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What is on with CSDR?

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Marcus Hjorth, Head of Legal & Public Affairs at Euroclear Sweden, summarises the status of the CSD regulation and how
the coming changes will affect the Swedish securities market.

Since 2012, the EU has been working to develop new rules for central securities depositories and its participants. Several important steps have been taken to complete this work in early 2014.

One result of this is that the legislation, in the form of an EU regulation, is essentially complete.

“The negotiations have been successful for Sweden”, Marcus Hjorth says. “Investors will still be able to maintain accounts directly with us at Euroclear Sweden and the investors will still be able to turn to a bank or an investment firm to reach their Euroclear Sweden account.”

This means that the Swedish VP-accounts and account operators are recognised in the new EU regulation.

What happens next?

“Following next, the European Securities and Markets Authority (ESMA) will develop more detailed rules, Marcus Hjorth says. “We believe that the proposal will arrive in autumn 2014 and be finished beginning of 2015, but there is still an uncertainty regarding the exact date of the actual application of the new law, particularly the requirement of a fee for late settlement.”

Settlement cycle is shortened this autumn

However, one important date is already set: on 6 October, many of the European securities markets will adapt to the new rules by shortening the settlement cycle for particular trades from three to two business days. Read more and see how the new settlement scheme will look here.

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