Compliance reporting

CSDR

The Central Securities Depositories Regulation (CSDR) is a European regulation that was adopted to standardise the rules for central securities depositories.

The aim of the regulation is to stabilise market infrastructures and markets in times of crisis. The CSDR affects both the central securities depositories (CSDs) themselves and the trading partners carrying out transactions involving CSDs.

The regulatory framework provides for the following:

EU-wide standardised authorisation and oversight rules for CSDs
Settlement periods lasting a maximum of two days
Disciplinary measures for late or failed settlements (penalties and mandatory third-party buy-ins)
Commitment to dematerialisation and immobilisation
Separation of securities accounts, mandatory daily reconciliation processes, book-entry form of securities, use of Legal Entity Identifier Codes.

The implementation of the CSD regulations has been underway since 2014 and is expected to continue until 2025. Due to a planned 12-month postponement, the regulations regarding settlement discipline will now only come into force in February 2022.

From then on, custodians will be obliged to process transactions faster and pass on penalties to their customers.

what this means for your reporting

The implementation of CSDR-compliant processes and IT structures requires close cooperation and a definition of market practices by all parties involved.

Above all, it is important to find solutions that help to process transactions promptly and to minimize fines and buy-in costs. In order to optimise transaction processing at an early stage and to ensure that the prescribed introduction period is adhered to, we recommend introducing the system as early as 2020/2021.

our solution: arep CSDR

the arep platform and our managed services already offer a completely integrated CSDR solution. arep CSDR enables custodians and trading partners to map and check all transactions and data flows from different perspectives.

Reporting of open, CSDR-relevant transactions to identify potential "settlement failures"
automatic distribution of transactions to trading partners
receipt of CSDR transactions (by asset managers) from custodian banks
flexible parameterisation of matching requirements
digitisation of data, increased data quality and automation of processes to meet deadlines
implementation of processes for reporting penalty payments
verification of penalty payments
implementation of processes to map buy-ins, including connection to the buy-in agent
Establishment of processes for reporting buy-ins and buy-in results
coordination of activities performed by the depositary and adoption of corresponding procedures

what’s special about the arep solution

Using a single integrated platform to collect all CSDR-related data, to calculate risks and costs and to create and distribute reports increases the efficiency of all processes.
The modular arep system can be used immediately. It is operated in our certified data center in Luxembourg and does not require any additional IT infrastructure thanks to the browser-based user interface and a central Oracle database.
Rapid implementation and a comprehensive support service ensure all regulatory and client-specific requirements are met.
Highly automated data management and report creation reduce the time and money you have to invest.
The web-based arep dashboard guarantees full transparency over the entire reporting process.
Throughout the reporting process you will have access to extensive support and consulting services.
By choosing our optional Business Service you could outsource the entire process to acarda.
Service Level Agreement: How our Software as a Service works can be configured according to your needs. You pay only for the service you use and on the basis of a contractual agreement.