The Commission welcomes the political agreement reached yesterday between the European Parliament and the Council on the Commission's proposal of March 2022 to review the Central Securities Depositories Regulation (CSDR).Central Securities Depositories operate the infrastructure that enables the settlement of securities (such as shares or bonds) in financial markets. Central Securities Depositories play a central role in the EU's capital markets and financial system. For example, transactions settled by EU central securities depositories in 2019 reached around €1.12 trillion.
Overall, this agreement will enhance the efficiency of the EU's settlement markets, while safeguarding financial stability. It will ensure more proportionate and effective rules to reduce compliance costs and regulatory burden for central securities depositories, as well as facilitate their ability to offer services cross-border, while simultaneously improving their cross-border supervision.
Mairead McGuinness, Commissioner for Financial Services, Financial Stability and Capital Markets Union, said: “Central Securities Depositories play a pivotal role in the EU's capital market which sees €6 trillion of securities settled each day. With this agreement the EU will enhance the supervisory framework for CSD, improve the efficiency of settlement in the EU and facilitate CSDs to provide a broader range of services across the single market. The Commission particularly welcomes the establishment of colleges for CSDs of substantial importance in more than one Member State as it is a step towards greater EU supervisory convergence and cooperation between EU authorities, making sure that the EU capital market remains a competitive and reliable target for investment, for all market participants.”
The new rules amending the CSDR are expected to apply from 20 days after the date of publication of the regulation, with certain elements of the Regulation being phased in over the coming years.
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Details
- Publication date
- 28 June 2023
- Author
- Directorate-General for Financial Stability, Financial Services and Capital Markets Union