Brussels, 23/07/2014 (Agence Europe) - On Wednesday 23 July, the EU Council of Ministers adopted a regulation introducing the requirement to register beforehand any security transaction on regulated platforms with one of the two dozen or so central securities depositories (CSD) in the EU, such as Clearstream Banking Luxembourg or Euroclear Bank (see EUROPE 11062).
The delivery deadlines for the securities have been harmonised at no more than 2 working days after the transaction and the rules (inspired by global standards) will allow management of the risks inherent in operations and services provided by CSDs. In return, CSDs will receive a “passport” that enables them to operate anywhere in the EU. The regulation needed to be in place before the European Central Bank begins its “Target 2 securities” single clearing/delivery platform in the eurozone in 2015.
In 2010, securities clearing houses cleared transactions totalling around €920 billion and held some €39 billion securities in that year, says the Council of Ministers in a press release. (MB)