CSDR and CPMI-IOSCO

The Euroclear group of international and national central securities depositories (ICSDs) welcome the objectives of CSDR, namely to increase the safety and efficiency of securities settlement and its infrastructures within the EU and to establish an enhanced level playing field among European CSDs. One way the CSDR is designed to help is to harmonise certain aspects of the settlement cycle and discipline, and to provide a set of common requirements for CSDs operating securities settlement systems across the EU. CSDR plays a pivotal role for post-trade harmonisation efforts in Europe, as it will enhance the legal and operational conditions for cross-border settlement within the EU. CSDR provides:

  • Shorter settlement periods
  • Settlement discipline measures (mandatory cash penalties and ‘buy-ins’ for settlement fails)
  • An obligation regarding dematerialisation for most securities
  • Strict prudential and conduct of business rules for CSDs; Strict access rights to CSD services

Increased prudential and supervisory requirements for CSDs and other institutions providing banking services ancillary to securities settlement.

Client default scenario testing

In line with CSDR requirements, we simulated our default and recovery procedures with a selection of clients in Q4 2017. The report, complete with the scenario findings, is available upon request from your account manager. We take our role as a systemically important global infrastructure provider extremely seriously, and will conduct further default simulations at least once a year.