On 27 June 2023, the Council of the EU announced that it has reached a provisional agreement with the European Parliament on proposed changes to the rules on central securities depositories (CSDs). The amendments to the Central Securities Depositories Regulation (CSDR) are intended to reduce the financial and regulatory burden on CSDs and improve their ability to operate across borders, while also strengthening financial stability.

The proposed Regulation provisionally agreed by the Council and Parliament updates the CSDR, which was adopted in 2014. Key updates highlighted in the press release include:

  • Simplifying the passporting regime by clarifying and simplifying the rules, with the aim of reducing barriers to cross-border settlement and easing the administrative and financial burden.
  • Making supervision of CSDs more effective by improving cooperation and information exchange between supervisors.
  • Setting out measures to improve efficiency by amending certain elements of the settlement discipline regime, including the preconditions for applying so-called mandatory buy-ins.
  • Provisions adjusting the conditions under which CSDs can access banking-type ancillary services, including through other CSDs. As a result, offering services for a broader range of currencies as well as across borders will be facilitated.

The provisional agreement requires formal approval by the EU’s member state ambassadors. It will then be adopted by the Council at a forthcoming meeting following legal and linguistic revision of the text.

The regulation will enter into force following publication in the Official Journal of the EU.