Capmatix Regulations CSDR

The European Central Securities Depositories Regulation (CSDR) harmonises the rules for central securities depositories.

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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)

 

Action required by February 2022


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.

 

 

What this means for your reporting


The implementation of CSDR-compliant processes and IT structures requires all parties involved to work closely together and define market practices.

 

 

Our solution:
Capmatix Regulations for CSDR


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

Do you have any further questions?

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