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).
Delegated and implementing acts
Adoption of a delegated act as well as regulatory and implementing technical standards for Regulation (EU) No 909/2014 on improving securities settlement in the EU and on central securities depositories – 11.11.2016
On 11 November 2016, the European Commission adopted a delegated act, three regulatory technical standards and two implementing technical standards to complement the obligations defined under the Regulation on improving securities settlement in the EU and on central securities depositories. The five regulatory and implementing technical standards were developed by the European Supervisory Authorities and have been endorsed by the European Commission without modification. The Commission developed the delegated act based on European Securities and Market Authority’s technical advice.
- Press release
- Commission Delegated act:
- Regulatory Technical Standards:
- Regulatory technical standards on authorisation, supervisory and operational requirements for central securities depositories (Annex )
- Regulatory technical standards specifying the content of the reporting on internalised settlements
- Regulatory technical standards on prudential requirements for central securities depositories and designated credit institutions offering banking-type ancillary services (Annex )
- Implementing Technical Standards
- Implementing technical standards on standard forms, templates and procedures for authorisation, review and evaluation of central securities depositories (Annex )
- Implementing technical standards with regard to the templates and procedures for the reporting and transmission of information on internalised settlements (Annex )