Adaptation to the Central Securities Depositories Regulation

The eventual full implementation of the EU’s CSDR across the entirety of Europe means that, in time, the continent’s CSD industry will likely adopt a more uniform, single market-friendly structure.

GreySpark Partners believes that the ability of asset management firms, hedge funds, investment banks and proprietary trading firms to increase the daily volumes of traded instruments associated with often complex settlement cycles could grow over time as the EU’s CSD industry consolidates around a smaller number of centralised, member state-specific hubs.

This report examines the short-to-medium-term impact of CSDR on both the European CSD industry, as well as on the buyside and sellside financial markets and services firms – and their associated banking and brokerage counterparties – affected by the regulation. The report explores the implications of CSDR’s revised end-investor and regulatory reporting structures for all entities required to provide consumers of the data with standardised documentation related to the handling of settlement fails and their associated risks as well as around the concept of internalised settlement reporting as it is enshrined in CSDR.