The CSDR (Central Securities Depositories Regulation) Settlement discipline regime introduces new measures for the authorisation and supervision of EU Central Security Depositories (CSDs) and sets out to create a common set of standards at a European level.It will entry in force the 01st February 2021.

The main objectives of CSDR are :

  • To harmonise the rules applicable to the CSDs in Europe
  • To increase safety of settlement infrastructures in the EU through applying to CSDs high prudential requirements in line with international standards
  • To establish a level playing field among these CSDs
  • To improve the efficiency of security settlement through introducing a truly integrated market for the operations of national CSDs with no distinction between national and cross-border securities transactions

Articles 6 and 7 of CSDR set out a new settlement discipline regime.

  • CSDs imposes a new penalty mechanism for settlement fails which will serve as a deterrent for participants and their clients that cause settlement fails.
  • CSDR introduces mandatory buy-in mechanism for in-scope transactions, and prescribes fixed periods for the process

Useful links & documents

To find out more, download our CSDR Q&A document