The UK's response to the Commission's consultation on CSDs and securities law welcomes reform that will lead to a more competitive and robust landscape for CSDs. However, it says two areas need further consideration:

  • the effects of the proposals on corporate law in Member States and on other Directives and proposals such as the Settlement Finality Directive and Securities Law Directive; and
  • how legislation should address settlement discipline issues and settlement cycles.

It also says the Commission must consider whether the benefits of its proposals will outweigh the costs. Separately, it thinks the Commission needs to clarify which provisions are prudential and which non-prudential.(Source: UK Authorities' response to the public consultation on Central Securities Depositories (CSDs) and on the harmonisation of certain aspects of securities settlement in the European Union)