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CSDR review: ESMA publishes letter to EU Commission

ESMA has published a letter to the EU Commission regarding its proposals for the Commission’s review of the Central Securities Depositories Regulation (CSDR). The letter from ESMA’s interim chair to the EU’s Commissioner for Financial Services, Financial Stability and Capital Markets Union is intended to highlight proposals in relation to the following topics:

• TARGET2-Securities (T2S), and in particular the settlement platform’s status and arrangements for supervision and oversight – amongst other points, the letter notes ESMA’s belief that it is no longer appropriate to completely exclude such a systemic settlement platform from CSDR’s scope;
• The third country central securities depositories (CSDs) recognition regime – the letter notes ESMA supports an enhanced regime featuring third country CSDs to notify ESMA regarding services provided in the EEA, as well as broadening the scope of the recognition regime to also cover the provision of EEA settlement services; and
• The frequency of ESMA reports on CSDR implementation to the Commission.

The letter also notes ESMA’s prior input to the review via reports on CSD cross border services and on internalised settlement, as well as its planned input via forthcoming reports on banking-type ancillary services and on CSDs’ technological innovations.