Deutsche Boerse Group’s post-trade services provider Clearstream has obtained a licence under the Central Securities Depositories Regulation (CSDR) in Germany.
European central securities depositories (CSDs) are required to apply for a license under the new regulation, which sets out a host of performance and operational criteria they must fulfil, such as enhanced capital and transparency requirements.
The rules also establishes standards to increase securities settlement efficiencies, harmonise the settlement cycle, and introduces a penalty regime for failed trades.
Clearstream’s licence was granted by the German Federal Financial Services Authority BaFin and is effective immediately.
“Receiving this licence is an important achievement; it is proof of our continuous efforts to ensure that we are in the best position to support the safety and stability of financial markets and offer services aligned with European standards to all market participants,” said Mathias Papenfuss, head of regulatory implementation at Clearstream.
The key objectives of the CSDR are to increase the safety and efficiency of securities settlement and settlement infrastructures in the European Union and to establish an enhanced level playing field among CSDs.
For the CSDs themselves, it seeks to create a harmonised set of rules for authorisation, operation and governance, as well as for the provision of services.
Clearstream is still awaiting confirmation of its CSDR licence in Luxembourg, due to IT changes taking place throughout 2020. A spokesperson confirmed that Clearstream Banking formally has until August 2020 to resubmit its final application files to the regulator and is in close alignment with the Commission de Surveillance du Secteur Financier (CSSF)
Continental rival Euroclear has now been granted six licenses for its various CSDs in Belgium, Finland, France, the Netherlands and Sweden, along with its international central securities depository (ICSD). The latter was approved in December 2019.