Information about the provisions of the CSDR as well as its impacts on Clients
KELER was granted its license under the CSDR on 16 December 2020.
CSDR (Central Securities Depositories Regulation, regulation (EU) No 909/2014) is one of the key regulations in the aftermath of the financial crisis, primarily applicable to the operation of central securities depositories. The purpose of this EU regulation is to increase the safety, efficiency and transparency of the financial markets and to promote the establishment of a uniformly regulated European securities market. Pursuant to the regulation, on the one hand, KELER had to undergo a re-authorisation procedure concerning its activity, moreover, CSDR brings changes for KELER, and therefore for our Clients in many other aspects. KELER considers the entry into force of the CSDR to be an important milestone in the operation of the European capital market.
The regulation specifies in detail the requirements a central securities depository must comply with in order to be granted a licence, and the rules it may operate under, formulating specific rules concerning the securities depositories with bank licenses.
The key points of the regulation are the following:
- Shorter settlement period;
- Strict requirements concerning settlement discipline [the application of cash penalties in the event of settlement fails, and buy-in] as of 1 February 2022;
- Requirement of representation in dematerialised form;
- Strict prudential and conduct of business rules for central securities depositories;
- Regulating access to securities depositories.
- Strict prudential and supervisory requirements related to banking-type ancillary services.
However, CSDR affects not only the central securities depositories but directly or indirectly all securities market players (such as parties executing transactions, investment service providers, trading venues, central counterparties) through some of its provisions.
The most important information after the entry into force of the CSDR are summarised for our Clients in the following information document: