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What’s next? In December 2014, competent authorities will no- tify existing CSDs to ESMA (Article 69).

On 18 December 2013, the European Parliament and the Council reached an agreement on regula- tory safeguards and structure for central securities depositories (CSD). The objective was to increase stability, efficiency and safety of settlement and CSDs within the EU. On 26 February 2014, the Permanent Representative Committee, on behalf of the Council of the Europe- an Union, approved the agreement reached with the European Parliament on the new rules on Central Securities Depositories. ESMA published a discussion paper on 20 March 2014 regarding the CSD Regulation in order to look for public views on technical standards on settle- ment discipline, CSD registration and requirements. On 28 August 2014, Regulation (EU) no. 909/2014 has been formally published in the OJEU. What’s in there? On 17 September 2014, Regulation (EU) no. 909/2014 of the European Parliament and of the Council of 23 July 2014 on improving securities settlement in the European Union and on central securities depositories and amending Directives 98/26/EC and 2014/65/EU and Regulation (EU) no. 236/2012 entered into force. The new Regulation aims to secure and facilitate cross-border transactions within Europe. The safety of CSDs is enhanced with the new Regulation, which introduces a common authorization, supervision and regulatory framework for CSDs (e.g. annual review of the CSDs’ processes by the competent authority). Thus, the CSDR introduces an obligation of demate- rialization and immobilization of transferable secu- rities before trading them on regulated venues. The Regulation also harmonizes the settlement period in Europe (set at a maximum of two days after the trad- ing day: T+2) and implements settlement discipline measures as well as a mandatory buy-in regime: the CSDR imposes a mandatory buy-in process of trades that fail to settle. In the long term, an increase in the competition be- tween CSDs is expected as well as a decrease in the settlement costs for investors within Europe. The Regulation also introduces several obligations impacting market operators directly. On 17 April, the European Parliament adopted the provisional text of the Regulation on CSDs. On 23 July 2014, the CSD Regulation has been adopted by the Council of the EU.

in respect of Central Counterparties (CCPs) set out ESMA’s view of how EU law should be applied in a particular area and what are the appropriate supervisory practices within the European System of Financial Supervision. The Guidelines and Recommendations Final Report dated 5 August 2014 (ESMA/2014/1009) discusses the rationale for issuing these Guidelines and Recommendations regarding the implementation of the PFMIs in respect of CCPs. It includes Guidelines and Recommen- dations regarding the implementation of the PFMIs by competent authorities as part of the exercise of their duties resulting from EMIR for the authorisation and supervision of CCPs. What’s in there? On 4 September 2014, ESMA published offi- cial translations of these Guidelines and Rec- ommendations. They are now available in the following languages:

On 1 January 2015, the T+2 settlement date obli- gation will take effect.

The requirement for mandatory dematerialization is to be applied as from 1 January 2015 for new issues and as from 1 January 2020 for all trans- ferable securities. Regulation (EU) 909/2014 will take effect on vari- ous dates in January 2015 and will be applicable to all transferable securities as from January 2025. At the end of 2015, the Implementing Technical Standards, Regulatory Technical Standards (RTS) and Delegated Acts will enter into force. The CSD Regulation will complete the regulatory framework for securities market infrastructures (along with MIFID and EMIR). The Target 2 Securities project, which will start operationally in 2015, has consistent objectives with the CSD Regulation: T2S harmonizing the op- erational aspect of securities settlement alongside with CSDR harmonizing the legal aspect. EMIR - Official translations of the Guidelines and Recommendations regarding CPSS- IOSCO Principles for FMIs Background In 2012, international regulators represented in CPSS-IOSCO (Committee on Payment and Settle- ment Systems and the Board of the International Or- ganization of Securities Commissions) issued a set of wide-ranging governance and operational Prin- ciples for Financial Market Infrastructures (PFMIs). The Guidelines and Recommendations regard- ing the implementation of the CPSS-IOSCO Principles for Financial Market Infrastructures THE REGULATION IS AVAILABLE HERE.

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These Guidelines and Recommendations will become applicable as of 4 November 2014.

Competent authorities must notify ESMA whether they comply or intend to comply with these Guidelines and Recommendations, in- cluding a justification of the reasons for any non-compliance, before these Guidelines and Recommendations become effective. ESMA’S OFFICIAL TRANSLATIONS OF THE GUIDELINES AND RECOMMENDATIONS ARE AVAILABLE HERE.

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