Preparing to comply with the CSD Regulation

Abstract

This paper looks at what is going to change with the soon-to-be-adopted European Regulation on Central Securities Depositories (CSDs), focusing on the adaptations that will be required of CSDs and market participants. Not only will CSDs face harmonised and sometimes stricter safety standards, but their clients also will be subject to new requirements, such as stringent penalties if they fail to deliver securities on time. Together with other public initiatives like TARGET2-securities, the CSD Regulation also will open the post-trade market to further competition, progressively replacing national specificities by common European standards.