on securities settlement and central securities depositaries.
The main objective of the Central Securities Depositaries Regulation is to increase the safety and efficiency of securities settlement and settlement infrastructure (CSDs) in the EU by providing, among others, for the following:
• Shorter settlement periods;
• Deterrent Settlement discipline measures (mandatory cash penalties and ‘buy-ins’ for settlement fails);
• Strict prudential and conduct of business rules for CSDs;
• Strict access rights to CSD services;
• Increased prudential and supervisory requirements for CSDs and other institutions providing banking services ancillary to securities settlement.
Following the vote in plenary, the adoption of the CSD Regulation must be formally approved by the council. The publication of the new rules in the Official Journal of the European Union is thought to be for the third quarter of 2014.
Click on the above link for further details.