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Central Securities Depositories (CSDs)

CSDs are systemically important infrastructures in modern securities markets. They perform crucial services that allow at a minimum the registration, safekeeping, settlement of securities in exchange for cash and efficient processing of securities transactions in financial markets.

While securities markets traditionally relied on the physical exchange of paper, CSDs now assume a critical role in guaranteeing a safe and efficient transfer of securities that exist to a large extent only in book entry form. CSDs have now become a central point of reference for an entire market. Furthermore, being located at the end of the post-trading process, CSDs witness all the settlement fails occurring during the settlement period. They are, therefore, a key element in ensuring settlement discipline.

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 Parliamentpdf.

On 15 April 2014, the Regulation on settlement and Central Securities Depositories (known as “CSDR”) was adopted by the European Parliament.

On 23 July 2014, the CSDR was adopted by Council of the European Union.

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.

Proposal by the Commission – 07.03.2012

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.


The Commission invites any interested parties to submit their comments in a public consultation, held from 13.01.2011 to 01.03.2011