Gesamtzahl der Seitenaufrufe

Freitag, 10. Oktober 2014

The EU regulatory framework for securities market infrastructures etwas umfangreicher....aber wert sich damit zu beschäftigen....

CentralSecuritiesDepositoriesRegulation(CSDR)

Last updated: 10/10/2014

The EU regulatory framework for securities market infrastructures

The proposal for a Regulation on improving securities settlement in the European Union and on central securities depositories (CSDs) and amending directive 98/26/EC was first adopted on 7 March 2012. The Regulation aims to improve the securities settlement process in Europe and introduces a common authorisation, supervision and regulatory framework for CSDs. The Regulation also introduces a number of legal obligations directly on market operators including, inter alia:
  • to represent all transferable securities in book entry form, i.e. recording electronically, and to record them in CSDs before trading them on regulated venues;

  • to settle their obligations no later than on the second business day after trading takes place (T+2);

  • procedures and penalties relating to settlement fails; and

  • a mandatory 'buy-in' of trades that fail to settle.
On 28 August 2014 the Regulation on settlement and Central Securities Depositories (CSDR) was formally published in the Official Journal of the EU. A number of CSDs are subject to credit and liquidity risks deriving from the provision of banking services ancillary to settlement. The securities settlement systems operated by CSDs are of a systemic importance for the functioning of securities markets and also serve as an essential tool to control the integrity of an issue, hindering the undue creation or reduction of issued securities, thereby playing an important role in maintaining investor confidence. The Regulation forms an important part of the European Commission’s agenda to enhance the safety and soundness of the financial system. Together with EMIR and MiFID II, the three pillars will form a framework in which systemically important securities infrastructures are subject to common rules on a European level.
  • trading venues, ie MTFs (multi-lateral trading facilities), OTFs (organised trading facilities), where the trading of securities takes place - regulated by MiFID;

  • central counterparties (CCPs), responsible for the clearing of securities transactions - regulated by EMIR

  • central securities depositories (CSDs), responsible for settlement of securities transactions - to be regulated by CSDR.
The CDSR aims to harmonise both the timing and conduct of securities settlement in Europe and the rules governing Central Securities Depositories (CSDs) which operate the infrastructures enabling settlement. The regulation introduces an obligation on market operators to represent all transferable securities in book entry form and to record them in CSDs before trading them on regulated venues. The measures address market operators in the context of securities settlement and also CSDs regarding their authorisation and ongoing supervision.
T+2 will harmonise securities settlement periods at a maximum of two business days after the trading day, (T+2) for certain securities transactions across the EU). Article 5(2) of the CSDR, when implemented, provides for an effective T+2 date of 1 January 2015, in time for the launch of Target2-Securities (T2S), the European Central Bank initiative to streamline Europe's securities settlement structure due to go live in June 2015. The date of application of the T+2 requirement is further postponed for transactions in transferable securities that are executed on a trading venue and settled in a CSD that outsources its activities to a public entity (from 1 January 2016 at the latest).

Latest

10 October 2014 - The Joint Committee of the European Supervisory Authorities (EBA, ESMA and EIOPA) published its have agreed to support a harmonized implementation of T+2 as standard settlement period in OTC Secondary Markets for transferable government securities, as of 6 October 2014.
From 6 October 2014, the UK and Irish markets will shorten the standard settlement cycle from T+3 to T+2. This means that securities transactions will settle two business days after trade date rather than three.
3 October 2014 - the European Commission published a further set of FAQs on the CSDR regarding:
  • the timing of implementation;

  • the scope of the requirements; and

  • the position of third country CSDs.
2 October 2014 - The Association for Financial Markets in Europe (AFME) published a briefing notesetting out its understanding of the T+2 Approach for migration on 6 October 2014.
28 August - The Central Securities Depositories Regulation (CDSR) has now been published in the Official Journal of the EU. Regulation (EU) 909/2014 takes effect from various dates in January 2015 and will be applicable to all transferable securities from January 2025.
23 July - The Council of the EU published a press release announcing that it has adopted the Regulation on improving securities settlement and regulating central securities depositories at first reading.
The European Commission has also published its provisional request to ESMA asking for technical advice on possible delegated acts concerning certain settlement discipline measures and aspects relating to supervisory cooperation under CSDR. Article 7(13) of CSDR requires the Commission to adopt a delegated act to specify the parameters for the calculation of a deterrent and proportionate level of cash penalties for settlement fails.
17 April - The European Parliament published the provisional text of the Regulation on Central Securities Depositaries which was formally adopted on 15 April 2014. The Regulation creates, for the first time at European level, a common authorisation, supervision and regulatory framework for CSDs. The European Commission published a press release and a set of FAQs. The press release summarises the key elements of the Regulation as providing:
  • Shorter settlement periods;

  • Deterrent settlement discipline measures (mandatory cash penalties and ‘buy-ins’ for settlement fails);

  • Strict prudential and conduct of business rules for CSDs;

  • Strict access rights to CSD services;

  • Increased prudential and supervisory requirements for CSDs and other institutions providing banking services ancillary to securities settlement.
Following the vote in plenary, the adoption of the CSD Regulation must be formally approved by the Council. The publication of the new rules in the Official Journal of the European Union is foreseen for Q3 2014.
20 March - ESMA published a discussion paper on the Central Securities Depositories Regulation (CSDR). ESMA is calling for public feedback on possible content to draft technical standards on matters such as settlement discipline, CSD registration and requirements, including confirmation rules (acceptance or rejection of terms in good time before the intended settlement date) for trading venues and investment firms, as well as access to CSDs by other CSDs, participants and other market infrastructures. Responses are due by 22 May 2014.
ESMA is mandated to draft technical standards on more than 30 aspects under CSDR. Following the DP, and on the basis of the relevant input received, ESMA will finalise its proposed draft technical standards in a consultation paper which will be dependent on the date of publication of the CSDR in the Official Journal and the final deadline for ESMA to deliver the draft RTS and ITS to the EC.
ESMA published its first Report on Trends, Risks and Vulnerabilities No. 1, 2014, and its Risk Dashboard for 4Q 2013. The report looks at the performance of EU securities markets, assessing both trends and risks in order to develop a comprehensive picture of systemic and macro-prudential risks in the EU that can serve both national and EU bodies in their risk assessments. The Report provides in-depth analyses on:
  • High-frequency-trading (HFT);

  • Structural vulnerabilities due to low interest rates;

  • First evidence from ESMA’s Central Rating Repository;

  • EU Central Securities Depositories (CSDs); and

  • Stress-testing of investment portfolios:
12 March 2014 -
The article on CSDs looks at the complex and extensive interdependencies between CSDs, financial market infrastructures, and the wider financial sector.
26 February 2014 - the Permanent Representatives Committee approved on behalf of the Council, the agreement it reached with the EP on the new rules on central securities depositories (CSD) and published the final compromise text. Provisional political agreement with the EP was reached on 18 December 2013.
On 20 December 2013 - the EU provisionally agreed the regulatory safeguards and structure for central securities depositories (CSD). CSDs will face an additional capital surcharge for the provision of collateral and other banking services to financial market participants. Increased cooperation of supervisors in authorising and supervising the provision of these banking services to CSD users. CSDs will be required to operate a mandatory buy-in of trades which fail to settle and then deliver them to the non-defaulting counterparty. Commenting on the draft agreement Michel Barnier said that he hoped that "the remaining technical work can be finalised as soon as possible under the EU Greek Presidency so that these new rules can be formally adopted by the co-legislators ".
On 25 September 2013 - the Committee of Permanent Representatives agreed on a general approach with regards to the CSDR proposal and set out the current state of play. The agreement will enable the presidency to negotiate with the Europe an Parliament with the aim of adopting the regulation at first reading. The regulation also needs to be in place for the Target2-Securities initiative to begin operating as planned in 2015. There is one sticking point still requiring agreement, namely the authorisation procedure in Article 53 for a CSD to provide banking type of ancillary services.
Much debate has taken place within the Council on fundamental issues such as the possible reconsideration of the strict separation of ancillary banking services and the sovereign duties performed by CSDs, as well as the defining of disciplinary rules applicable to settlement and their implementation procedures. The draft text was finally adopted on 13 September 2013, allowing the commencement of trialogue discussions.
The draft text was adopted by the ECON Committee on 4 February 2013 and by the European Parliament on 20 May 2013.
7 March 2012 - the Commission adopted a proposal for a Regulation on improving securities settlement in the European Union and on central securities depositories (CSDs) and amending Directive 98/26/EC. The Regulation introduces an obligation of dematerialisation for most securities, harmonised settlement periods for most transactions in such securities, settlement discipline measures and common rules for central securities depositories (CSDs). The Commission’s proposal is currently under consideration by the European Parliament and the Council.
Eingestellt von um

Keine Kommentare:

Kommentar veröffentlichen

Abonnieren Kommentare zum Post (Atom)