New European rules to regulate settlement and Central Securities Depositories (CSDR)
On 18 December 2013, the European Parliament and the Council reached an important agreement on a Regulation for more stability, efficiency and safety of settlement and CSDs.
On 26 February 2014, the Permanent Representatives Committee, on behalf of the Council of the European Union, confirmed the agreement with the Parliament.
On 23 July 2014, the CSDR was adopted by Council of the European Union.
- Statement by Commissioner Barnier, 15 April 2014
- Regulation (EU) No 909/2014 on securities settlement and on Central Securities Depositories
This is a major development for the European agenda to enhance the safety and soundness of the financial system. Together with the Regulation on OTC derivatives, central counterparties and trade repositories (“EMIR”) that entered into force on 16 August 2012 and the Markets in Financial Instruments Directive (“MiFID”), it will form a framework in which systemically important securities infrastructures (trading venues, central counterparties, trade repositories and central securities depositories) are subject to common rules on a European level.
The new Regulation will ensure that settlement is carried out in a safer and more efficient manner in Europe. It entered into force on 17 September 2014.
On 7 March 2012, the Commission adopted a proposal for a Regulation on improving securities settlement in the European Union and on central securities depositories (CSDs) and amending Directive 98/26/EC. The Regulation introduces an obligation of dematerialisation for most securities, harmonised settlement periods for most transactions in such securities, settlement discipline measures and common rules for central securities depositories (CSDs).