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19 December 2014

CSDR: ESMA consults on implementing measures for new settlement regime


The aim of the Central Securities Depositories Regulation is to harmonise certain aspects of the settlement cycle and settlement discipline and to provide a set of common requirements for CSDs operating securities settlement systems across the EU.

ESMA launched three consultations on proposed technical standards, technical advice and guidelines implementing the Central Securities Depositories Regulation (CSDR). 

ESMA intends to organise an open hearing on the CSDR consultation papers at ESMA premises on 13 January 2015.

The CSDR plays a pivotal role for post-trade harmonisation efforts in Europe, as it will enhance the legal and operational conditions for cross-border settlement in the EU.

  • Draft technical standards on settlement discipline, CSD requirements, and internalised settlement: ESMA is consulting on draft technical standards on proposed rules covering settlement discipline measures, the authorisation, recognition, supervision of CSDs, organisational and prudential requirements for CSDs, access requirements (between a CSD and its participants, by issuers to CSDs, between CSDs, and between CSDs and other market infrastructures), as well as internalised settlement reporting (covering securities transactions settled outside a securities settlement system).

  • Draft technical advice on penalties for settlement fails and on the substantial importance of a CSD: The second Consultation Paper includes draft technical advice on proposed penalties for settlement fails, and arrangements to identify CSDs of substantial importance for the functioning of the securities markets and the protection of the investors in a host Member State. The proposed level of penalties is based on average borrowing costs for the relevant securities. ESMA’s advice proposes indicators to assess the substantial importance based on the core services offered by a CSD.

  • Draft guidelines on the access to CCPs or trading venues by CSDs: The third Consultation Paper of ESMA’s CSDR package consists of draft guidelines on access to a central counterparty (CCP) or a trading venue by a CSD. The consultation covers the risks to be taken into account by a CCP or a trading venue when carrying out a comprehensive risk assessment following a request for access by a CSD, as well as when the competent authority of the CCP or the competent authority of the trading venue assesses the reasons for refusal to grant access to a CSD by the CCP or by the trading venue.

This represents the second consultation on ESMA technical standards under the CSDR, following the Discussion Paper published on 20 March 2014.

Full press release

Draft technical standards

Draft technical advice

Draft guidelines



© ESMA


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