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31/05/2011

Perspectives on CSD regulation

Global Custodian TV talks to SGSS

Global Custodian TV recently interviewed Eric de Nexon, Head of Strategy for Market Infrastructures at SGSS, about regulations for CSDs (Central Securities Depositories).

CSD regulation is one of the first regulatory initiatives from the European Commission that aim at regulating post-trading infrastructures. The regulation for CSDs intends to define the nature and role of a CSD at the European level, the services it is allowed to provide and its regulatory, prudential and supervisory framework. The main issue with the current proposal made by the European Commission is the level of service that it will be authorised to provide. Intermediaries are in favour of a very restrictive approach (i.e. a notary function and central settlement only), whereas the European Commission leans towards the inclusion of multiple banking services. In the latter case, CSDs are thus positioned as direct competitors to their participants rather than as pure systemic infrastructure. The final content of the regulation could significantly reshape the future post-trading landscape. 

http://bcove.me/uxcabwkjClick here to view the video interview to learn more about the issues that are arising around CSD regulation and the move towards harmonisation.