Category: Public

ECSDA issues the CSDR Settlement Fail Penalties Framework

ECSDA issues the CSDR Settlement Fail Penalties Framework

On 20 November 2019, ECSDA issues the ECSDA CSDR Settlement Fail Penalties Framework.

The updated version of the document can be found here. It can be used by CSDs and their participants as a market practice on how CSDs should develop harmonised penalties mechanisms. The document was signed-off by the ECSDA Board.

Euroclear Sweden received the CSDR license

Euroclear Sweden received the CSDR license

On 14 November 2019, Euroclear Sweden received its license to operate under the European Union Central Securities Depository Regulation (CSDR) (909/2014/EU) from the Swedish Financial Supervisory Authority.

More information can be found here.

The list of CSDs authorised under the CSDR is provided on CSD Facts page of the website

KDD received the licence to operate under EU CSDR

KDD received the licence to operate under EU CSDR

On 26 September 2019, KDD Central Securities Clearing Corporation, Ljubljana, was granted the licence to continue providing services as a Central Securities Depository (CSD) from the Slovenian Securities Marketing Agency, pursuant to Article 17 of the Regulation (UE) 909/2014 on improving securities settlement in the European Union and on central securities depositories.

Please see the public announcement on the KDD website.

The list of CSDs authorised under the CSDR is provided on CSD Facts page of the website.

Iberclear is granted CSDR licence

Iberclear is granted CSDR licence

On Monday 23 September, IBERCLEAR has been granted the authorization to continue providing services as a Central Securities Depository (CSD), pursuant to Article 17 of the Regulation (UE) 909/2014 on improving securities settlement in the European Union and on central securities depositories.

The information related to the authorization is available on IBERCLEAR web page under “Regulation – CSDR” section.

Please see the full press release

The list of CSDs authorised under the CSDR is provided on CSD Facts page of the website.

Euroclear Finland received a licence to operate under EU CSDR

Euroclear Finland received a licence to operate under EU CSDR

On 21 August 2019, Euroclear Finland, ECSDA Member, received a licence to operate under the European regulation n° 909/2014 on settlement and central securities depositories (CSDR) from the Finnish Ministry of Finance.

More information can be found here.

The list of CSDs authorised under the CSDR is provided on CSD Facts page of the website.

ECSDA raises concerns on EDDI & suggests a solution to increase depth of issuance in EU

ECSDA raises concerns on EDDI & suggests a solution to increase depth of issuance in EU

On 9 July 2019, ECSDA responded to the ECB public consultation on EDDI (European Distribution for Debt Instruments) initiative.

ECSDA welcomes the ECB market consultation on its possible European Distribution of Debt Instruments (EDDI) initiative. ECSDA is committed to further foster the Capital Markets Union (CMU) initiatives and underlines its commitment to increased efficiency in the issuance of debt instruments. CSDs strongly support harmonisation, particularly when enabled by market-led initiatives. Although following discussions and workshops with the ECB and based on the content of the market consultation document, ECSDA believes that several concerns need to be addressed before any decision is made with regard to EDDI.  In particular, ECSDA would like to highlight the following points:

  1. Substantiation and quantification of market demand;
  2. Definition of scope and value proposition;
  3. Compatibility with the ongoing and planned EU CMU and post-trade policy agenda implementation;
  4. Need for a further investigation of the compatibility of different ECB roles;
  5. Compatibility of the need of a “neutral” party with competitive pre-issuance and post-trade markets;
  6. Compatibility of CMU objectives with potential weakening of the infrastructure efficiency for equity, local issuers and local investors;
  7. Compatibility of EDDI with T2S objectives and priorities; and
  8. Complex legal, contractual, and regulatory challenges.

Due to the above-mentioned concerns, ECSDA believes that in the shape it is currently designed, EDDI is not the appropriate solution for the problem indicated in the Eurosystem’s consultation. We recommend considering the above-mentioned concerns before any further decision on EDDI is proposed.

ECSDA believes that the path to further scalability for issuers and enhancing efficiency and depth of issuance across different EU markets is a coherent legislative and fiscal environment across EU. Efficient market practices established at national level may meet specific needs of relevant actors and support issuance of securities in the local market according to the local requirements and expectations. The tax framework applicable to debt issuance remains an element of significant divergence. Though governments use withholding tax applied to debt proceeds for their national budget, ECSDA recommends that the new European Commission identify a path in this area for further harmonisation (without imparting to this national area of responsibility, if there is no such political will). A similar reasoning is applicable to the securities law domain, where harmonisation would be a major catalyst to cross-jurisdictional issuance.  Without such harmonisation, actions undertaken by commercial or public actors will not bring substantial benefits.

We are persuaded that a coherent and harmonised legislative and fiscal framework would be central to the success of the Financial Market and CMU. ECSDA will remain a proactive contributor to the dialogue with policymakers.

ECSDA’s full response can be found here.

ECSDA updates the draft CSDR Settlement Discipline Penalties Framework

ECSDA updates the draft CSDR Settlement Discipline Penalties Framework

On 3 July 2019, ECSDA published the updated version of the draft ECSDA CSDR Settlement Discipline Penalties Framework. The updated version of document can be found here.

The main chapters in the ECSDA Draft CSDR Settlement Discipline Penalties Framework include:

  1. ECSDA CSDR SDR Penalties Framework key considerations
  2. Penalties lifecycle and business days calendar
  3. Penalties scope
  4. Identification of the party to be penalised
  5. Reference/static data required for penalty calculations
  6. Penalties currencies conversion needs
  7. Calculation methods of the cash penalties
  8. Changes to previously calculated penalties
  9. Cross-CSD settlement fails
  10. Collection & Redistribution of penalties (Payment)
  11. Reporting

Other supporting information is also provided in the framework.

Mathias Papenfuß, Brigitte Daurelle and Indars Aščuks re-elected ECSDA Chair and Vice-chairs

Mathias Papenfuß, Brigitte Daurelle and Indars Aščuks re-elected ECSDA Chair and Vice-chairs

Gathering in Bucharest during the European Union Romanian Presidency, for the Annual General Meeting on 16 May 2019, representatives of 40 CSDs elected the Board of Directors and the Executive Committee of the European Central Securities Depositories Association (ECSDA).

ECSDA Board Directors re-elected Mathias Papenfuß (Member of the Executive Board Clearstream Banking) as its Chairman, Brigitte Daurelle (CEO Euroclear Belgium, France and Nederland) and Indars Aščuks (CEO of Nasdaq CSD) as its Vice-Chairs and Georg Zinner (Managing Director of OeKB CSD) as Treasurer of the Association.

Commenting on his re-election, Mathias Papenfuß said:

“I am grateful for the continued trust ECSDA members have expressed by re-electing me as Chairman. I have been involved in ECSDA’s activities since the foundation of the association in the late 1990s and I am convinced that our association is more relevant than ever to help CSDs cope with the accelerating pace of market and technological changes and regulatory pressure.

During the previous three years, we have witnessed an unprecedented level of harmonisation of CSD activities, enhancement of their risk management and operational resilience, based on the pan-European legislation. On this basis, I expect that, during the next three years, we will see further enhancements and modernisation of CSD activities, stronger competition and more work on the efficiency of the European financial market infrastructures contributing to a deeper Capital Market Union.”

At the same meeting, ECSDA Board has established the list of Executive Committee members, as follows:
– Francisco Béjar Nuñez, Iberclear
– Helena Čacká, CSD Prague
– Rui de Matos, Interbolsa
– Mauro Dognini, Monte Titoli
– Dora Matošić, SKDD
– Niels Olsen, VP Securities
– Nikolaos Porfyris, ATHEX CSD
– Boris Tomaž Šnuderl, KDD
– Andrea Tranquillini, ID2S

More information:

Printable version of the press release (PDF)
Pictures of Mathias Papenfuß and of the other ECSDA Executive Officers
List of ECSDA Board members
List of Executive Committee members

ECSDA Board Meeting and Ordinary General Meeting in Bucharest, 16 May 2019