As mentioned at the beginning of this briefing note the CSDR was published in the OJ on 28 August 2014 and generally its provisions came into effect on 17 September 2014, although there are some exceptions.
For example, the CSDR’s requirement for any issuer established in the EU to arrange for its transferable securities to be represented in book-entry form will apply from:
- 1 January 2023 to transferrable securities issued after that date; and
- 1 January 2025 to all transferable securities.
However, the requirement to record transferable securities in book-entry form where such securities are the object of a transaction taking place on a regulated trading venue, applied from 17 September 2014.
The T+2 requirement applied from 1 January 2015. If, however, the transaction in transferable securities is executed on a trading venue and settled in a CSD that outsources its activities to a public entity (e.g. in the context of the T2S), the T+2 requirement applies:
- at least six months before such a CSD outsources its activities to the relevant public entity; or
- 1 January 2016 (whichever comes first).
In the UK, the Central Securities Depositories Regulations 2014 (the Regulations) came into force on 21 November 2014. Among other things, the Regulations:
- designate the FCA as the competent authority responsible for the supervision of trading venues and supervision of requirement to record transactions in transferable securities in book-entry form;
- designate the Bank of England (BoE) as the competent authority responsible for matters including the authorisation and supervision of CSDs and oversight of securities settlement systems in the UK; and
- extend the BoE's disclosure of information, information gathering and investigatory powers to functions under the CSDR.
During 2015, the FCA will participate in ESMA’s work on the measures for implementing the CSDR.