Last update: 4 May 2020

Authorisation procedure for CSDs

Summary

    Point (1) of Article 2(1) of Regulation (EU) No 909/2014 of 23 July 2014 on improving securities settlement in the European Union and on central securities depositories (CSDR) defines a CSD as “a legal person that operates a securities settlement system referred to in point (3) of Section A of the Annex and provides at least one other core service listed in Section A of the Annex”, notably:

    1. Initial recording of securities in a book-entry system (“notary service”);
    2. Providing and maintaining securities accounts at the top tier level (“central maintenance service”).

    In order to be authorised as CSD, an applicant CSD needs to comply with the obligations laid down in the CSDR as well the obligations set out in the related regulatory technical standards (RTS) and implementing technical standards (ITS).

    Types of authorisation

    A CSD can apply to the CSSF for the following authorisations:

    • authorisation as CSD in accordance with the procedures laid down in Article 17 of the CSDR;
    • extension and outsourcing of activities and services in accordance with the procedures laid down in Article 19 of the CSDR;
    • provision of banking-type ancillary services in accordance with the procedures laid down in Article 55 of the CSDR; and
    • extension of the banking-type ancillary services in accordance with the procedures laid down in Article 56 of the CSDR.

    It should be noted that, for the provision of the banking-type ancillary services according to Article 54 of the CSDR, a CSD or a designated credit institution needs to be authorised as credit institution according to Article 8 of Directive 2013/36/EU of 26 June 2013 on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms (CRD IV).

    Information to be provided

    An application for authorisation needs to include all information necessary to enable the CSSF to verify whether the applicant CSD has established, at the time of the authorisation, all the necessary arrangements to comply with the CSDR and its related RTS and ITS.

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    Innovation, Payments, Market Infrastructures and Governance Department - Market Infrastructures Division