On 28 August the Regulation on Central Securities Depositories (CSDs) was published in the Official Journal. The Regulation aims to harmonise the authorisation and supervision of CSDs across the EU and to improve settlement discipline in the securities settlement systems (SSSs) that CSDs operate. The Regulation comes into force on 17 September 2014 and its various provisions will begin to apply at different points from January 2015. The Regulation is directly applicable in Member States though Level 2 measures are required to implement a number of its provisions.
This briefing provides an overview of the structure and major features of the Regulation, including its T+2 settlement requirements, new settlement discipline rules and the authorization process for CSDs. The briefing also highlights some key areas of concern both for banks providing custody and settlement services and for entities trading securities in the EU.