On 30 June 2021, the European Commission (Commission) published a draft of the report that it is required to produce under Article 75 of the Central Securities Depositories Regulation (CSDR).

Article 75 of the CSDR requires the Commission to review and prepare a general report on a wide range of issues by 19 September 2019. The report was postponed and its scope is narrower than prescribed in the CSDR due to delays in the application of some measures, as well as the recent (re)authorisation of a sufficient number of CSDs under the CSDR to allow a comprehensive assessment. Article 81(2c) of the Regulation establishing the European Securities and Markets Authority (ESMA) also requires the Commission to assess the potential supervision of third country CSDs by ESMA.

The Commission states that it has engaged in a broad consultation process when preparing the report and in broad terms respondents feel that the CSDR is achieving its original objectives to enhance the efficiency of settlement in the EU and the soundness of CSDs. In some areas, the introduction of significant changes to the CSDR would be premature considering the relatively recent application of requirements. However, stakeholders have raised concerns regarding the implementation of specific rules that already apply (for example on the cross-border provision of services, access to commercial bank money and the framework for third country CSDs).

The report summarises the main areas under review. In light of the issues identified, and as also announced in the 2021 Commission Work Programme, the Commission considers presenting a legislative proposal to amend the CSDR to improve its efficiency and effectiveness (CSDR REFIT), subject to an impact assessment that will consider the most appropriate solutions in more depth.

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