On 12 November 2018, ESMA has updated his Questions and Answers (Q&As) with regard to the implementation of the Central Securities Depository Regulation (CSDR).
The new entries relate to the provision of services in another Member State and to Settlement Discipline (cash penalties).
See the complete updated ESMA CSDR Q&As following this link.
On 27 October, Danmarks Nationalbank has connected its real-time gross settlement and collateral management system to the ECB T2S platform. The same week-end, VP Securities, the Danish Central Securities Depository and ECSDA member, has facilitated the first settlement in Danish Krone. DKK is the first, other than euro, currency available for settlement on T2S.
Congratulations to our Danish colleagues for having contributed to making settlement in DKK on T2S possible!
Please read the full VP Securities press release
On 27 September 2018, ESMA has updated his Q&As regarding the implementation of CSDR.
It clarifies practical issues on the implementation of the new CSDR regime, giving more information about settlement discipline, book entry form requirements and organisational requirements.
See the complete updated ESMA CSDR Q&As following this link.
On 13 September 2019, the Final Regulatory Technical Standards (RTS) on Settlement Discipline have been published in the Official Journal of the European Union. The standards are mandated by the CSD Regulation and constitute part of a binding package providing the regulatory framework for all Central Securities Depositories of the European Economic Area.
The standards have been released by the European Commission on May 25 and published following the absence of any objection from the Council and the Parliament.
They will enter in force on 14 September 2020, after a phase-in period of 24 months.
Please see the link to the full Regulatory Technical Standards as published in the Journal.
Updated 19 September 2018
We are truly happy to see that the list of European Central Securities Depositories Association (ECSDA) members that have been authorised under the new pan-European Union regulation is increasing. The CSDs that have received the authorisation to function under the CSD regulation are:
1. Austian CSD – OeKB CSD. Press release.
2. Danish CSD – VP Securities. Press release.
3. Latvian CSD covering Baltic states – Nasdaq CSD. Press release.
4. Portugese CSD – Interbolsa. Press release.
5. Bulgarian CSD – CDAD. Press release
The recent proposal by the Commission for a Directive regarding the digital tools and processes in company law gives rise to the importance of taking into account the already existing identification for financial institutions.
European CSDs call upon policymakers to consider reusing the identification for the purposes of the proposed Directive and to use it as an opportunity to streamline the process of
(a) obtaining, maintaining and collecting the identifier for financial institutions and issuance as well as
(b) facilitating the acceptance of securities in an EU CSD.
9 July 2018
Today, ECSDA makes available the draft version of its future ECSDA Settlement Fail Penalties Framework (the Framework). The document aims at creating a harmonised and coherent set of rules and considerations for creation and operation of the Settlement Discipline Cash Penalties mechanisms by all European CSDs subject to the CSD Regulation (Regulation (EU) 909/2014) or equivalent provisions. It intends to provide a clear, safe and efficient Framework for settlement penalties mechanisms of the CSDs that have joined and that have not yet joined T2S platform.
The draft version of the Framework is based on numerous assumptions which need to be confirmed by the authorities and other relevant stakeholders. It is intended to evolve pursuant to clarification of assumptions, dialogue with relevant stakeholders and further ECSDA work.
Preliminary or partial views will be appreciated as soon as possible.
The open consultation on the early draft framework is running until 17 August at the latest.
Please send us your views, comments and proposals to info@ecsda.eu.
We thank you in advance for your attention and possible contribution to improving the ECSDA Settlement Fail Penalties Framework further.
Please read the full document.
European CSDs support a coherent use of the same standard globally. At this stage, we see that earlier standards are more in use for securities communication across the globe. However, we note that several pan-European infrastructure projects and regulatory initiatives would expand further the use of ISO20022 in the upcoming years.
At the same time, given (i) the significant cost of migration for infrastructures and market participants across the globe and (ii) the relatively limited value-added of ISO 20022 versus the current 15022 for securities, we would advise not to urge a full global migration of all flows.
Should a ‘forced’ migration occur, the co-existence shall be limited.
