The Central Securities Depositories Regulation (CSDR) is a European Union Regulation (EU) No 909/2014, designed to introduce harmonised rules across all Central Securities Depositories (CSDs) within the European Economic Area (EEA) and to complement the Target2Securities (T2S) project. CSDR entered into force in 2014 and the various requirements have been staggered, with implementations to date including the shortening of settlement cycles and internalised settlement reporting.
The current regulatory focus of CSDR is on the new Settlement Discipline Regime (SDR), which came into force on 1 February, 2022, and which seeks to improve the safety and efficiency of settlement in the EEA by introducing measures focused on preventing settlement fails (e.g. timely allocations, partial settlements, continuous real time matching and Real Time Gross Settlement (RTGS)); and on addressing settlement fails (e.g. cash penalties). While mandatory buy-ins are also provided as a measure to address settlement fails, they did not apply from 1 February 2022, and therefore are not covered in this webpage and FAQs (see below).
The UK Government has not adopted the SDR.