ESMA launches CSDR consultation as blockchain platform emerges

The European Securities and Markets Authority (ESMA) has launched a consultation on participant default rules and procedures under Central Securities Depositories Regulation (CSDR)

The eventual guidelines aim to provide guidance on the necessary steps that a CSD should set up and follow in the event of a default.

Deadline for responses is June 30. ESMA has also revealed that it aims to have the guidelines finalised by Q4 2016.

The news comes alongside the launch of technology providers SETL’s OpenCSD platform.

The new platform, powered by blockchain technology, acts as a registry service for payments, settlement, clearing of cash and other financial instruments.

The platform’s launch has also seen it become the world’s first financial-grade blockchain product aimed at complying with current and forthcoming regulations including the CSDR.

Proposed by the EU, CSDR is regulation aimed at harmonising the authorisation and supervision of EU CSD’s.

Initially coming into force in September 2014, many of the requirements indicated are yet to be put into place.

In June last year, ESMA also launched a consultation over the controversial buy-in rule set out in the CSDR.