On December 8, the European Commission (the Commission) published a consultation paper on its review of the Central Securities Depositories Regulation (909/2014) (CSDR) (the Consultation Paper).

Under Article 75 of the CSDR, the Commission was required to review and prepare a report on the Regulation and its implementation by September 19, 2019. The report was to be submitted to the European Parliament and the Council of the European Union with proposed legislative changes. However, the Commission explains a comprehensive review of the CSDR is currently not possible as some requirements did not apply until the effectiveness of the relevant regulatory technical standards in March 2017. Additionally, some EU central securities depositories (CSDs) have only recently been authorized under the CSDR.

The purpose of the Consultation Paper is to acquire the opinions of stakeholders concerning the implementation of the CSDR to assist with the upcoming Commission report. The Commission will also include an assessment of the potential supervision by ESMA of third-country CSDs. The report will explore a wide range of specific areas and produce action points to ensure the fulfilment of the CSDR’s objectives. The Commission advises stakeholders to take into account recent developments, particularly the impact of the COVID-19 pandemic on markets when providing feedback.

The Commission intends to simplify the CSDR and lower costs incurred in cross-border transactions post-Brexit. Details of its intentions can be found in the Commission’s 2021 work program and its 2020 Capital Markets Union Action Plan, which has already been announced.

The Commission calls for a wide range of stakeholders to respond to the Consultation Paper.

The deadline for comments on the Consultation Paper is February 2, 2021. The Commission intends to use comments in preparation of its final report.

The Consultation Paper is available here.