Tag: regulation

CMU HLF published its final report

CMU HLF published its final report

On 10 June, the CMU HLF published its final report

The report consists in 17 recommendations put forward with the intent of addressing relevant issues related to corporate access to finance, pan-European market architecture, retail investment and cross-border investment.

Recommendation on CSDR
The European Commission is invited to conduct a targeted review of Central Securities Depositories Regulation (CSDR) to strengthen the CSD passport and facilitate the servicing of domestic issuance in non-national currencies. This should be accompanied by measures to strengthen the supervisory convergence among National Competent Authorities (NCAs). These measures, taken jointly, should enhance the cross-border provision of settlement services in the EU.

Justification
A targeted review could usefully tackle the following issues:

  1. CSD passporting and links
    While the objective of CSDR is to create a “common CSD market” free of regulatory barriers and to offer CSDs a European passport, divergent application by NCAs of the rules according to which (I)CSDs should meet CSD links framework requirements and provide services in another Member State creates procedural and regulatory hurdles, fragmenting the post-trade landscape along national lines.
  2. Cross-border payments and access to Central Bank and commercial liquidity
    The CSDR has unintendedly limited access to global liquidity pools for CSDs without a “limited purpose banking license”. Consequently, these CSDs cannot service domestic issuance in other currencies, including sovereign debt. The CSDR foresees the possibility for CSDs without a banking licence to appoint a “designated credit institution”. However, such liquidity providers have not emerged yet. National Central Banks (NCBs) should facilitate non-domestic (I)CSDs to process settlement in Central Bank Money in other currencies (including those frequently used for issuance and settlement: GBP, CHF, USD), after taking due account of the implications of such access. Alternatively, the CSDR restrictions that prohibit CSDs holding a banking license to provide such services to other CSDs could be amended.
  3. Supervision of CSDs
    Divergence in national supervisory approaches is still an important fragmentation factor in the provision of settlement services that generates costs and limits the cross-border offer. Given that securities laws are not harmonised across EU 27, NCAs still have a role to play. Therefore, ESMA’s work within the current scope of its mandate in terms of convergence should be continued and strengthened. The aim should be to ensure convergence in supervisory approaches across the Member States to reduce administrative burdens on CSDs and to generate the value added for the EU financial markets in terms of the CSDR objectives.

Please read the full report

ECSDA views on the Future of European Post-Trade

ECSDA views on the Future of European Post-Trade

Recently, the European Commission has launched a consultation on the Future of European Post-Trade, based on the conclusions of the European Post Trade Forum (EPTF). European CSDs thank the European Commission for the constructive and effective discussions at the EPTF, in which they have been deeply involved. In addition to the insight provided in the report resulting from the forum, Central Securities Depositories (CSDs) note several trends in their immediate ecosystem which are important to post-trade more widely.

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Better regulation in post trade

Better regulation in post trade

29 Jan 2016 – Responding to a call for evidence on the EU regulatory framework for financial services, ECSDA has identified several areas where the quality of law-making can be improved in relation to post trade services and the activities of central securities depositories in particular.

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Account segregation at CSDs

Account segregation at CSDs

13 Oct 2015 – Based on data collected from 41 CSDs across Europe, ECSDA’s new report describes existing account segregation practices with a view to inform the current debate on the optimal level of segregation, focusing on the perspective of central securities depositories.

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CSDR enters into force on 17 September

CSDR enters into force on 17 September

28 Aug 2014 – Following its publication in the Official Journal on Thursday 28 August 2014, the CSD Regulation (“CSDR”) will officially enter into force on 17 September 2014.

Many provisions, however, still require the adoption of implementing and delegated acts, most of which are currently under preparation by the European Securities Market Authority.

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