The Central Depository Delays CSDR Implementation

The Central Depository AD (CDAD) has provided the Association of Banks in Bulgaria some preliminary details with regards to the implementation of CSDR requirements related to the settlement discipline:

• The CDAD has drafted an update to its Rules to ensure compliance with Commission Delegated Regulation (EU) 2018/1229 of 25 May 2018 and Commission Delegated Regulation (EU) 2017/389 of 11 November 2016. The updated CDAD Rules have been submitted to the Financial Supervision Commission (FSC) for review and approval.
• Among others, CDAD plans to change Article 30, Para. 1 of its Rules related to cash penalties. Cash penalties would be collected and distributed with the last processing batch on a daily basis.
• The CDAD has also advised that no MT537 reporting would be introduced at this stage; instead, the cash penalties information would be shared with the CSD members via the existing daily files in .out format.
• The CDAD would further report settlement fails to the competent authority and provide public disclosure on such fails via its website, in accordance with Art. 14 and Art. 15 of Commission Delegated Regulation (EU) 2018/1229 of 25 May 2018. The above reporting is to be regulated via an amendment of the Ordinance 8 of 03.09.2020.

Impact on investors: CSDR functionalities related to settlement discipline will be implemented by the Central Depository at a later stage.