Euroclear’s Brussels-based international central securities depository (ICSD) has obtained a crucial licence to operate under the Central Securities Depositories Regulation (CSDR).
It also marks the first ICSD to become licensed under the regulation, which aims to increase the safety and efficiency of securities settlement infrastructures in Europe.
European CSDs are required to apply for a license, which sets out a host of performance and operational criteria they must fulfil, such as enhanced capital and transparency requirements.
The regulation also sets out standards to increase securities settlement efficiencies, harmonise the settlement cycle, and introduces a penalty regime for failed trades.
Euroclear has now been granted six licenses for its various CSDs in Belgium, Finland, France, the Netherlands and Sweden.
“This has been a significant undertaking and a lot of hard work has gone into this achievement. Receiving this licence is testament to our continuous investments in making Euroclear Bank a safe, secure and efficient infrastructure for our clients and the financial market ecosystem as a whole,” said Valerie Urbain, CEO, Euroclear Bank.
Last month, Euroclear’s ICSD announced its intent to join the pan-European securities settlement platform TARGET2 Securities (T2S). By joining the platform, Euroclear aims to create a single pool of collateral liquidity across multiple currencies and market jurisdictions.