CSDR - are you ready?

The Central Securities Depositories Regulation (CSDR) is one of the key EU regulations designed to increase the safety, efficiency and transparency of the financial markets.

CSDR is significant to all financial market participants in Europe – and globally. Its measures impact European CSDs, the wider financial market infrastructures and global trading parties dealing in securities that settle in an EU CSD or at either of the ICSDs.

CSDR - how does it affect you?

Clearstream has published a  CSDR briefing paper providing information on what new changes the regulation brings for customers. The paper discusses the new settlement discipline regime, account segregation rules and other customer impacts CSDR introduces. It also includes an example scenario of the cash penalty rates to be applied when settlement fails.

Phil Brown, Co-CEO of Clearstream Banking Luxembourg, sat down with us to share his views on CSDR. He takes us through the regulation and its main customer impacts.

"The CSDR is one of the top topics I am asked about by clients - the settlement discipline regime in particular is sparking interest"

What is CSDR? Customers are beginning to realise that this regulation has direct operational and technical impacts on them, not just on the CSDs. Hear what Phil Brown has to say along these lines.

What are the customer impacts? Phil Brown outlines main customer impacts including the settlement fine process and new account segregation requirements.

Executive insight

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 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 had six months, starting from 31 March 2017, to submit their CSDR application files with their respective National Competent Authorities. Clearstream's CSDs 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.

Clearstream: CSDR - helping us to offer customers efficient services and keeping your assets as safe and secure as possible. Watch this space for further CSDR news, insights and developments.

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