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HM Treasury has published a draft of the Central Securities Depositories (Amendment) (EU Exit) Regulations 2018, along with explanatory information. The draft Regulations:
The draft Regulations are primarily relevant for CSDs operating in the U.K. at the point of exit and CSDs that are currently providing services relating to the U.K. as defined in the CSDR. The draft Regulations are also relevant for end-users of CSD services, market infrastructures with links to U.K. CSDs and firms that undertake settlement internalization. CSDs that also provide settlement services will also find relevant the U.K. government's announcement in July 2018 that it proposes to legislate to ensure the continuation, post-Brexit, of U.K. settlement finality protections currently provided under the Settlement Finality Directive.
In addition, various of the access provisions (concerning access rights between issuers and CSDs or between CSDs and CCPs) have been expanded so as apparently to create new rights on third country issuers and CCPs to access U.K. CSDs, which are not found in CSDR.
HM Treasury intends to formally lay the Regulations before Parliament before exit day. The draft Regulations will enter into force partly on the day after the day on which they are made, with the remainder of the Regulations entering into force on exit day.
Separately, the BoE and the U.K. Prudential Regulation Authority (as appropriate and in consultation with the U.K. Financial Conduct Authority) will update the relevant binding technical standards to align them with the provisions of the draft Regulations. The BoE intends to consult on the changes in autumn 2018.
View the draft Regulations.
View the explanatory information.
View details of the July 2018 announcement of the proposals on settlement finality protections.