ESMA publishes technical standards to clarify CSDR Refit framework
21 February 2025 EU
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The European Securities and Markets Authority (ESMA) has published technical standards on different aspects of the Central Securities Depositories Regulation (CSDR) Refit.
The rules mainly affect central securities depositories (CSDs), but they also have indirect implications for market participants like investors, banks, and financial institutions.
The rules cover the information that European CSDs must provide to national competent authorities (NCAs) for review and evaluation, the criteria for assessing the importance of European CSDs in a host member state, and the information third-country CSDs must notify.
CSDs must report information in a consistent way to local regulators, which means they may need to upgrade their IT systems and data processes.
Foreign CSDs operating in the EU will have to provide more structured data, making it easier for regulators to understand their risks and role in the market.
If a CSD is considered important in another EU country, it gets extra supervision, which could mean faster and safer settlements for cross-border trades.
The technical standards are set out in three separate final reports, considering the input from relevant stakeholders.
Coming into force in February 2023, the CSDR Refit is a revision of the original CSDR adopted by the EU in 2017 to harmonise and strengthen the settlement infrastructure within the region by regulating CSDs and the securities settlement process.
ESMA has submitted the three final reports to the European Commission, which has three months to decide whether to endorse the proposed amendments.
The rules mainly affect central securities depositories (CSDs), but they also have indirect implications for market participants like investors, banks, and financial institutions.
The rules cover the information that European CSDs must provide to national competent authorities (NCAs) for review and evaluation, the criteria for assessing the importance of European CSDs in a host member state, and the information third-country CSDs must notify.
CSDs must report information in a consistent way to local regulators, which means they may need to upgrade their IT systems and data processes.
Foreign CSDs operating in the EU will have to provide more structured data, making it easier for regulators to understand their risks and role in the market.
If a CSD is considered important in another EU country, it gets extra supervision, which could mean faster and safer settlements for cross-border trades.
The technical standards are set out in three separate final reports, considering the input from relevant stakeholders.
Coming into force in February 2023, the CSDR Refit is a revision of the original CSDR adopted by the EU in 2017 to harmonise and strengthen the settlement infrastructure within the region by regulating CSDs and the securities settlement process.
ESMA has submitted the three final reports to the European Commission, which has three months to decide whether to endorse the proposed amendments.
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