Central securities depositary

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A central securities depository (CSD) holds financial instruments, and allows the electronic transfer of those instruments in “dematerialised” book-entry form. The CSD for the UK Euroclear UK and Ireland, which is supervised by The Bank of England.

Central Securities Depositories Regulation (CSDR) CSDR is EU legislation that aims to harmonise the authorisation and supervision of EU CSDs and certain settlement aspects, such as dematerialisation of financial instruments. CSDR introduces a mandatory buying-in and cash penalty securities settlement discipline to tackle failed settlement transactions. This is causing all kinds of excitement in the market at the moment.