The Central Securities Depositories Regulation (CSDR) forms part of wider EU regulatory reforms including EMIR and MiFID II. The aim is to harmonise certain aspects of the settlement cycle and settlement discipline and provide a set of common requirements for CSDs operating securities settlement systems across the EU.
CSDR plays a pivotal role in post trade harmonisation efforts in the EU as it will enhance the legal and operational conditions for cross border settlement. At the operational level of securities settlement, CSDR includes the provision of shorter settlement cycles, mandatory buy-ins, and cash penalties to prevent and address settlement failures. In order to comply with CSDR, SmartStream’s reconciliations and exceptions management solutions applies necessary measures to prevent breaks from occurring, as CDS participants must reconcile their records daily with the information received. SmartStream’s Reference Data Utility also offers a systematic internaliser registry service, which helps to fulfil reporting requirements.