On 13 March 2017, the Malta Financial Services Authority (the “MFSA”) issued a circular to the financial services industry addressed to central securities depositories (“CSDs”) and market participants on trading venues, following the publication of a number of regulatory and implementing technical standards supplementing Regulation (EU) No 909/2014 of the European Parliament and of the Council on improving securities settlement in the European Union (“EU”) and on CSDs (“CSDR / the Regulation”) in the Official Journal of the EU.
The CSDR, which entered into force on 17 September 2014, seeks to enhance the safety, soundness and efficiency of securities settlement infrastructures in the EU. The Regulation empowers the European Commission, following the submission of draft regulatory technical standards by the European Securities and Markets Authority (“ESMA”), to adopt delegated acts specifying various technical standards applicable to CSDs.
Against this background, on 11 November 2016 the European Commission endorsed a number of technical standards concerning authorisation, supervisory, operational and prudential requirements for CSDs, as well as internalised settlement reporting requirements covering securities transactions settled outside a securities settlement system. The delegated legislation shall enter into force after a period of twenty days from publication and a final set of CSDR Level 2 measures targeting settlement discipline is expected to be published later this year.
The full set of the aforementioned CSDR standards may be accessed through the following link.