Central securities depositories (CSDs)

Key points:

• The EESC welcomes this Regulatory initiative. With the CSD Regulation in place, the Commission will have completed the three pillars of the new framework of financial infrastructure regulation in the EU: CSD, EMIR and MiFID/MiFIR.
• A major change proposed in the scope of CSD activities is the prohibition from holding a limited banking licence. This will affect the two big international CSDs which use their banking capabilities to support the settlement and custody process on a very large scale.
• The proposal for a uniform settlement requirement at T+2 is very important. While it is likely that this can be achieved in the EU, a number of concerns will need to be addressed for global transactions.
• The proposals require the dematerialisation of tradable securities. There is a transition period ending on 1 January 2020. Even so, Member States have made uneven progress in this regard and a political compromise may be needed.

For more information please contact the INT Section Secretariat

Other EESC opinions:

• Opinions on Financial Services
• Opinion on Payment and securities settlement systems/ financial collateral arrangement (CESE 1907/2008, INT/433)