National Depository of Ukraine announces the severance of correspondent relations with the Central Depository of the Republic of Belarus on February 28, 2022. The complicity of Belarus in the military invasion of the Russian Federation towards Ukraine makes impossible cooperation of our countries. We condemn the support of invaders and murderers who kill the Ukrainian people.
With the willingness to peace restoration and with Ukraine in our hearts,
On 24 February 2022, the National Depository of Ukraine informed ECSDA that « due to the acts of military aggression by the Russian Federation against Ukraine », the application of the martial law in Ukraine from 24.02.2022 and the relevant decision of the National Commission on Securities and Stock Market, the CSD operating hours on that day have been reduced to 11:00 am local time. From that moment and until a different decision is taken, the Ukrainian National Securities and Stock Market Commission temporarily suspended the placement, circulation, and redemption of all securities, as well as operations in the depository accounting system and clearing systems of persons conducting clearing activities. This is with the exception of the operations required by the National Bank for monetary policy and the Ministry of Finance public debt service.
The full list of restrictions on the stock market is available here (only the Ukrainian version is available)
NDU confirmed that their contacts remain unchanged.
Today, 10 February, The Central Depository and Clearing Company, Inc. (SKDD) informs capital market participants and the interested public that on 10 February 2022, the Croatian Financial Services Supervisory Agency (HANFA) announced on its website that HANFA had issued a Decision granting approval to SKDD as a central securities depository under Regulation (EU) no. 909/2014 of the European Parliament and of the Council of 23 July 2014 on improving the settlement of securities in the European Union and on central securities depositories and amending Directives 98/26 / EC and 2014/65 / EU and Regulation (EU) no. 236/2012 (CSDR).
SKDD will start providing services in accordance with the CSDR on 14 February 2022, when the amended SKDD acts come into force: Rules and Instructions as well as Fee Schedule. The amended acts are also complied with the provisions of the Regulatory Technical Standards (RTS) on the settlement discipline regime, except for the rules on buy-in, the application of which has been postponed.
1 February 2022 is the day of the entry into force of the Central Securities Depositories (CSD) Regulation (Regulation (EU) 909/2014) settlement penalties requirements. The requirements can be found on the website of the European Securities and Markets Authority. Most European CSDs are activating the mechanism on that day.
Many answers to the CSD participants’ questions on how the requirements will be implemented by CSDs can be found in the ECSDA Penalties Framework. Its version dated 5 October 2021 will be used for the set-up of the CSDs’ mechanisms as of 1 February 2022 and provides many answers to the frequently raised questions. More information about how the individual CSDs are applying settlement penalties requirements is provided by their website.
ECSDA uses the opportunity to remind the key milestones of the monthly reporting and collection/distribution process.
To ensure that the penalties processes are running smoothly, CSDs will be following the indicative timeline of the monthly process outlined below. Should the monthly reports be delayed for some reasons (e.g. a delay on the CSD side for a technical reason or a T2S delay), the CSD will only proceed with the subsequent steps of the monthly process after the participants receive the monthly reports. Section 12.2 of the Framework describes the handling of exceptions.
Source: ECSDA Penalties framework.
If an appeal based on a daily report is required, it should be addressed to the CSD as soon as practically possible, to be taken into account on time before the monthly payment request is sent to a participant. (For T2S CSDs, no change is possible after the 10th Penalties Business Day. The end of appeal for cross-CSD penalties is also be shorter than for intra-CSD; please refer to the communication of the individual CSD.) The amounts mentioned in the monthly report must be the ones collected and distributed. Penalties subject to an appeal submitted on time will be removed before the monthly report is sent, thus these will not appear on the penalties monthly reports. After the monthly process has been concluded, no further adjustments for the penalties received and distributed should be done by CSDs.
We encourage CSD participants to refer to the basics of the appeal mechanism, e.g. in the ECSDA Framework and the individual CSDs´ governing documents to limit queries and appeals to the extent possible. CSDs particularly ask the participants to verify the validity of reason for appeal before submitting it. This would avoid drawing upon the highly solicited CSD expert attention without a valid reason and ensure more efficient treatment of valid appeals.
Euronext Securities Oslo implements CSDR in Norway
On 28 January 2022, Euronext Securities Oslo (ES-OSL) obtained approval from the Norwegian FSA (NFSA) to operate as a Central Securities Depository in accordance with EUs Central Securities Depositories Regulation, (CSDR).
CSDR settlement discipline will then be introduced from 1 March.
On 5 October 2021, the European Central Securities Depositories Association (ECSDA) publishes the updated version of the ECSDA CSDR Settlement Fails Penalties Framework.
The Framework is the effort of compliance with the Regulation and harmonisation of settlement penalties mechanisms across CSDs subject to CSDR or regulation alike and constitutes a market practice focusing on the settlement fails related requirements in the Central Securities Depositories (CSDs) Regulation and its Regulatory Technical Standards on Settlement Discipline, aiming at improving “the safety and efficiency of securities settlement”.
The current version of the document provides the changes in comparison with the previous one highlighted in grey and the assumptions pending ESMA and EC feedback in yellow.
ECSDA also makes public operational details of CSDs Settlement Discipline implementation via a questionnaire, regularly updated.
