On December 18th, 2019, the Central Depository obtained the authorization according to EU Regulation 909/2014.
The CSDR implementation at Central Depository will be done in three stages:
1. Availability of a new securities account system – entering into force on January 6, 2020:
1a. Individual accounts – account opened in the name of the securities’ beneficial owner
1b. Global accounts – account in which are registered the securities belonging to different clients
1c. Omnibus individualized account – global account in which are registered the securities for a specific client of a participant
2. Implementation of technical processes required for the settlement discipline - estimated to go-live May 2020:
2a. Set up tolerance levels:
i. 2 EUR for settlement value up to EUR 100.000
ii. 25 EUR for settlement value exceeding EUR 100.000
2b. New matching fields such as: common reference of the counterparties
2c. Hold/Release mechanism and Linkages for RON transactions;
2d. Bilateral cancellation by participants;
2e. Gross settlement in RON to be allowed throughout the operation day.
3. Implementation of the settlement discipline according to CSDR - estimated to go-live November 2020:
3a. Recycle settlement instructions
3b. Possibility to send settlement instructions after the initial settlement date
3c. Implement measures to address settlement fails - apply cash penalty mechanism to participants that trigger fails at initial settlement date and new buy-in mechanism
3d. Implement new principles regarding guarantee fund and settlement limits
Impact on investors: Central Depository amended its Code of Rules in order to be compliant with the EU CSDR