CSDR Refit: Provisional agreement between the Council and the Parliament


The EU Council announced on 27 June 2023 that a provisional agreement had been reached between the Parliament and the Council on the revision of the Central Securities Depositories Regulation.

While the agreement still needs to be formally ratified, its broad outlines are already known, in particular those relating to the key measure of settlement disciplines: mandatory buy-in or MBI.

With this agreement, it seems that this vision of the mandatory buy-in will never see the light of day. Indeed, the new version may target types of financial instruments and / or types of transactions among those eligible for the MBI. And, above all, the Commission (EC) will only be able to open discussions on the merits of implementing the MBI if the system of penalties is not sufficiently effective and if the level of fails can impact the financial stability of the Union (the final text only takes up two of the conditions proposed by the EC and makes them cumulative). Finally, the Commission will have to have reviewed the penalty system in advance and first the penalty rates.

Other topics covered by CSDR Refit are the passport regime, the cooperation between regulators and banking-type ancillary services.