Meeting Central Securities Depositories Regulation (CSDR) requirements

09.01.2017

The European Central Securities Depositories Regulation (CSDR) is one of the key regulations adopted in the aftermath of the 2008 financial crisis.

LuxCSD welcomes the objectives of CSDR, namely to increase the safety and efficiency of securities settlement and the settlement infrastructures in the EU and to establish an enhanced level playing field among European CSDs.

One way the CSDR is designed to achieve its objectives is by requiring all CSDs to apply for a license to operate. The license sets out a host of performance and operational criteria all CSDs must fulfill, such as enhanced capital and transparency requirements and an obligation to provide vertical access to other market infrastructures such as clearing houses and trading venues.

LuxCSD is on track with preparing its application for its CSDR licence. CSD application files are expected to be submitted to the local regulators during Q3 2017 with authorisation expected to be granted six months thereafter.

The CSDR impacts on financial market operations are wide ranging. In addition to CSDs themselves, the CSDR will impact wider financial market infrastructures, including clearing houses and trading venues.

For further information, please see our below attached Briefing Paper, Spotlight (for an executive summary) and video series with Clearstream's Co-CEO Phil Brown, and our Frequently Asked Questions.

LuxCSD customers may also contact their Relationship Officer.