CSD regulation: A major change for the post-trade arena

Abstract

The efficiency of capital movements in the post-trade arena is now at the centre of many changes in the custody market. The last major change was the European Commission’s first all-encompassing effort to harmonise the legal frameworks for central securities depositories (CSDs). Quite surprisingly, part of the market reacted very rapidly to this new initiative, while other players have remained hesitant. Yet, in a fast-changing financial world with a market already quite oligopolistic, the future of the custody market is far from clear, as many questions remain unanswered.