16 July 2021
The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, has today published its CSDR Report on the provision of banking-type ancillary services by central securities depositories (CSDs).
The report contains suggestions to enhance the authorisation process for CSDs to provide banking-type ancillary services themselves. More importantly, it also includes several proposals to facilitate the provision of banking-type ancillary services by non-banking CSDs; in particular to enable them to offer settlement services in foreign currencies.
ESMA’s recommendations will inform the European Commission’s ongoing CSDR Targeted Review, which has identified facilitating the provision of banking-type ancillary services as a key policy priority.
The Commission is expected to prepare a legislative proposal by the end of 2021.