The European Central Securities Depositories Regulation (CSDR) harmonises the rules for central securities depositories.Contact us
The CSDR was adopted by the EU to stabilize markets and market infrastructures in times of crisis. The regulations apply to central securities depositories (CSDs) as well as to custodians and trading partners involved in securities transactions via CSDs. The following key points are included:
uniform licensing and supervision requirements for CSDs
settlement deadlines of a maximum of 2 days
disciplinary measures in case of late or failed settlement (penalties and mandatory third-party buy-ins)
obligation to dematerialize and immobilize
custody account segregation, daily mandatory reconciliation processes, book entry form of securities, use of Legal Entity Identifier Codes (LEI)
The entire CSDR is scheduled to be implemented by 2025; however, the settlement discipline provisions will take effect as early as February 2022. Depository institutions will be required to settle transactions faster and pass on penalties to their clients from then on.
The implementation of CSDR-compliant processes and IT structures requires all parties involved to work closely together and define market practices.
Capmatix Regulations already offers a fully integrated CSDR solution today. Custodians and trading partners can use it to map and check all transactions and data flows according to different focal points.
Reporting of CSDR-relevant open trades to identify potential settlement fails
Automated distribution of trades to trading partners
Real-time receipt of open trades from custodian banks several times a day
Flexible parametersation of matching requirements
Data digitisation, increase of data quality and process automation to meet time limits
Set up of processes for reporting of penalty payments
Verification of penalty payments
Link to buy-in agent and implement processes to map buy-ins
Reconciliation of all activities taken over by the custodian and implementation of corresponding processes