Friday June 9 2017

News Source: Global Exchanges

Focus: Other

Type: General




The European Securities and Markets Authority (ESMA) has updated on 2nd June 2017, its Q&As on practical questions regarding the implementation of Central Securities Depositories Regulation (CSDR).

The below has been updated:

CSD Question 9

Provision of services in other Member States

Article 23(3) of CSDR relates to the provision of notary and central maintenance services in another Member State. Its paragraph (e) specifically provides that “where relevant, [a CSD shall communicate to the NCA of the home Member State] an assessment of the measures the CSD intends to take to allow its users to comply with the national law referred to in Article 49(1)” i.e. the corporate law of the Member State under which the securities are constituted.

  • Does this requirement apply to all types of securities (shares, bonds, etc.)?
  • What type of assessment should the CSD provide to the home Member State NCA?

CSD Answer 9

Yes, Article 23(3)(e) of CSDR applies to all types of securities (as defined under Article 2(8) of CSDR).

National laws referred to in Article 49(1) of CSDR govern the relationship between issuers and holders of such securities or any third party, such as ownership rights, voting rights, dividends and corporate action, which for the sake of clarity, is not the national law of the home NCA that will receive this communication.

Therefore, to assess that these measures allow its users to comply with the applicable securities law, the CSD should not only communicate the measures it intends to take and the procedure it intends to follow, but should also provide actual evidence that the proposed measures ensure compliance. To that end, independent legal opinions may be requested in order to certify that the rules and procedures set out by the CSD allow their users to comply with each applicable national law.

Please click on the above link for more information.