Category: Public

ECSDA response to the EU Consultation on Crypto-Assets 

ECSDA response to the EU Consultation on Crypto-Assets 

Today, 19 March 2020, the European Central Securities Depositories Association (ECSDA) welcomes the initiative of the European Commission (EC) and wishes to share the views of Central Securities Depositories (CSDs) on this consultation. CSDs share many of the views of the European Commission expressed in the consultation. Our consultation response focusses mainly on tokens other than stablecoins.

In addition to the answers to the consultation questions, ECSDA’s main considerations regarding the consultation are the following:

1. CSDs innovate, including using DLT. ECSDA members have been constantly working on increasing efficiency and finding innovative solutions, while complying with the EU legislation and in constant dialogue with the market stakeholders. Many CSDs are working on innovation projects, including DLT-based solutions, and some are already using DLT as part of their core system or ancillary services in production. CSDs aim at supporting any business models and mature technology that may contribute to an efficient and safe market infrastructure for any type of assets.

2. Current EU legislation (like CSDR, SFD and FCD) is technology-neutral and fit for purpose for investment tokens. It was built for achieving the goal of investor protection and mitigation of systemic risks, not to support a specific technology. It provides for key safeguards enabling stakeholders, such as issuers, intermediaries and other service providers, to operate in a clear environment with limited risk. These safeguards are relevant for servicing any type of assets, disregarding the underlying technology used. Hence, we share the perspective expressed in the consultation that any future legislation should also be technology-neutral.

3. Incorporating crypto-assets not falling under the current regulation into the existing financial regulatory framework, where appropriate, will inject trust and legal certainty, enable their quick adoption, address financial stability, consumer protection and market integrity needs. In the cases where this would not be appropriate (e.g. stablecoins) and, hence, where there may be a bespoke regime (involving a different regulatory framework and/or approach of the authorities), stakeholders, in particular issuers and investors, will gain by being serviced by a trusted entity. It might be considered whether the Principles for Financial Market Infrastructures would provide the right basis for its regulation.

Read the full response

ECSDA Response to the EU Consultation on Digital Operational Resilience

ECSDA Response to the EU Consultation on Digital Operational Resilience

On Monday, 16 March 2020, ECSDA responded to the European Commission on Digital Operational Resilience.

ECSDA strongly supports the European Commission (EC) in pursuing the work on operational resilience and extending the resilience expectations to all relevant financial market stakeholders.

We believe that this has a potential to increase the overall level of financial stability of the European financial services network and its investor protection.

The ability of a Central Securities Depository (CSD) to build and maintain its operational integrity and the full range of operational capabilities, is a key determining factor to conduct CSD business in due care of financial stability. Hence, CSDs find it important to contribute to the construction of the future European operational resilience framework.

Our views can be summarised around the following main considerations, the importance of which we would like to ask the EC to consider:

  • Convergence of National Competent Authorities approaches
  • Comprehensiveness of the framework and interdependency of actors
  • Risk-based approach

Read the full response.

ECSDA Industry Dialogue on CSDR Settlement Discipline

ECSDA Industry Dialogue on CSDR Settlement Discipline

On Thursday 13 February, ECSDA has hosted on Clearstream and Deutsche Börse premises, an industry dialogue focused on the ECSDA CSDR Penalties Framework and on settlement discipline related issues. It was a fruitful discussion, involving participants from other industry associations and representatives other FMIs and intermediaries.

During the day, ECSDA presented the main features of the implementation of Settlement Discipline by CSDs, and also a Q&A session on open items and next steps.

The questions and answers have now been integrated in the slides presented during the event on 13 February (please find the link below). ECSDA will integrate the answers to the questions received from participants in the next version of the ECSDA Penalties Framework, when possible.

We will keep you posted on the next steps, and inform about the publication of the next version of the ECSDA Penalties FW document as soon as possible.

SWIFT and EurexSTS also presented their ongoing developments related to CSDR Settlement Discipline.

Please find all presentations here below:

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.
Clearstream Banking AG (Germany) receives the licence under CSDR

Clearstream Banking AG (Germany) receives the licence under CSDR

On 21 January 2020, BaFin granted Clearstream Banking AG, as German Central Securities Depository, the licence according to Article 16 Central Securities Depository Regulation (Regulation (EU) No 909/2014) – CSDR. The licence authorises the company to provide core services and non-banking-type ancillary services under the CSDR.

Read the full announcement.

Read the official Clearstream/Deutsche Börse Group Media release.

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

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: