Public – ECSDA

ECSDA updates the Settlement CSDR Penalties Framework

Today, 11 September 2024, ECSDA issues the update of the ECSDA CSDR Penalties Framework.

This version of the document reflects the implementation of the amendment of Article 19 CSDR SDR concerning the collection and redistribution of penalties. As per such amendment, the process applied to non-cleared transactions will now also be applied to cleared ones. ECSDA is pleased to have been able to implement a legislative change allowing for a single regime applicable to both cleared and non-cleared transactions as a result of the thorough discussions with the authorities and CCPs.

The changes in the document are highlighted in light grey, and are mostly covering the removal of specific treatment of cleared transactions.

Please read the full document.

ECSDA responds to the ESMA consultation on CSDR SDR scope

On 9 September 2024, ECSDA responds to the ESMA consultation on CSDR SDR scope and provides its view on what may be considered in the scope of cash penalties application for:

a. Underlying causes of settlement fails that are considered as not attributable to the participants in the transactions
b. Circumstances in which operations are not considered as trading
ECSDA supports the ESMA proposal with some exceptions and highlights the impact that any change introduced might have on market actors, and also warns about the timeline for implementation of such changes.

Read the full document.

ECSDA Responds to the ESMA consultation on Review & Evaluation

On 9 September 2024, ECSDA responded to the ESMA consultation aimed at amending Regulation EU 2017/392 and Regulation EU 2017/394, following the amendments to Article 22 of the CSDR, which were introduced with the CSDR Refit. These amendments concern the periodic review and evaluation process to which CSDs are subjected by their competent authorities (CAs).

The response supports the development of an efficient and globally competitive regulatory framework, with suggestions to ensure consistent and proportionate information flows to competent authorities in the ex-post supervision of CSDs.

Read the full document.

Assocations’ explanatory note on the impact of the US move to T+1 on corporate actions

On 3 September 2024, the European Central Securities Depositories Association (ECSDA) jointly with the Association for Financial Markets in Europe (AFME) and the Federation of European Stock Exchanges (FESE), published a joint explanatory note on the impact of the US move to T+1 on corporate actions processing for multi-listed and multi-traded securities. The key dates for corporate actions of securities issued in North America changed following the settlement cycle reduction to T+1 in May this year.

The Associations identified four scenarios of possible situations faced by European actors in the aftermath of the implementation of T+1 in the other regions. The analysis performed covers all actors within the chain from the Issuer through to the End Investor.

Read the full document.

Register for the ECSDA Conference 2024 in Brussels!

We are excited to announce that the registration for the ECSDA Conference 2024 is now open!

This year’s conference will take place on 19 November at the Auditorium of the National Bank of Belgium (NBB) in Brussels, rue Montagne aux Herbes Potagères 10, 1000 Brussels.

The ECSDA Annual Conference will capitalise upon the achievements of the WFC Meeting organised by ECSDA and CSD Prague in May 2023. It will bring together the CSD ecosystem thought leaders and visionaries, participants and most advanced technological suppliers helping the community in building the European and global financial markets. We will concert the views with the leading European policy-makers and regulators and advise them on the post-trade priorities for building a true single European capital market.
The topics of settlement efficiency and shortening of the settlement cycle, new CMU priorities, FMI interoperability on settlement of Digital Assets and others will be under the attention of the Conference speakers and participants.

For more details and to secure your spot, please visit the conference website. We look forward to welcoming you to Brussels in November!

ECSDA’s call for action on Europe’s Capital Markets Competitiveness

Today, 22 July 2024, ECSDA released its Call for action on Europe’s Capital Markets Competitiveness.

As the EU begins a new political cycle, ECSDA reaffirms its continued support for the further development and revitalisation of the Capital Markets Union (CMU). As Financial Market Infrastructures offering key services to issuers, investors and securities markets, Central Securities Depositories (CSDs) play an integral role in creating a more integrated, efficient and competitive EU capital market.

A number of key reports (Eurogroup, Letta, Draghi, Noyer and ESMA) entail important elements to lay the foundation for the next EU legislative agenda. They also include key recommendations on increasing the attractiveness of the European capital markets for issuers and investors and deepening the liquidity in the region.

ECSDA supports some of the recommendations related to post-trading and agrees that post-trade activities could be more efficient but questions others, especially on solutions for integrating the post-trade. This topic is not new, but a renewed reflection of its relevance may be warranted.

Below, ECSDA identifies some measures that could further strengthen Europe’s capital markets integration and growth from a post-trade perspective. Key elements that continue to act as material barriers to market integration and fragmentation include for instance securities law, market specificities and tax procedures. The EU should therefore rather improve the current realities to empower private sector CSDs to drive natural integration and consolidation via fair cross-border competition. In our view, the European Capital Market deeply benefits from its CSD competitiveness.

In this document, ECSDA provides its views and recommendations on:

the role of CSDs in supporting market integration;
the root causes of post-trade fragmentation;
the impact of forcing further consolidation without addressing the root causes of fragmentation;
the way forward to achieve further integration.

Please read the full document.

The ECSDA Board elects Chair of the Corporate Event & Vice-Chair of the Policy WG

On 4 July, the ECSDA Board elected Thomas Metier, Head of Nordic Business Operations at Euronext Securities, as Chair of the Corporate Event Working Group and Mireille Galeazzi, Director of Public Affairs at Euroclear as Vice-Chair of the Policy Working Group.

The Corporate Events Working Group aims to address the challenges resulting from unharmonised regulation and leading to different local practices, by developing and implementing standardized processes and protocols for CSD corporate event management. Under Mr Metier’s leadership, the working group will foster collaboration among key stakeholders and is commited to work toward a harmonized European capital market that is efficient, resilient, and globally competitive.

Mrs Galeazzi looks forward to act as Vice Chair of the Policy Working Group and engage in the new European regulatory and political agenda as per the recent European elections.

The Capital Markets Union(CMU), is expected to be an important component of the upcoming agenda with expectations on the post-trade environment including, CSDs to further foster deeper and efficient financial markets.
Together with the group’s Chair, she will strive to bring forward the European CSD’s contribution to these key topics.

Welcome to both of them!

Joint Associations’ letter – European Cybersecutity Certification Scheme for Cloud

The European Association of CCP Clearing Houses (EACH), the European Central Securities Depositories Association (ECSDA), and the Federation of European Securities Exchanges (FESE) (the co-signatories) welcome the progress made on the European Cybersecurity Certification Scheme for Cloud Services (EUCS) and ask for a swift adoption of the scheme. The associations support the direction of the latest EUCS proposal that maintains three assurance levels as foreseen by the Cybersecurity Act and reflects discussions across sectors and inputs from industry so far.

Read the full letter.