Following a provisional agreement it reached with the European Parliament in June this year, The Council of the EU has adopted updates to the Central Securities Depositories Regulation (CSDR). As drawn out in the agreement, the new regulation aims to “reduce the financial and regulatory burden on CSDs and improve their ability to operate across borders, while also strengthening financial stability”.

In a press release, the council listed the main changes, which include a simpler passporting regime, better supervision, improved settlement efficiency, and access to banking-type ancillary services. These changes are expected to reduce compliance costs for CSDs, thus improving the efficiency of securities settlement in the EU. CSDs should find it easier to offer services across borders, while supervisors will have access to better information and cooperation opportunities.

The council stated that the regulation will be published in the official journal and enter into force 20 days after its publication.

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