GERMANY: BaFin to Implement the Central Securities Depositories Regulation ( CSDR )

Friday April 6 2018

On 5^th  April 2018, the Federal Financial Supervisory Authority (BaFin) announced that it will introduce the ESMA Central Securities Depositories Regulation ( CSDR ) which will govern the authorisation of CSDs, as well as requirements for the exercise of services and the on-going supervision of these financial market infrastructures.

It will therefore change the supervisory activities of BaFin and also various processes of the CSD itself. In late March ESMA published Guidelines which set out the calculation methods for determining which authorities outside EU Member States are to be included in the authorization procedure and the ongoing supervision of a CSD.

The following Articles outline these requirements:

• Article 12 CSDR and the corresponding Delegated Regulation. It lays down the procedure for calculating the main currencies for determining the authorities concerned. These should be included in both the authorization procedure and the annual review and evaluation.
• Article 24 CSDR and another Delegated Regulation . Accordingly, the states in which the CSD has acquired material importance for the operation of the securities markets and investor protection must be determined. With their supervisory authorities, the competent authority of the country of domicile should cooperate closely in the exercise of supervisory tasks. They must also be included in the authorization procedure for providing banking-type ancillary services

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