On 16 December 2025, the European Banking Authority (EBA) issued a Final Report containing draft Regulatory Technical Standards (RTS) on the determination of the threshold referred to in Article 54(5) of the Central Securities Depositories Regulation (CSDR) and accompanying appropriate risk management and accompanying prudential requirements to mitigate risks in relation to the designation of credit institutions in accordance with Article 54(2a) of the CSDR.

Background

The CSDR provides for an exemption from the application of the requirements set out in Articles 54(4) and 54(4a) if the designated credit institutions and designated central securities depositories (CSDs), providing banking-type ancillary services to the designating CSD for the cash payments for all or part of a CSD’s securities settlement systems (cash settlement), operate below an appropriate threshold.

Article 54(9) of the CSDR provides a mandate for the EBA to: (i) determine the threshold below which designated credit institutions and designated CSDs may not apply the requirements set out in Article 54(4) as regards the former and 54(4a) as regards both; and (ii) determine accompanying appropriate risk management and prudential requirements to mitigate risks in relation to the designation of credit institutions in accordance with Article 54(2a).

On 14 March 2025, the EBA issued a consultation on the draft RTS. The consultation closed on 16 June 2025.

Final Report

The EBA reports that it has made only minimal changes to what was proposed in its earlier consultation.

Key features of the draft RTS include:

  • Threshold levels: The minimum threshold level is set at EUR 3.75 billion and 1.5% of annual settlement volume, while the maximum threshold is EUR 6.25 billion and 2.5% of annual settlement volume.
  • Dynamic thresholds: The standards introduce aa dynamic threshold that adjusts according to the risk profile of both the designating CSD and the designated credit institution. As activity levels increase, so do the prudential and risk management requirements.
  • Accompanying risk management and prudential measures: Proportionate to the threshold.