Clearstream’s international central securities depository (ICSD) business has obtained a license under CSDR, representing a key step for the organisation to achieve full compliance under the regulation.
The ICSD is third Clearstream CSD to receive licenses under CSDR, following authorisation of its German and Luxembourg-based businesses.
Under the regulation, Europe’s 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.
“CSDR is a key pillar of the EU’s post-trade regulation. By requiring CSD services to be provided by trusted, licensed infrastructures set up according to stringent and transparent rules, CSDR aims to create a level playing field and promote market stability and integrity,” said Stephan Leithner, chairman of Clearstream and member of the executive board of Deutsche Boerse.
“These goals align perfectly with Clearstream’s mission of providing a safe, efficient and trusted post-trade ecosystem for all market participants.”
The licences were granted by the Luxembourg Commission de Surveillance du Secteur Financier (CSSF) and include core and non-banking type ancillary services, banking services and an interoperable link.
CSDR provides a set of high and consistent standards across compliant CSDs, providing assurance from the regulators to investors that stringent measures are in place to ensure the security of their assets and the efficiency of transactions. As such, the new regulatory framework aims to bring risk and cost reduction benefits to financial markets as a whole.
In December 2019, Euroclear was the first to receive a CSDR license for its ICSD business, and has since received regulatory authorisation for all of its CSDs across Europe and the UK.