Publication of 3rd ESMA report on CSDR implementation
On 16 July 2021, the European Securities and Markets Authority (ESMA) published its CSDR report on the provision of banking-type ancillary services by central securities depositories (CSDs).
The report contains proposals for improving the CSD authorisation process to provide banking-type ancillary services by themselves. More importantly, it also includes several proposals to facilitate the provision of banking-type ancillary services by non-bank CSDs, particularly to enable them to offer foreign currency settlement services. ESMA’s recommendations will inform the European Commission’s ongoing review of CSDRs, which had identified the facilitation of delivery of banking-type ancillary services as a policy priority. The Commission is expected to prepare a legislative proposal by the end of 2021.