Category: Public

ECSDA details further the implementation of fails penalties

ECSDA details further the implementation of fails penalties

On 22 December 2020, ECSDA published the updated version of the ECSDA CSDR Settlement Fails Penalties Framework.

Cash penalties are required by the EU legislators to be imposed by CSDs and aim at increasing settlement efficiency rates. The requirements are outlined in the CSD Regulation (EU 909/2014) and its underlying Standards.

The document can be used by Central Securities Depositories (CSDs) and their participants as a market practice on how CSDs should develop harmonised settlement fail penalties mechanisms. The document is meant to be evolving, along with the evolution of the views of the competent authorities on the matters under their review. It can be used by the CSDs and their participants to start their IT developments to comply with CSDR Settlement Fail penalties-related requirements.

This version of the document provides the changes in comparison with the previous version in grey and the pending assumptions in yellow.

The ECSDA Framework can be found here.

Earlier, ECSDA also made public the responses to the practical questions on CSDR Cash penalties implementation.

You will see that this document will be updated regularly while some answers to the questions will continue to arrive and CSDs will advance further in their implementation. It represents a centralised view on the CSDs practices. (The advancements of CSDs’ views may be made available even quicker to their direct participants in CSD’s own communication.)

ECSDA response to practical questions of CSD participants on CSDR penalties implementation – updated version 10/11/2020

 

Keler is granted the CSDR licence

Keler is granted the CSDR licence

On 16 December 2020, KELER, the central depository of Hungary, was granted an authorisation under the Central Securities Depositories Regulation (CSDR) and can now offer its clients its services supporting an efficient and secure securities market as a central securities depository operating under unified European regulations.

Please see the full release.

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

Euroclear UK & Ireland receives the CSDR licence

Euroclear UK & Ireland receives the CSDR licence

On 4 December 2020, Euroclear UK & Ireland  announced it has obtained its Central Securities Depositories Regulation (CSDR) licence from the Bank of England. Euroclear UK & Ireland is the seventh and final CSD entity in the Euroclear Group to receive its licence.

Please see the release.

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

 

 

EC issues consultation on CSDR review and Settlement Discipline

EC issues consultation on CSDR review and Settlement Discipline

On Tuesday 8 December, the European Commission issued the public consultation on the CSDR review and Settlement Discipline Regulation.

The consultation covers the following topics:

  1. CSDs authorisation & review and evaluation process (Art. 16 & 54 CSDR)
    – Including Question 2 on the insertion of an end date for the grandfathering clause of CSDR
  2. Cross-border provision of services in the EU (Art. 23(3) to 23(7))
  3. Internalised settlement (Art. 9)
  4. CSDR and technological innovation
  5. Authorisation to provide banking ancillary services (Art. 54)
  6. Scope (Art. 2(1)(8))
  7. Settlement Discipline
  8. Framework for third country CSDs (Art. 25)
  9. Other areas to be potentially considered in the CSDR review (one open question)

The consultation runs until 2 February 2021.

Please find the full document 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