Central Securities Depositories (CSD) (Regulation)

According to the Commission, the costs and risks of cross-border securities transactions are too high compared to national securities transactions, the access of market actors – among them trade venues, central counterparties and central securities depositories – is limited and the competition between central securities depositories insufficient. The Commission wishes to address these deficits by measures to increase the safety of securities transactions and to open national securities markets. 


The fact that securities may only be recorded in book-entry form enhances the efficiency and safety of securities trading. It is justifiable to enable CSD to operate banking activities on the basis of exceptional authorisation. However, the Regulation should contain objective and transparent criteria for this authorisation. The obligation to settle on-exchange securities transactions at the latest on the second business day after trading reduces the risk of default and facilitates cross-border securities trading. The permission to record securities at every CSD in the EU strengthens cross-border competition.