Author: Anna Kulik

CSDs activate their settlement penalties mechanisms

CSDs activate their settlement penalties mechanisms

1 February 2022 is the day of the entry into force of the Central Securities Depositories (CSD) Regulation (Regulation (EU) 909/2014) settlement penalties requirements. The requirements can be found on the website of the European Securities and Markets Authority. Most European CSDs are activating the mechanism on that day.

Many answers to the CSD participants’ questions on how the requirements will be implemented by CSDs can be found in the ECSDA Penalties Framework. Its version dated 5 October 2021 will be used for the set-up of the CSDs’ mechanisms as of 1 February 2022 and provides many answers to the frequently raised questions. More information about how the individual CSDs are applying settlement penalties requirements is provided by their website.

ECSDA uses the opportunity to remind the key milestones of the monthly reporting and collection/distribution process.

To ensure that the penalties processes are running smoothly, CSDs will be following the indicative timeline of the monthly process outlined below. Should the monthly reports be delayed for some reasons (e.g. a delay on the CSD side for a technical reason or a T2S delay), the CSD will only proceed with the subsequent steps of the monthly process after the participants receive the monthly reports. Section 12.2 of the Framework describes the handling of exceptions.

Source: ECSDA Penalties framework.

If an appeal based on a daily report is required, it should be addressed to the CSD as soon as practically possible, to be taken into account on time before the monthly payment request is sent to a participant. (For T2S CSDs, no change is possible after the 10th Penalties Business Day. The end of appeal for cross-CSD penalties is also be shorter than for intra-CSD; please refer to the communication of the individual CSD.) The amounts mentioned in the monthly report must be the ones collected and distributed. Penalties subject to an appeal submitted on time will be removed before the monthly report is sent, thus these will not appear on the penalties monthly reports. After the monthly process has been concluded, no further adjustments for the penalties received and distributed should be done by CSDs.

We encourage CSD participants to refer to the basics of the appeal mechanism, e.g. in the ECSDA Framework and the individual CSDs´ governing documents to limit queries and appeals to the extent possible. CSDs particularly ask the participants to verify the validity of reason for appeal before submitting it. This would avoid drawing upon the highly solicited CSD expert attention without a valid reason and ensure more efficient treatment of valid appeals.

ECSDA welcomes DCU from Moldova as new Member

ECSDA welcomes DCU from Moldova as new Member

ECSDA welcomes the Single Central Depository of Securities from Moldova as its new Member.
It is honoured to support the integration of the financial infrastructure of Moldova into the international capital markets ecosystem by sharing the best practices and standards of European Central Securities Depositories.

16/08/2021 – Press release of the National Bank of Moldova

Report on CSDR Review consultation

Report on CSDR Review consultation

On 1 July 2021, the European Commission issued its Report on the outcome of the consultation on the CSDR Review. This Report summarises the main areas to be made subject to the future EC proposal and speaks about the areas where actions are not needed.

Areas that the EC  may include in the CSDR REFIT:

• Settlement discipline: possible amendments to the settlement discipline framework, in particular the mandatory buy-in rules, to make it more proportionate – subject to an impact assessment. The EC recognises that clarifications to settlement penalties regime are long-awaited;

• Supervision;

• Domestic and cross-border provision of services;

• Banking-type ancillary services;

• Third country CSDs;

• Technological innovation.


The EC Proposal of CSDR REFIT is planned for Q4 2021/Q1 2022.

We invite you to consult the full Report here.

CSDs stand ready to contribute to the new Capital Markets Union action plan

CSDs stand ready to contribute to the new Capital Markets Union action plan

ECSDA welcomes the publication of the New Capital Markets Union Action plan. CSDs stand ready to contribute to the CMU discussions in the areas related to CSDs. We believe that the CMU should have a positive impact on future and existing legislation.

Over the last decades, the European CSDs have been contributing to the creation of a deeper single capital market in the EEA through cross-border connections and further harmonisation in the EU, EEA and beyond. The CMU proposal marks an important milestone in the right direction.

The announcement of the EU CMU Action Plan can be found here

ECSDA welcomes HLF report on CMU

ECSDA welcomes HLF report on CMU


Today, on 30 June 2020, ECSDA submitted its feedback to the High-Level Forum on Capital Markets Union. It welcomes the reports, and particularly appreciates the recommendations on the CSD Regulation.

Full text

ESMA requests the Commission to postpone Settlement Discipline to 1 Feb.2021

ESMA requests the Commission to postpone Settlement Discipline to 1 Feb.2021

On 4 February, the European Securities Market Authority, ESMA, has published the Final Report “CSDR RTS on Settlement Discipline – postponed entry into force”.

The report provides explanations for the proposal of delay of the implementation of the RTS on settlement discipline, initially foreseen on 13 September 2020.

ESMA acknowledges the need for relevant stakeholders to be provided with more time to prepare the implementation of the Settlement Discipline.

This is due in particular to:

  • New developments needed for the go live of the T2S penalty mechanism (22 November 2020)
  • Necessary IT system changes for the updating of ISO messages (22 November 2020)
  • Market testing
  • Adjustments to legal arrangements between the parties concerned (see Article 20 of RTS)
  • Developments related to the implementation of the mandatory buy-in process, foreseen by the CSDR settlement discipline

Considering all the above-mentioned elements, ESMA officially proposes (see Annex II of the report) the postponement of the date of entry into force of the RTS on settlement discipline until 1 February 2021.

Next steps:

  • This amendment to the RTS will be submitted to the European Commission for review and endorsement.
  • This will be followed by the non-objection period by the European Parliament and Council before the publication in the EU Official Journal and subsequently entry into force.
Standards on Corporate actions, Collateral management & Triparty

Standards on Corporate actions, Collateral management & Triparty

On 30 December 2019, Eurosystem has officially published the European standards for Securities and Collateral for Corporate actions, collateral management, triparty collateral and billing (for the purposes of the Eurosystem Collateral Management System).

Although elaborate in the context of preparation for the ECMS, the Standards are expected to be relevant beyond its needs and relevant for Europe beyond Euro-zone.

The Standards were approved by the Advisory Group on Market Infrastructures in July. They were elaborated with the contribution of ECSDA members.

Relevant documents can be found here: