INTERNATIONAL: Clearstream Publish Briefing Paper on Central Securities Depositories Regulation

Tuesday January 10 2017

On 9th January 2017, Clearstream published a briefing paper on the customer impacts of the Central Securities Depositories Regulation (CSDR). The Central Securities Depositories Regulation (CSDR) is one of the key regulations adopted in the aftermath of the financial crisis. Its objectives are:

• To increase the safety and efficiency of securities settlement and the settlement infrastructures in the EU;
• To harmonise the different rules applicable to Central Securities Depositories (CSDs) in Europe; and
• To establish an enhanced level playing field amongst these CSDs.

The regulation applies to all CSDs in the EU, along with those of Iceland, Liechtenstein and Norway (as and when incorporated into the European Economic Treaty). Switzerland is also to be subject to certain CSDR provisions via bilateral agreement.

The CSDR is significant to all financial market participants in Europe – and globally – as it introduces measures that not only impact European CSDs, but also the wider financial market infrastructures and global trading parties dealing in securities that settle in an EU CSD or at either of the ICSDs.

Trading parties, central counterparties (CCPs) and trading venues will also be impacted and will have to directly comply with some of the measures, in particular with the introduction of mandatory buy-ins and penalties for settlement failures.

Click on the link above for further details.