| Author (Corporate) | European Commission |
|---|---|
| Series Title | COM |
| Series Details | (2012) 73 final (7.3.12) |
| Publication Date | 07/03/2012 |
| Content Type | Policy-making |
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The Central Securities Depositories (CSDs) are systemically important institutions for the financial markets. Any trade of securities on or off a securities exchange is followed by post-trade processes that lead to the settlement of that trade, which is the delivery of securities against cash. The CSDs are the key institutions that enable settlement by operating so-called securities settlement systems. CSDs also ensure the initial recording and the central maintenance of securities accounts that record how many securities have been issued by whom and each change in the holding of those securities. While generally safe and efficient within national borders, CSDs combine and communicate less safely across borders, which means that an investor faces higher risks and costs when making a cross-border investment. For example, the number of settlement fails is higher for cross-border transactions than for domestic transactions and cross-border settlement costs are up to four times higher than domestic settlement costs. The proposed Regulation will increase safety in the system and open the market for CSD services, therefore improving the efficiency of securities settlement. The proposed Regulation will complete the regulatory framework for securities market infrastructures, alongside the Directive 2004/39/EC on markets in financial instruments (MiFID) for trading venues, and the proposal for a Regulation on derivative transactions (EMIR) for Central Counterparties (CCPs). |
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| Source Link | Link to Main Source http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2012:0073:FIN:EN:PDF |
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| Subject Categories | Business and Industry |
| Countries / Regions | Europe |
