EBA publishes final report on amendments to prudential standards for central securities depositories

The European Banking Authority (EBA) has published a final report proposing draft amendments to the Regulatory Technical Standards (RTS) on prudential requirements for central securities depositories (CSDs) and designated credit institutions offering banking-type ancillary services.

The amendments respond to the changes introduced by the Central Securities Depositories Regulation (CSDR) Refit, which allows banking CSDs to provide banking-type ancillary services, such as payment services involving cash and foreign exchange transactions, to other CSDs.

The policy aims to increase access to foreign currency for non-banking CSDs and improve settlement efficiency across Europe. The updated RTS aim to prevent increased interconnectedness between CSDs from raising systemic risk, focusing on the impact on the risk profile of banking CSDs and the notification requirements for supervisors.

The amendments also reflect recent updates to the Capital Requirements Regulation and align references with the amended CSDR text where relevant.

The draft RTS are developed under Article 59(5) of CSDR, which requires the EBA to specify details for monitoring, measuring, managing, reporting, and disclosing credit and liquidity risks, including intra-day risks.

CSDs providing banking-type ancillary services must be authorized to offer activities such as cash accounts, deposits, and payment services involving cash and foreign exchange transactions.

More information is available on the official EBA website.