Meeting Central Securities Depositories Regulation (CSDR) requirements
The European Central Securities Depositories Regulation (CSDR) is one of the key regulations adopted in the aftermath of the 2008 financial crisis.
Clearstream's Central Securities Depositories (CSDs) welcome the objectives of CSDR, namely to increase the safety and efficiency of securities settlement and the settlement infrastructures in the EU and to establish an enhanced level playing field among European CSDs.
One way the CSDR is designed to achieve its objectives is by requiring all CSDs to apply for a licence to operate. The licence sets out a host of performance and operational criteria all CSDs must fulfill, such as enhanced capital and transparency requirements.
The Clearstream CSDs filed their applications for their CSDR licences to the local regulators at the end of September 2017. Following initial feedback from their relevant local regulators, the Clearstream CSDs continue to remain in close dialogue with them throughout the ongoing CSDR authorisation process. Further information was provided to local regulators in Q1 2019.
Clearstream Banking AG (CBF) provided its final filing in Q1 2019. On 22 July 2019, BaFin issued a declaration of completeness with regards to CBF’s application file pursuant to Art. 17 CSDR (Core Services). On 21 January 2020, CBF received its CSDR licence.
In agreement with BaFin, the procedure under Art. 55 CSDR will be carried out next year.
LuxCSD provided its final filing on 9 October 2019. On 28 October 2019, CSSF issued a declaration of completeness with regards to LuxCSD’s application file pursuant to Art. 17 CSDR (Core Services).
The CSDR impacts on financial market operations are wide ranging. In addition to CSDs themselves, the CSDR will impact wider financial market infrastructures, including clearing houses and trading venues.
For further information, please see our attached Briefing Paper, Spotlight (for an executive summary), below videos with Clearstream's Co-CEO Phil Brown and Frequently Asked Questions.
Clearstream Banking customers may also contact their Relationship Officer.
Tune into our interviews with Philip Brown, Co-CEO of Clearstream Banking Luxembourg, talking about the CSDR and its impact on CSDs and on CSD customers: