Book-entry form
- Arrange for securities to be in book-entry form
Retained EU Law
2014
United Kingdom
Regulation (EU) No 909/2014 of the European Parliament and of the Council of 23 July 2014 on improving securities settlement in the European Union and on central securities depositories and amending Directives 98/26/EC and 2014/65/EU and Regulation (EU) No 236/2012 (Text with EEA relevance)
At a glance
What's here
38 compliance obligations
What this Act requires
Sections that create concrete duties on businesses or carry penalties. Procedural and definitional sections are folded into the “Browse other sections” expander at the bottom of each group. Click any section title to read the source text on legislation.gov.uk.
Measures to prevent settlement fails
- Limit settlement fails by making arrangements with professional clients
Measures to address settlement fails
- Pay cash penalties and reimburse buy-in costs for settlement fails
Exchange of information
- Do not misuse confidential information received under securities settlement rules
Authorisation of a CSD
- You must obtain authorisation before operating as a central securities depository
Withdrawal of authorisation
- Establish procedures for orderly transfer of client assets if authorisation is withdrawn
Review and evaluation
- Submit a recovery plan and take corrective actions when required by the regulator
General provisions
- Maintain robust governance arrangements and internal controls
Senior management, management body and shareholders
- Report ownership and get approval for control changes
User committee
- Establish and operate user committees for each securities settlement system
Record keeping
- Keep all records on services and activities for 10 years
Outsourcing
- Maintain full responsibility when outsourcing and comply with conditions
General provisions
- Set clear goals and objectives; have transparent complaint rules
Requirements for participation
- Ensure fair and open access to your securities settlement system
Transparency
- Publish transparent pricing and fee information for core services
General provisions
- CSDs must have rules and controls to safeguard securities and settlement
Integrity of the issue
- CSD must reconcile securities daily and maintain issue integrity
Protection of securities of participants and those of their clients
- Offer clients choice of segregation options and disclose costs and risks
Settlement finality
- Ensure settlement finality and timely settlement of securities and cash
Cash settlement
- Settle cash payments properly and inform clients of risks
Participant default rules and procedures
- Have clear default rules and procedures for your securities settlement system
General requirements
- Adopt a sound risk-management framework for all risks including fraud and negligence
Legal risks
- Ensure clear, enforceable rules and mitigate cross‑jurisdiction legal risks
General business risk
- Have robust management and IT systems to manage general business risk
Operational risks
- Manage operational risks, IT security and business continuity
Investment policy
- Safeguard financial assets with approved institutions
Capital requirements
- Maintain sufficient capital and a capital-raising plan
CSD links
- Identify, assess, monitor and manage risks from CSD links
Freedom to issue in a CSD or third-country CSD
- CSDs must respond to issuer requests within three months and treat them fairly
Standard link access
- CSDs have a right to set up a standard link with another CSD after notifying them
Customised link access
- Do not reject customised link requests except on risk grounds
Procedure for CSD links
- Respond promptly to CSD access requests and provide reasons for refusal
Access between a CSD or third-country CSD and another market infrastructure
- Provide non-discriminatory transaction feeds and access to securities settlement systems
Authorisation and designation to provide banking-type ancillary services
- Do not provide banking-type ancillary services without additional authorisation
Extension of the banking-type ancillary services
- CSDs must apply for extension of banking-type ancillary services
Withdrawal of authorisation
- Contingency plan for client asset transfer on authorisation withdrawal
Prudential requirements applicable to credit institutions or CSDs authorised to provide banking-type ancillary services
- Manage credit and liquidity risks when providing banking-type ancillary services
Supervision of designated credit institutions and CSDs authorised to provide banking-type ancillary services
- CSDs must obtain information from designated credit institutions and report breaches
Browse 38 other sections — procedural / definitional / commencement
Subject matter and scope
Definitions
Enforcement
Intended settlement date
Enforcement
Settlement internalisers
Competent authority
Designation of the competent authority
Relevant authorities
Cooperation between authorities
Emergency situations
Procedure for granting authorisation
Effects of the authorisation
Extension and outsourcing of activities and services
CSD register
Freedom to provide services in another Member State
Cooperation between authorities of the home Member State and of the host Member State and peer review
Third countries
Services provided by parties other than CSDs
Communication procedures with participants and other market infrastructures
Procedure for granting and refusing authorisation to provide banking-type ancillary services
CSD register
Administrative sanctions and other measures
Publication of decisions
Sanctions for infringements
Effective application of sanctions
Reporting of infringements
Right of appeal
Regulations
Committee procedure
Transitional provisions
Amendments to Directive 98/26/EC
Amendments to Directive 2014/65/EU
Amendment to Regulation (EU) No 236/2012
Application of the UK law on markets in financial instruments and Regulation (EU) No 600/2014
Reports
Review
Entry into force and application
Explore more
Browse legislation
Find other UK business legislation with related guidance.