On 20 February 2025, the European Securities and Markets Authority (ESMA) issued draft technical standards on different aspects of the Central Securities Depositories Regulation (CSDR) Refit.

The draft technical standards are in the following final reports:

  • Draft technical standards amending Regulation (EU) 2017/392 and Regulation (EU) 2017/394 under CSDR on review and evaluation.
    • CSDR Refit updates Article 22 of the CSDR which establishes a periodic review and evaluation process by requiring ESMA to develop draft regulatory technical standards (RTS) which specify: (i) the information that the central securities depository (CSD) is to provide to its Member State competent authority (NCA) for the purposes of the review and evaluation process; (ii) the information that the NCA is to supply to the relevant authorities referred to in Article 12 of the CSDR, ESMA and, where applicable, the college of supervisors and the competent authority under MiFID II per Article 22(7) of the CSDR  (i.e. information on the results, including any remedial action or penalties, of the review and evaluation process); and (iii) the information that the competent authorities of CSDs belonging to groups are to supply one another.
    • Following the input received through its earlier public consultation, ESMA has maintained its proposal to introduce new reporting requirements but reconsidered its proposal in terms of new requirements for statistical data.
    • ESMA also proposes to include a one-year implementing period for the changes that are likely to require IT developments and adaptation of their processes by CSDs.
  • Draft RTS on the Substantial Importance of CSDs under Article 24a(13) of the CSDR.
    • Paragraph 4 of Article 24 of the CSDR has been deleted and a new Article 24a was inserted by CSDR Refit specifying new requirements to set up mandatory colleges, with the aim of ensuring an effective and efficient coordination of supervision by competent authorities. Article 24a(13) of the CSDR, as amended by CSDR Refit, requires ESMA to develop draft RTS specifying the criteria under which the activities of a CSD in a host Member State could be considered to be of substantial importance for the functioning of the securities markets and the protection of investors in that host Member State.
    • Given that the draft RTS has implications for the establishment of supervisory colleges, and thus for the concerned authorities, ESMA considered that a public consultation was not needed.
  • Draft RTS on the information notified by third-country CSDs (TC CSDs).
    • Article 25(2a) and (13), as well as Article 69(4a) and (4b) of the CSDR, introduce notification requirements for TC CSDs. These notifications requirements apply directly to TC CSDs, without direct involvement of the competent authorities of the TC CSDs.
    • ESMA previously issued a consultation on the draft RTS and given the feedback has made certain changes to its original proposals. For example, regarding the notification timing and reporting in relation to notary and central maintenance services and settlement services, ESMA has removed the specifications on the notification timing and aligned the reporting period with the letter and the spirit of the provisions introduced by the CSDR Refit. ESMA has also maintained the content of its proposal on general information for all notifications and streamlined the information required in relation to both notary and central maintenance services and to settlement services.
    • In summary, TC CSDs will be expected to notify information on the number and country of incorporation of the issuers to which they are providing notary services and of the participants to which they are providing central maintenance services, as well as information relating to the number, value, currency, and relevant laws under which the financial instruments are constituted. Certain information items with respect to issuers and participants incorporated outside of the EU can be notified on an aggregate basis.TC CSDs will also be expected to notify information on the number and country of incorporation of the participants located in the EU to which they are providing settlement services, as well as more granular information on settlement instructions for financial instruments constituted under the law of a Member State and on transactions settled by participants incorporated in the EU.

Next steps

The three final reports with the draft technical standards have been submitted to the European Commission for adoption.