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, allowing them to benefit from the grandfathering regime.
Clearstream Banking S.A. (CBL) has provided its filing at the end of August 2020. On 12 October 2020, CSSF issued a declaration of completeness with regards to CBL’s application pursuant to Article 17 CSDR (Core Services), Article 55 (Banking-Type Services) and the Interoperable Link, the Bridge. On 12 April, CBL was granted all three licenses.
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 Article 17 CSDR (Core Services). On 21 January 2020, CBF received its CSDR licence.
CBF has handed in its application under Article 55 CSDR mid-January 2021. On 26 February 2021, BaFin issued the respective completeness declaration for Article 55 CSD (Banking-Type Services).
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 Article 17 CSDR (Core Services). On 15 April 2020, LuxCSD received its CSDR licence.
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 Spotlight (for an executive summary and below videos with Clearstream's Head of Global Relationship Management, Sales and Client Services Phil Brown). Please also refer to the Customer readiness section.
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: