Our executives regularly blog about topics of interest to the industry. Here's what they have to say about the CSDR.
Phil Brown introduces the purpose behind CSDR in his blog. He offers insight into the new settlement discipline regime with reference to mandatory buy-ins and cash penalties when settlement fails.
Berthold Kracke, CEO of Clearstream Banking Frankfurt, introduces the new CSDR licence requirements.
"A licence to operate: In true Bond spirit, at Clearstream, we’re more stirred into positive action than shaken by the arrival of CSDR. We see our role not just as helping to realise the CSDR objectives through obtaining licences for our CSDs to operate, but as one of sharing our expertise and guidance as far as we can, to help the wider market infrastructure machinery align with the new regime."
What does this all mean?
The CSDR is set to improve the efficiency of CSD operations and the safety of CSD customers' assets. It is designed to increase CSD transparency and capital requirements via licence criteria that all CSDs must fulfill in order to be able to operate, and by introducing market measures to further encourage efficient settlement processes.
Following the publication of CSDR Level 2 legal acts in the Official Journal of the European Union on 10 March 2017, EU Member State CSDs have six months, starting from 31 March 2017, to submit their CSDR application files with their respective National Competent Authorities. The National Competent Authorities then have 30 working days to declare the files complete, with authorisation expected six months thereafter. Clearstream's CSDs have submitted their licence applications, in time for the end of September deadline, to respectively obtain a CSDR operating licence. Read more about the application process and timelines on our CSDR dedicated webpages.