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Proposal for a decision

The Commission proposes simpler rules to make settlement in EU financial markets safer and more efficient


This review aims to make securities settlement in the European Union safer and more efficient, improving the attractiveness of the EU’s capital markets and ultimately contributing to the financing of our economy.

Today’s proposal will reduce compliance costs and regulatory burdens for Central Securities Depositories, as well as facilitate their ability to offer a broader range of services cross-border, while improving their cross-border supervision. More specifically, changes are proposed in the following areas:

  • Settlement discipline: a ‘two-step approach’ is introduced under which mandatory buy-ins could become applicable if and when the penalties regime alone does not improve settlement fails in the European Union.
  • Banking-type ancillary services: improve conditions under which CSDs can access banking services by amending the threshold for such services and broadening the range of providers for such services.
  • Passporting: it simplifies passporting requirements for CSDs, through which they can operate across the EU with one single license by removing costly and duplicative procedures.
  • Cooperation between supervisory authorities: It improves cooperation between supervisors by requiring the establishment of colleges of supervisors for certain CSDs increasing consistent and convergent supervision.
  • Insight in the activities of third-country CSDs: ending the grandfathering clause and introducing a notification requirement ensures that ESMA and national supervisors have better information about the activities of third-country CSDs in the EU.

The proposal will now be submitted to the European Parliament and the Council for their consideration.