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Regulation to be finalised early 2014

European regulation on central securities depositories aims at smooth cross-border settlement and harmonisation. The impact on the Finnish market will be defined early 2014.

We have been closely monitoring the development of the European Parliament regulation on central securities depositories. The proposal is currently under discussion among the member countries.

The directive will be finalised early 2014. The Finnish Ministry of Finance has indicated that they will form a working group to define the impact locally.

The aim of the directive is to

  • harmonise settlement regulation for market operators.
  • allow the CSDs to provide their cross-border services without different national requirements concerning e.g. authorisation, supervision,organisation or risks.
  • increase safety of the securities holding.

The directive requires that CSDs and their participants offer segregated accounts. And the current proposal also states that the book-entry increases the efficiency of settlement and ensures the security and integrity.

This article was published on Euroclear Finland's newsletter >

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