CSDR
Central Securities Depositories Regulation
EU regulation governing central securities depositories and securities settlement systems.
CSDR establishes harmonized rules for central securities depositories (CSDs) across the EU and introduces mandatory settlement discipline measures. The regulation requires CSDs to obtain authorization, meet organizational and operational requirements, and provide transparent and non-discriminatory access. CSDR mandates T+2 settlement for most securities transactions and introduces cash penalties for settlement fails to incentive timely settlement. The regulation includes specific requirements for CSD banking services, investment services, and cross-border service provision. CSDR aims to enhance settlement efficiency, reduce settlement risk, and create a level playing field for post-trade services across the EU. The regulation also includes provisions for third-country CSDs providing services in the EU.
Example
T+2 settlement cycle implementation, settlement fail penalties, CSD authorization requirements