Central securities depositary

The Jolly Contrarian’s Glossary The snippy guide to financial services lingo.™ Go Premium Index — Click the ᐅ to expand: Glossary Comments? Questions? Suggestions? Requests? Insults? We’d love to 📧 hear from you. Sign up for our newsletter.

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.