BoE grants CSDR licence to Euroclear UK & Ireland
08 December 2020 UK
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Euroclear UK & Ireland (EUI) has obtained its Central Securities Depositories Regulation (CSDR) licence from the Bank of England.
This makes EUI the seventh and final CSD entity in the Euroclear Group to receive its licence.
EUI was also recently granted the ability to continue to offer issuer CSD services after the Brexit transition period ends on 31 December 2020.
CSDs play a key role in the functioning of financial markets by ensuring the settlement of securities transactions, the safeguarding of assets and in mobilising collateral for monetary policy operations, both domestically and across borders, Euroclear explained.
CSDR aims to raise and align standards across European CSDs by providing assurance from the regulators to investors that stringent measures are in place to ensure the security of their assets and the efficiency of transactions.
As such, the new regulatory framework aims to bring risk and cost-reduction benefits to financial markets as a whole.
Last month, the European Securities and Markets Authority (ESMA) published its first two reports on the implementation of the CSDR.
Michael Carty, CEO of EUI, comments: “Obtaining a CSDR licence demonstrates the high standards to which Euroclear CSDs operate and provides a strong baseline for EUI as we invest further in providing a robust and relevant CSD platform for the UK.”
Lieve Mostrey, CEO of Euroclear Group, adds: “This accomplishment by EUI is a significant moment for Euroclear as a group. After a multi-year journey we have now obtained CSDR licenses in seven separate markets.
"I am extremely proud of the unrelenting focus, in very uncertain times, of all entities to achieve this goal. CSDR means that European financial markets are now even safer and even more resilient, which we fully support in our role as financial market infrastructure.”
This makes EUI the seventh and final CSD entity in the Euroclear Group to receive its licence.
EUI was also recently granted the ability to continue to offer issuer CSD services after the Brexit transition period ends on 31 December 2020.
CSDs play a key role in the functioning of financial markets by ensuring the settlement of securities transactions, the safeguarding of assets and in mobilising collateral for monetary policy operations, both domestically and across borders, Euroclear explained.
CSDR aims to raise and align standards across European CSDs by providing assurance from the regulators to investors that stringent measures are in place to ensure the security of their assets and the efficiency of transactions.
As such, the new regulatory framework aims to bring risk and cost-reduction benefits to financial markets as a whole.
Last month, the European Securities and Markets Authority (ESMA) published its first two reports on the implementation of the CSDR.
Michael Carty, CEO of EUI, comments: “Obtaining a CSDR licence demonstrates the high standards to which Euroclear CSDs operate and provides a strong baseline for EUI as we invest further in providing a robust and relevant CSD platform for the UK.”
Lieve Mostrey, CEO of Euroclear Group, adds: “This accomplishment by EUI is a significant moment for Euroclear as a group. After a multi-year journey we have now obtained CSDR licenses in seven separate markets.
"I am extremely proud of the unrelenting focus, in very uncertain times, of all entities to achieve this goal. CSDR means that European financial markets are now even safer and even more resilient, which we fully support in our role as financial market infrastructure.”
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