15 April 2014

EP votes on CSD regulation

Key elements

The main objective of the Central Securities Depositaries Regulation is to increase the safety and efficiency of securities settlement and settlement infrastructures (CSDs) in the EU by providing, among others, for the following:

• Shorter settlement periods;
• Deterrent settlement discipline measures (mandatory cash penalties and ‘buy-ins’ for settlement fails);
• Strict prudential and conduct of business rules for CSDs;
• Strict access rights to CSD services;
• Increased prudential and supervisory requirements for CSDs and other institutions providing banking services ancillary to securities settlement.

Comments

Internal Market and Services Commissioner Michel Barnier said: "I am pleased that the European Parliament has adopted new rules on securities settlement and central securities depositories (CSDs) in the EU. Settlement is a very important process for securities markets and for the financing of our economy. The numbers speak for themselves: in the European Union, transactions worth over one quadrillion euro were settled by CSDs in the last two years. The new Regulation will ensure that settlement is carried out in a safer and more efficient manner in Europe."

Next steps

Following the vote in plenary, the adoption of the CSD Regulation must be formally approved by the Council. The publication of the new rules in the Official Journal of the European Union is foreseen for the third quarter of 2014.

© European Commission