The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has released new technical standards addressing various aspects of the Central Securities Depositories Regulation (CSDR) Refit.
The updated rules specify the information that European Central Securities Depositories (CSDs) must provide to their national competent authorities (NCAs) for review and evaluation. They also outline criteria for assessing the importance of European CSDs in host Member States and the details required from third-country CSDs.
Key Highlights of the Technical Standards
The technical standards are detailed in three final reports:
- Review and Evaluation Process of EU CSDs – ESMA recommends harmonizing the data shared by CSDs to facilitate regulatory assessment. A one-year implementation period is proposed for reporting items requiring IT system adaptations.
- Criteria for Assessing Substantial Importance – The standards define when an EU CSD’s operations in a host Member State are considered crucial to the securities markets and investor protection. It includes data collection requirements to assess this importance and determine which CSDs require supervisory colleges.
- Notifications from Third-Country CSDs – ESMA proposes streamlining notification requirements to ensure accurate understanding of the provision of notary, central maintenance, and settlement services within the EU.
Regulatory Impact and Next Steps
The CSDR Refit aims to refine and clarify the regulatory framework while reducing unnecessary regulatory burdens. ESMA’s final reports incorporate feedback from relevant stakeholders to enhance the efficiency and clarity of the rules.
The three final reports, along with the draft technical standards, have now been submitted to the European Commission (EC) for adoption.
To find out more details please visit : https://www.esma.europa.eu/