Adaptation to the Central Securities Depositories Regulation

£1,500.00

An Exploration of the Implications of the Regulation’s Reporting Requirements on Buyside & Sellside Business Process and Workflows

This report examines the March 2019 go-live of the EU’s Central Securities Depositories Regulation, in which a multitude of country-specific rules historically created an environment in which financial markets participants were required to comply with end-investor and regulatory reporting mandates. The eventual full implementation of the EU’s CSDR across the entirety of Europe means that, in time, the continent’s CSD industry will likely adopt a more uniform, single market-friendly structure.

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GreySpark Partners believes that the ability of asset management firms, hedge funds, investment banks and proprietary trading firms to increase the daily volumes of traded instruments associated with often complex settlement cycles could grow over time as the EU’s CSD industry consolidates around a smaller number of centralised, member state-specific hubs.

This report examines the short-to-medium-term impact of CSDR on both the European CSD industry, as well as on the buyside and sellside financial markets and services firms – and their associated banking and brokerage counterparties – affected by the regulation. The report explores the implications of CSDR’s revised end-investor and regulatory reporting structures for all entities required to provide consumers of the data with standardised documentation related to the handling of settlement fails and their associated risks as well as around the concept of internalised settlement reporting as it is enshrined in CSDR.

Published on: 15 May, 2019

Adaptation to the Central Securities Depositories Regulation – Table of Contents

  • 1.0 Electronic Settlement in Europe
    • 1.1 The Importance of a Common Framework for Central Securities Depositories
    • 1.2 The UK, the Central Securities Depositories Regulation and BREXIT
    • 1.3 Extraterritorial Reach
    • 1.4 Participants’ Obligation to Reconcile Central Securities Depositories Data on a Daily Basis
    • 1.5 Account Segregation
  • 2.0 Managing the Risk of Settlement Fails
    • 2.1 Communication of Allocation from Clients
    • 2.2 Managing Failed Settlements
    • 2.3 Mandatory Buy-ins
    • 2.4 Impact on the Buyside
    • 2.5 The Central Securities Depository Regulation’s Impact on Other Processes
  • 3.0 Internalised Settlements
  • 4.0 Technology Support
  • 5.0 Appendices
    • 5.1 Glossary of Terms
    • 5.2 Table of Figures