EBA publishes final draft standards on thresholds and risk management for central securities depositories

The European Banking Authority (EBA) has published its final draft Regulatory Technical Standards (RTS) establishing the threshold levels at which non-banking central securities depositories (CSDs), or designating CSDs, may use banking CSDs or credit institutions for cash settlement without requiring additional authorisation.

Key features of the RTS include:

• Threshold levels: the minimum threshold is set at EUR 3.75 billion and 1.5% of annual settlement volume, while the maximum threshold is EUR 6.25 billion and 2.5% of annual settlement volume.
• Dynamic thresholds: these adjust according to the risk profile of both the designating CSD and the designated credit institution. As activity levels increase, prudential and risk management requirements also increase.
• Risk management and prudential measures: these are proportionate to the threshold levels.

The standards are based on Article 54(9) of Regulation (EU) No 909/2014 (CSDR), which mandates the EBA to develop draft RTS to determine the threshold and associated risk management requirements to mitigate risks related to the designation of credit institutions.

The final draft RTS document is available in PDF format and can be accessed via the official EBA publication link.