Brexit update: Irish Securities Settlement and Relevant DI Settlement

This communication provides the latest update in relation to Euroclear UK & Ireland’s ability to continue to offer issuer CSD services from the expiry of the transition period (scheduled for 31 December 2020) in respect of:

• securities constituted under the law of Ireland (Irish Securities Settlement)
• securities constituted under the laws of Cyprus, The Netherlands or Luxembourg, which are represented in the CREST system by way of registrar Depository Interests (DIs), where there is no other CSD in the holding chain (Relevant DI Settlement)

As we have previously communicated, from the expiry of the transition period, Euroclear UK & Ireland requires third country CSD recognition pursuant to the CSD Regulation in order to continue to provide Irish Securities Settlement and Relevant DI Settlement.

Today, the European Securities and Markets Authority (ESMA) granted this recognition to Euroclear UK & Ireland for Irish Securities Settlement and Relevant DI Settlement. The recognition is effective as from the end of the transition period and will expire on 30 June 2021, in line with the equivalence decision issued by the European Commission earlier in November.

The migration of Irish corporate securities from Euroclear UK & Ireland to Euroclear Bank as Issuer CSD, continues according to plan for the one-off migration to be completed on 15 March 2021.

Euroclear UK & Ireland continues to work with the issuers of the DIs who are taking steps (together with the issuers of the underlying securities) to ensure that Euroclear UK & Ireland can continue to settle the impacted DIs in the CREST system as from the expiry of the recognition decision.

In the run up to the UK’s exit from the EU, and during the transition period, Euroclear UK & Ireland and Euroclear Bank have issued a number of consultations and notifications which are available on our respective websites.

If you would like to discuss the above, please contact your Euroclear Relationship Manager who remains available to assist.

Read the announcement on the ESMA website >