Search Legislation

Advanced Search

Regulation (EU) No 909/2014 of the European Parliament and of the CouncilShow full title

Regulation (EU) No 909/2014 of the European Parliament and of the Council of 23 July 2014 on improving securities settlement in the European Union and on central securities depositories and amending Directives 98/26/EC and 2014/65/EU and Regulation (EU) No 236/2012 (Text with EEA relevance)

Help about what version

What Version

Help about advanced features

Advanced Features

Help about UK-EU Regulation

Legislation originating from the EU

When the UK left the EU, legislation.gov.uk published EU legislation that had been published by the EU up to IP completion day (31 December 2020 11.00 p.m.). On legislation.gov.uk, these items of legislation are kept up-to-date with any amendments made by the UK since then.

Close

This item of legislation originated from the EU

Legislation.gov.uk publishes the UK version. EUR-Lex publishes the EU version. The EU Exit Web Archive holds a snapshot of EUR-Lex’s version from IP completion day (31 December 2020 11.00 p.m.).

Changes to legislation:

Regulation (EU) No 909/2014 of the European Parliament and of the Council, TITLE III is up to date with all changes known to be in force on or before 18 July 2024. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. Help about Changes to Legislation

Close

Changes to Legislation

Revised legislation carried on this site may not be fully up to date. Changes and effects are recorded by our editorial team in lists which can be found in the ‘Changes to Legislation’ area. Where those effects have yet to be applied to the text of the legislation by the editorial team they are also listed alongside the legislation in the affected provisions. Use the ‘more’ link to open the changes and effects relevant to the provision you are viewing.

View outstanding changes

Changes and effects yet to be applied to Title III:

TITLE IIIU.K. CENTRAL SECURITIES DEPOSITORIES

CHAPTER I U.K. Authorisation and supervision of CSDs

Section 1 U.K. Authorities responsible for authorisation and supervision of CSDs

Article 10U.K.Competent authority

F1... A CSD shall be authorised and supervised by the competent authority F2....

Textual Amendments

F3Article 11U.K.Designation of the competent authority

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F4Article 12U.K.Relevant authorities

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

Article 13U.K.Exchange of information

F51.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2.Competent authorities F6... and other bodies or natural and legal persons receiving confidential information in the exercise of their duties under this Regulation shall use it only in the course of their duties.

Textual Amendments

F7Article 14U.K.Cooperation between authorities

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F8Article 15U.K.Emergency situations

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

Section 2 U.K. Conditions and procedures for authorisation of CSDs

Article 16U.K.Authorisation of a CSD

1.Any legal person that falls within the definition of CSD shall obtain an authorisation from the competent authority F9... before commencing its activities.

2.The authorisation shall specify the core services listed in Section A of the Annex and non-banking-type ancillary services permitted under Section B of the Annex, which the CSD is authorised to provide.

3.A CSD shall comply at all times with the conditions necessary for authorisation.

4.A CSD as well as its independent auditors, shall, without undue delay, inform the competent authority of any substantive changes affecting the compliance with the conditions for authorisation.

Textual Amendments

Article 17U.K.Procedure for granting authorisation

1.The applicant CSD shall submit an application for authorisation to [F10the] competent authority.

2.The application for authorisation shall be accompanied by all information necessary to enable the competent authority to satisfy itself that the applicant CSD has established, at the time of the authorisation, all the necessary arrangements to meet its obligations as laid down in this Regulation. The application for authorisation shall include a programme of operations setting out the types of business envisaged and the structural organisation of the CSD.

3.Within 30 working days from the receipt of the application, the competent authority shall assess whether the application is complete. If the application is not complete, the competent authority shall set a time limit by which the applicant CSD has to provide additional information. The competent authority shall inform the applicant CSD when the application is considered to be complete.

F114.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F115.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F116.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F117.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

8.Within six months from the submission of a complete application, the competent authority shall inform the applicant CSD in writing with a fully reasoned decision whether the authorisation has been granted or refused.

9.[F12The Bank of England may make] regulatory technical standards to specify the information that the applicant CSD is to provide to the competent authority in the application for authorisation.

F13...

F13...

10.[F14The Bank of England may make] implementing technical standards to establish standard forms, templates and procedures for the application for authorisation.

F15...

F15...

Textual Amendments

Article 18U.K.Effects of the authorisation

1.The activities of the authorised CSD shall be limited to the provision of services covered by its authorisation or by notification in accordance with Article 19(8).

[F162.Securities settlements systems governed by the law applicable within the United Kingdom or any part of the United Kingdom may be operated only by authorised CSDs, the Bank of England (or other public bodies charged with or intervening in the management of public debt in the United Kingdom) acting as a CSD and third-country CSDs that are recognised in accordance with Article 25.]

3.An authorised CSD may have a participation only in a legal person whose activities are limited to the provision of services listed in Sections A and B of the Annex, unless such a participation is approved by its competent authority on the basis that it does not significantly increase the risk profile of the CSD.

4.[F17The Bank of England may make] regulatory technical standards to specify the criteria to be taken into account by the [F18competent authority] to approve the participation of CSDs in legal persons other than those providing the services listed in Sections A and B of the Annex. Such criteria may include whether the services provided by that legal person are complementary to the services provided by a CSD, and the extent of the CSD’s exposure to liabilities arising from such participation.

F19...

F19...

Textual Amendments

Article 19U.K.Extension and outsourcing of activities and services

1.An authorised CSD shall submit an application for authorisation to the competent authority F20... where it wishes to outsource a core service to a third party under Article 30 or extend its activities to one or more of the following:

(a)additional core services listed in Section A of the Annex, not covered by the initial authorisation;

(b)ancillary services permitted under, but not explicitly listed in Section B of the Annex, not covered by the initial authorisation;

(c)the operation of another securities settlement system;

(d)the settlement of all or part of the cash leg of its securities settlement system in the books of another settlement agent;

(e)setting up an interoperable link, including those with third-country CSDs.

2.The granting of authorisation under paragraph 1 shall follow the procedure laid down in Article 17.

The competent authority shall inform the applicant CSD whether the authorisation has been granted or refused within three months of the submission of a complete application.

3.CSDs F21... that intend to establish an interoperable link shall submit an application for authorisation as required under point (e) of paragraph 1, to [F22the competent authority]. F23...

4.The [F24authority] referred to in paragraph 3 shall refuse to authorise a link only where such a CSD link would threaten the smooth and orderly functioning of the financial markets or cause systemic risk.

5.Interoperable links of CSDs that outsource some of their services related to those interoperable links to a public entity in accordance with Article 30(5) and CSD links that are not referred to in point (e) of paragraph 1 shall not be subject to authorisation under that point but shall be notified to the [F25competent authority] prior to their implementation by providing all relevant information that allows [F26the competent authority] to assess compliance with the requirements provided in Article 48.

6.A CSD F27... may maintain or establish a link with a third-country CSD in accordance with the conditions and procedures provided in this Article. Where links are established with a third-country CSD the information provided by the F28... CSD shall allow the competent authority to evaluate whether such links fulfil the requirements provided in Article 48 or the requirements that are equivalent to those provided in Article 48.

7.The competent authority F29... shall require [F30a CSD] to discontinue a CSD link that has been notified when such link does not fulfil the requirements provided for in Article 48 and thereby would threaten the smooth and orderly functioning of the financial markets or cause systemic risk. F31...

8.The additional ancillary services explicitly listed in Section B of the Annex shall not be subject to authorisation, but shall be notified to the competent authority prior to their provision.

Textual Amendments

Article 20U.K.Withdrawal of authorisation

1.Without prejudice to any remedial actions or measures under Title V, the competent authority F32... shall withdraw the authorisation in any of the following circumstances, where the CSD:

(a)has not made use of the authorisation during 12 months, expressly renounces the authorisation or has provided no services or performed no activity during the preceding six months;

(b)has obtained the authorisation by making false statements or by any other unlawful means;

(c)no longer complies with the conditions under which authorisation was granted and has not taken the remedial actions requested by the competent authority within a set time-frame;

(d)has seriously or systematically infringed the requirements laid down in this Regulation or, where applicable, [F33in the UK law on markets in financial instruments] or Regulation (EU) No 600/2014.

F342.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F343.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4.The competent authority may limit the withdrawal of authorisation to a particular service, activity, or financial instrument.

5.A CSD shall establish, implement and maintain adequate procedures ensuring the timely and orderly settlement and transfer of the assets of clients and participants to another CSD [F35or third-country CSD] in the event of a withdrawal of authorisation referred to in paragraph 1.

Textual Amendments

Article 21U.K.CSD register

F361.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F362.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3.The name of each CSD [F37or third-country CSD] operating in compliance with this Regulation and to which authorisation or recognition has been granted pursuant to Article 16, 19 or 25 shall be entered in a register specifying the services and, where applicable, classes of financial instruments for which the CSD [F37or third-country CSD] has been authorised. The register shall include F38... CSD links F39.... [F40The competent authority] shall make the register available on its dedicated website and keep it up to date.

Textual Amendments

Section 3 U.K. Supervision of CSDs

Article 22U.K.Review and evaluation

1.The competent authority shall, at least on an annual basis, review the arrangements, strategies, processes and mechanisms implemented by a CSD with respect to compliance with this Regulation and evaluate the risks to which the CSD is, or might be, exposed or which it creates for the smooth functioning of securities markets.

2.The competent authority shall require the CSD to submit to the competent authority an adequate recovery plan to ensure continuity of its critical operations.

3.The competent authority shall ensure that an adequate resolution plan is established and maintained for each CSD so as to ensure continuity of at least its core functions, having regard to the size, systemic importance, nature, scale and complexity of the activities of the CSD concerned and any relevant resolution plan established in accordance with [F41the Bank Recovery and Resolution (No.2) Order 2014].

4.The competent authority shall establish the frequency and depth of the review and evaluation referred to in paragraph 1 having regard to the size, systemic importance, nature, scale and complexity of the activities of the CSD concerned. The review and evaluation shall be updated at least on an annual basis.

5.The competent authority shall subject the CSD to on-site inspections.

F426.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F427.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F428.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9.The competent authority shall require a CSD that does not meet the requirements of this Regulation to take at an early stage the necessary actions or steps to address the situation.

10.[F43The Bank of England may make] regulatory technical standards to specify the following:

(a)the information that the CSD is to provide to the competent authority for the purposes of the review and evaluation referred to in paragraph 1;

F44(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F44(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F45...

11.[F46The Bank of England may make] implementing technical standards to determine standard forms, templates and procedures for the provision of information referred to in the first subparagraph of paragraph 10.

F47...

F47...

Textual Amendments

Section 4 U.K. Provision of services in another member state

F48Article 23U.K.Freedom to provide services in another Member State

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F49Article 24U.K.Cooperation between authorities of the home Member State and of the host Member State and peer review

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

Section 5 U.K. Relations with third countries

Article 25U.K.Third countries

1.Third-country CSDs may provide services referred to in the Annex within the [F50United Kingdom], including through setting up a branch.

[F512.Notwithstanding paragraph 1, a third-country CSD that intends to provide the core services referred to in points (1) and (2) of Section A of the Annex in relation to financial instruments constituted under the law applicable within the United Kingdom or any part of the United Kingdom or to set up a branch in the United Kingdom is subject to the procedure referred to in paragraphs 4 to 11 of this Article.]

3.A CSD F52... may maintain or establish a link with a third-country CSD in accordance with Article 48.

4.After consulting the authorities referred to in paragraph 5, [F53the competent authority] may recognise a third-country CSD that has applied for recognition to provide the services referred to in paragraph 2, where the following conditions are met:

(a)[F54the Treasury has made regulations] in accordance with paragraph 9;

(b)the third-country CSD is subject to effective authorisation, supervision and oversight or, if the securities settlement system is operated by a central bank, oversight, ensuring full compliance with the prudential requirements applicable in that third country;

(c)cooperation arrangements between [F53the competent authority] and the responsible authorities in that third country (‘responsible third-country authorities’) have been established pursuant to paragraph 10;

[F55(d)where relevant, the third-country CSD takes the necessary measures to allow its users to comply with the relevant law applicable within the United Kingdom or any part of the United Kingdom and the adequacy of those measures has been confirmed by the competent authority.]

5.When assessing whether the conditions referred to in paragraph 4 are met, [F56the competent authority] shall consult:

F57(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F57(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(c)the responsible third-country authorities entrusted with the authorisation, supervision and oversight of [F58third-country] CSDs.

6.The third-country CSD referred to in paragraph 2 shall submit its application for recognition to [F59the competent authority].

The [F60applicant third-country CSD] shall provide [F59the competent authority] with all information deemed to be necessary for its recognition. Within 30 working days from the receipt of the application, [F59the competent authority] shall assess whether the application is complete. If the application is not complete, [F59the competent authority] shall set a time limit by which the [F60applicant third-country CSD] has to provide additional information.

F61...

The recognition decision shall be based on the criteria laid down in paragraph 4.

Within six months from the submission of a complete application, [F59the competent authority] shall inform the [F60applicant third-country CSD] in writing with a fully reasoned decision whether the recognition has been granted or refused.

[F62Recognition under this Article must be granted only for services listed in the Annex and the decision granting recognition must specify the services which the third-country CSD is recognised to provide or perform.

The applicant third-country CSD must, without undue delay, notify the competent authority of any material changes affecting the condition for recognition in point (b) of paragraph 4.]

[F636A.A third-country CSD recognised under paragraph 4 must, without undue delay, notify the competent authority of any material changes affecting the condition for recognition in point (b) of paragraph 4.]

7.[F64Where the third-country CSD, duly recognised under paragraph 4, provides CSD services in the United Kingdom, the competent authority may request the responsible third country authorities to:]

(a)report periodically on the third-country CSD’s activities in [F65the United Kingdom], including for the purpose of collecting statistics;

(b)communicate, within an appropriate time-frame, the identity of the issuers and participants in the securities settlement systems operated by the third-country CSD which provides services in [F66the United Kingdom] and any other relevant information concerning the activities of that third-country CSD in [F67the United Kingdom].

8.[F68The competent authority] shall, after consulting the authorities referred to in paragraph 5, review the recognition of the third-country CSD in the event of extensions by [F69the third-country CSD] in the [F70United Kingdom] of its services under the procedure laid down in paragraphs 4, 5 and 6.

[F68The competent authority] shall withdraw the recognition of [F69the third-country CSD] where the conditions laid down in paragraph 4 are no longer met, or in the circumstances referred to in Article 20.

[F71The competent authority may—

(a)limit the withdrawal to a particular service; and

(b)direct that the withdrawal is to have effect subject to such transitional arrangements as the competent authority considers necessary or expedient.]

9.[F72The Treasury may by regulations specify a third country which, in the opinion of the Treasury, has legal and supervisory arrangements which ensure that third-country CSDs authorised in that third country comply with legally binding requirements which are in effect equivalent to the requirements laid down in this Regulation, that those third-country CSDs are subject to effective supervision, oversight and enforcement in that third country on an ongoing basis and that the legal framework of that third country provides for an effective equivalent system for the recognition of third-country CSDs authorised under third country legal regimes and CSDs authorised under the law applicable in the United Kingdom.]

In making the determination referred to in the first subparagraph, the [F73Treasury] may also consider whether the legal and supervisory arrangements of a third country reflect the internationally agreed CPSS-IOSCO standards, in so far as the latter do not conflict with the requirements laid down in this Regulation.

10.F74... [F75The competent authority] shall establish cooperation arrangements with the responsible third-country authorities whose legal and supervisory frameworks have been recognised as equivalent to this Regulation in accordance with paragraph 9. Such arrangements shall specify at least:

(a)the mechanism for the exchange of information between [F76the competent authority]F77... and the third-country responsible authorities, including access to all information regarding the [F78third-country] CSDs authorised in third countries that is requested by [F76the competent authority] and in particular access to information in the cases referred to in paragraph 7;

(b)the mechanism for prompt notification of [F79the competent authority] where a third-country responsible authority deems a [F80third-country] CSD that it is supervising to infringe the conditions of its authorisation or of other applicable law;

(c)the procedures concerning the coordination of supervisory activities including, where appropriate, on-site inspections.

Where a cooperation agreement provides for transfers of personal data by a [F81public authority of the United Kingdom], such transfers shall comply with the provisions of [F82data protection legislation]F83... .

11.Where a third-country CSD has been recognised, in accordance with paragraphs 4 to 8, it may provide services referred to in the Annex within the [F84United Kingdom], including by setting up a branch.

12.[F85The Bank of England may make] regulatory technical standards to specify the information that the [F86applicant third-country CSD] is to provide to [F87the competent authority] in its application for recognition under paragraph 6.

F88...

F88...

Textual Amendments

CHAPTER II U.K. Requirements for CSDs

Section 1 U.K. Organisational requirements

Article 26U.K.General provisions

1.A CSD shall have robust governance arrangements, which include a clear organisational structure with well-defined, transparent and consistent lines of responsibility, effective processes to identify, manage, monitor and report the risks to which it is or might be exposed, and adequate remuneration policies and internal control mechanisms, including sound administrative and accounting procedures.

2.A CSD shall adopt policies and procedures which are sufficiently effective so as to ensure compliance with this Regulation, including compliance of its managers and employees with all the provisions of this Regulation.

3.A CSD shall maintain and operate effective written organisational and administrative arrangements to identify and manage any potential conflicts of interest between itself, including its managers, employees, members of the management body or any person directly or indirectly linked to them, and its participants or their clients. It shall maintain and implement adequate resolution procedures where possible conflicts of interest occur.

4.A CSD shall make its governance arrangements and the rules governing its activity available to the public.

5.A CSD shall have appropriate procedures for its employees to report internally potential infringements of this Regulation through a specific channel.

6.A CSD shall be subject to regular and independent audits. The results of these audits shall be communicated to the management body and made available to the competent authority and, where appropriate taking into account potential conflicts of interest between the members of the user committee and the CSD, to the user committee.

7.Where a CSD is part of a group of undertakings including other CSDs [F89, third-country CSDs] or credit institutions referred to in Title IV, it shall adopt detailed policies and procedures specifying how the requirements laid down in this Article apply to the group and to the different entities in the group.

8.[F90The Bank of England may make] regulatory technical standards specifying at the CSD level and at the group level as referred to in paragraph 7:

(a)the monitoring tools for the risks of the CSDs referred to in paragraph 1;

(b)the responsibilities of the key personnel in respect of the risks of the CSDs referred to in paragraph 1;

(c)the potential conflicts of interest referred to in paragraph 3;

(d)the audit methods referred to in paragraph 6; and

(e)the circumstances in which it would be appropriate, taking into account potential conflicts of interest between the members of the user committee and the CSD, to share audit findings with the user committee in accordance with paragraph 6.

F91...

F91...

Textual Amendments

Article 27U.K.Senior management, management body and shareholders

1.The senior management of a CSD shall be of sufficiently good repute and experience so as to ensure the sound and prudent management of the CSD.

2.A CSD shall have a management body of which at least one third, but no less than two, of its members are independent.

3.The remuneration of the independent and other non-executive members of the management body shall not be linked to the business performance of the CSD.

4.The management body shall be composed of suitable members of sufficiently good repute with an appropriate mix of skills, experience and knowledge of the entity and of the market. The non-executive members of the management body shall decide on a target for the representation of the under-represented gender in the management body and prepare a policy on how to increase the number of the under-represented gender in order to meet that target. The target, policy and its implementation shall be made public.

5.A CSD shall clearly determine the role and responsibilities of the management body in accordance with the relevant [F92law applicable within the United Kingdom or of any part of the United Kingdom]. A CSD shall make the minutes of the meetings of the management body available to the competent authority and the auditor upon request.

6.The CSD’s shareholders and persons who are in a position to exercise, directly or indirectly, control over the management of the CSD shall be suitable to ensure the sound and prudent management of the CSD.

7.A CSD shall:

(a)provide the competent authority with, and make public, information regarding the ownership of the CSD, and in particular, the identity and scale of interests of any parties in a position to exercise control over the operation of the CSD;

(b)inform and seek approval from [F93the competent authority] of any decision to transfer ownership rights which give rise to a change in the identity of the persons exercising control over the operation of the CSD. After receiving approval from [F93the competent authority], the CSD shall make public the transfer of ownership rights.

Any natural or legal person shall inform without undue delay the CSD and its competent authority of a decision to acquire or dispose of its ownership rights that give rise to a change in the identity of the persons exercising control over the operation of the CSD.

8.Within 60 working days from the receipt of the information referred to in paragraph 7, the competent authority shall take a decision on the proposed changes in the control of the CSD. The competent authority shall refuse to approve proposed changes in the control of the CSD where there are objective and demonstrable grounds for believing that they would pose a threat to the sound and prudent management of the CSD or to the ability of the CSD to comply with this Regulation.

Textual Amendments

Article 28U.K.User committee

1.A CSD shall establish user committees for each securities settlement system it operates, which shall be composed of representatives of issuers and of participants in such securities settlement systems. The advice of the user committee shall be independent from any direct influence by the management of the CSD.

2.A CSD shall define in a non-discriminatory way the mandate for each established user committee, the governance arrangements necessary to ensure its independence and its operational procedures, as well as the admission criteria and the election mechanism for user committee members. The governance arrangements shall be publicly available and shall ensure that the user committee reports directly to the management body and holds regular meetings.

3.User committees shall advise the management body on key arrangements that impact on their members, including the criteria for accepting issuers or participants in their respective securities settlement systems and on service level.

4.User committees may submit a non-binding opinion to the management body containing detailed reasons regarding the pricing structures of the CSD.

5.Without prejudice to the right of [F94the competent authority] to be duly informed, the members of the user committees shall be bound by confidentiality. Where the chairman of a user committee determines that a member has an actual or a potential conflict of interest in relation to a particular matter, that member shall not be allowed to vote on that matter.

6.A CSD shall promptly inform the competent authority and the user committee of any decision in which the management body decides not to follow the advice of the user committee. The user committee may inform the competent authority of any areas in which it considers that the advice of the user committee has not been followed.

Textual Amendments

Article 29U.K.Record keeping

1.A CSD shall maintain, for a period of at least 10 years, all its records on the services and activities, including on the ancillary services referred to in Sections B and C of the Annex, so as to enable the competent authority to monitor the compliance with the requirements under this Regulation.

2.A CSD shall make the records referred to in paragraph 1 available upon request to the competent authority F95... and any other public authority which under [F96the law applicable within the United Kingdom or of any part of the United Kingdom] has a power to require access to such records for the purpose of fulfilling their mandate.

3.[F97The Bank of England may make] regulatory technical standards to specify the details of the records referred to in paragraph 1 to be retained for the purpose of monitoring the compliance of CSDs with the provisions of this Regulation.

F98...

F98...

4.[F99The Bank of England may make] implementing technical standards to establish the format of the records referred to in paragraph 1 to be retained for the purpose of monitoring the compliance of CSDs with the provisions of this Regulation.

F100...

F100...

Textual Amendments

Article 30U.K.Outsourcing

1.Where a CSD outsources services or activities to a third party, it shall remain fully responsible for discharging all of its obligations under this Regulation and shall comply at all times with the following conditions:

(a)outsourcing does not result in the delegation of its responsibility;

(b)the relationship and obligations of the CSD towards its participants or issuers are not altered;

(c)the conditions for the authorisation of the CSD do not effectively change;

(d)outsourcing does not prevent the exercise of supervisory and oversight functions, including on-site access to acquire any relevant information needed to fulfil those functions;

(e)outsourcing does not result in depriving the CSD of the systems and controls necessary to manage the risks it faces;

(f)the CSD retains the expertise and resources necessary for evaluating the quality of the services provided, the organisational and capital adequacy of the service provider, for supervising the outsourced services effectively and for managing the risks associated with the outsourcing on an ongoing basis;

(g)the CSD has direct access to the relevant information of the outsourced services;

(h)the service provider cooperates with the competent authority F101... in connection with the outsourced activities;

(i)the CSD ensures that the service provider meets the standards set down by the relevant data protection law which would apply if the service providers were established in the [F102United Kingdom]. The CSD is responsible for ensuring that those standards are set out in a contract between the parties and that those standards are maintained.

2.The CSD shall define in a written agreement its rights and obligations and those of the service provider. The outsourcing agreement shall allow the CSD to terminate the agreement.

3.A CSD and a service provider shall make available upon request to the competent authority F103... all information necessary to enable them to assess the compliance of the outsourced activities with the requirements of this Regulation.

4.The outsourcing of a core service shall be subject to authorisation under Article 19 by the competent authority.

5.Paragraphs 1 to 4 shall not apply where a CSD outsources some of its services or activities to a public entity and where that outsourcing is governed by a dedicated legal, regulatory and operational framework which has been jointly agreed and formalised by the public entity and the relevant CSD and agreed by the competent [F104authority] on the basis of the requirements established in this Regulation.

Textual Amendments

F105Article 31U.K.Services provided by parties other than CSDs

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

Section 2 U.K. Conduct of business rules

Article 32U.K.General provisions

1.A CSD shall have clearly defined goals and objectives that are achievable, such as in the areas of minimum service levels, risk-management expectations and business priorities.

2.A CSD shall have transparent rules for the handling of complaints.

Article 33U.K.Requirements for participation

1.For each securities settlement system it operates a CSD shall have publicly disclosed criteria for participation which allow fair and open access for all legal persons that intend to become participants. Such criteria shall be transparent, objective, and non-discriminatory so as to ensure fair and open access to the CSD with due regard to risks to financial stability and the orderliness of markets. Criteria that restrict access shall be permitted only to the extent that their objective is to justifiably control a specified risk for the CSD.

2.A CSD shall treat requests for access promptly by providing a response to such requests within one month at the latest and shall make the procedures for treating access requests publicly available.

3.A CSD shall deny access to a participant meeting the criteria referred to in paragraph 1 only where duly justified in writing and based on a comprehensive risk assessment.

In the event of a refusal, the requesting participant has the right to complain to the competent authority of the CSD that has refused access.

[F106The] competent authority shall duly examine the complaint by assessing the reasons for refusal and shall provide the requesting participant with a reasoned reply.

F107...

Where the refusal by the CSD to grant access to the requesting participant is deemed to be unjustified, the competent authority of the CSD that has refused access shall issue an order requiring that CSD to grant access to the requesting participant.

4.A CSD shall have objective and transparent procedures for the suspension and orderly exit of participants that no longer meet the criteria for participation referred to in paragraph 1.

5.[F108The Bank of England may make] regulatory technical standards to specify the risks to be taken into account by CSDs when carrying out a comprehensive risk assessment, and by [F109the competent authority] when assessing the reasons for refusal in accordance with paragraph 3 and the elements of the procedure referred to in paragraph 3.

F110...

F110...

6.[F111The Bank of England may make] implementing technical standards to establish standard forms and templates for the procedure referred to in paragraph 3.

F112...

F112...

Textual Amendments

Article 34U.K.Transparency

1.For each securities settlement system it operates, as well as for each of the other core services it performs, a CSD shall publicly disclose the prices and fees associated with the core services listed in Section A of the Annex that they provide. It shall disclose the prices and fees of each service and function provided separately, including discounts and rebates and the conditions to benefit from those reductions. It shall allow its clients separate access to the specific services provided.

2.A CSD shall publish its price list so as to facilitate the comparison of offers and to allow clients to anticipate the price they shall have to pay for the use of services.

3.A CSD shall be bound by its published pricing policy for its core services.

4.A CSD shall provide its clients with information that allows reconciling invoices with the published price lists.

5.A CSD shall disclose to all clients information that allows them to assess the risks associated with the services provided.

6.A CSD shall account separately for costs and revenues of the core services provided and shall disclose that information to the competent authority.

7.A CSD shall account for the cost and revenue of the ancillary services provided as a whole and shall disclose that information to the competent authority.

8.In order to ensure effective application of [F113United Kingdom] competition rules and enable the identification, inter alia, of cross-subsidisation of ancillary services by core services, a CSD shall maintain analytical accounting for its activities. Such analytical accounts shall at least separate the costs and revenues associated with each of its core services from those associated with ancillary services.

Textual Amendments

Article 35U.K.Communication procedures with participants and other market infrastructures

CSDs shall use in their communication procedures with participants of the securities settlement systems they operate, and with the market infrastructures they interface with international open communication procedures and standards for messaging and reference data in order to facilitate efficient recording, payment and settlement.

Section 3 U.K. Requirements for CSD services

Article 36U.K.General provisions

For each securities settlement system it operates a CSD shall have appropriate rules and procedures, including robust accounting practices and controls, to help ensure the integrity of securities issues, and reduce and manage the risks associated with the safekeeping and settlement of transactions in securities.

Article 37U.K.Integrity of the issue

1.A CSD shall take appropriate reconciliation measures to verify that the number of securities making up a securities issue or part of a securities issue submitted to the CSD is equal to the sum of securities recorded on the securities accounts of the participants of the securities settlement system operated by the CSD and, where relevant, on owner accounts maintained by the CSD. Such reconciliation measures shall be conducted at least daily.

2.Where appropriate and if other entities are involved in the reconciliation process for a certain securities issue, such as the issuer, registrars, issuance agents, transfer agents, common depositories, other CSDs [F114, third-country CSDs] or other entities, the CSD and any such entities shall organise adequate cooperation and information exchange measures with each other so that the integrity of the issue is maintained.

3.Securities overdrafts, debit balances or securities creation shall not be allowed in a securities settlement system operated by a CSD.

4.[F115The Bank of England may make] regulatory technical standards to specify the reconciliation measures a CSD is to take under paragraphs 1, 2 and 3.

F116...

F116...

Textual Amendments

Article 38U.K.Protection of securities of participants and those of their clients

1.For each securities settlement system it operates, a CSD shall keep records and accounts that shall enable it, at any time and without delay, to segregate in the accounts with the CSD, the securities of a participant from those of any other participant and, if applicable, from the CSD’s own assets.

2.A CSD shall keep records and accounts that enable any participant to segregate the securities of the participant from those of the participant’s clients.

3.A CSD shall keep records and accounts that enable any participant to hold in one securities account the securities that belong to different clients of that participant (‘omnibus client segregation’)

4.A CSD shall keep records and accounts that enable a participant to segregate the securities of any of the participant’s clients, if and as required by the participant (‘individual client segregation’).

5.A participant shall offer its clients at least the choice between omnibus client segregation and individual client segregation and inform them of the costs and risks associated with each option.

F117...

6.CSDs and their participants shall publicly disclose the levels of protection and the costs associated with the different levels of segregation that they provide and shall offer those services on reasonable commercial terms. Details of the different levels of segregation shall include a description of the main legal implications of the respective levels of segregation offered, including information on the insolvency law applicable in the relevant jurisdictions.

7.A CSD shall not use for any purpose securities that do not belong to it. A CSD may however use securities of a participant where it has obtained that participant’s prior express consent. The CSD shall require its participants to obtain any necessary prior consent from their clients.

Textual Amendments

Article 39U.K.Settlement finality

1.A CSD shall ensure that the securities settlement system it operates offers adequate protection to participants. [F118The competent authority] shall designate and notify the securities settlement systems operated by CSDs according to the procedures referred to in [F119regulation 4 of the Financial Markets and Insolvency (Settlement Finality) Regulations 1999].

2.A CSD shall ensure that each securities settlement system that it operates defines the moments of entry and of irrevocability of transfer orders in that securities settlement system in accordance with [F120regulation 20 of, and paragraph 5 of the Schedule to, the Financial Markets and Insolvency (Settlement Finality) Regulations 1999].

3.A CSD shall disclose the rules governing the finality of transfers of securities and cash in a securities settlement system.

4.Paragraphs 2 and 3 shall apply without prejudice to the provisions applicable to CSD links, and without prejudice to paragraph 8 of Article 48.

5.A CSD shall take all reasonable steps to ensure that, in accordance with the rules referred to in paragraph 3, finality of transfers of securities and cash referred to in paragraph 3 is achieved either in real time or intra-day and in any case no later than by the end of the business day of the actual settlement date.

6.Where the CSD offers the services referred to in Article 40(2), it shall ensure that the cash proceeds of securities settlements shall be available for recipients to use no later than by the end of the business day of the intended settlement date.

7.All securities transactions against cash between direct participants in a securities settlement system operated by a CSD and settled in that securities settlement system shall be settled on a DVP basis.

Textual Amendments

Article 40U.K.Cash settlement

1.For transactions denominated in the currency of the country where the settlement takes place, a CSD shall settle the cash payments of its securities settlement system through accounts opened with a central bank of issue of the relevant currency where practical and available.

2.Where it is not practical and available to settle in central bank accounts as provided in paragraph 1, a CSD may offer to settle the cash payments for all or part of its securities settlement systems through accounts opened with a credit institution or through its own accounts. If a CSD offers to settle in accounts opened with a credit institution or through its own accounts, it shall do so in accordance with the provisions of Title IV.

3.A CSD shall ensure that any information provided to market participants about the risks and costs associated with settlement in the accounts of credit institutions or through its own accounts is clear, fair and not misleading. A CSD shall make available sufficient information to clients or potential clients to allow them to identify and evaluate the risks and costs associated with settlement in the accounts of credit institutions or through its own accounts and shall provide such information on request.

Article 41U.K.Participant default rules and procedures

1.For each securities settlement system it operates, a CSD shall have effective and clearly defined rules and procedures to manage the default of one or more of its participants ensuring that the CSD can take timely action to contain losses and liquidity pressures and continue to meet its obligations.

2.A CSD shall make its default rules and relevant procedures available to the public.

3.A CSD shall undertake with its participants and other relevant stakeholders periodic testing and review of its default procedures to ensure that they are practical and effective.

F1214.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

Section 4 U.K. Prudential requirements

Article 42U.K.General requirements

A CSD shall adopt a sound risk-management framework for comprehensively managing legal, business, operational and other direct or indirect risks, including measures to mitigate fraud and negligence.

Article 43U.K.Legal risks

1.For the purpose of its authorisation and supervision, as well as for the information of its clients, a CSD shall have rules, procedures, and contracts that are clear and understandable for all the securities settlement systems that it operates and all other services that it provides.

2.A CSD shall design its rules, procedures and contracts so that they are enforceable in all relevant jurisdictions, including in the case of the default of a participant.

3.A CSD conducting business in different jurisdictions shall take all reasonable steps to identify and mitigate the risks arising from potential conflicts of law across jurisdictions.

Article 44U.K.General business risk

A CSD shall have robust management and control systems as well as IT tools in order to identify, monitor and manage general business risks, including losses from poor execution of business strategy, cash flows and operating expenses.

Article 45U.K.Operational risks

1.A CSD shall identify sources of operational risk, both internal and external, and minimise their impact through the deployment of appropriate IT tools, controls and procedures, including for all the securities settlement systems it operates.

2.A CSD shall maintain appropriate IT tools that ensure a high degree of security and operational reliability, and have adequate capacity. IT tools shall adequately deal with the complexity, variety and type of services and activities performed so as to ensure high standards of security, and the integrity and confidentiality of the information maintained.

3.For services that it provides as well as for each securities settlement system that it operates, a CSD shall establish, implement and maintain an adequate business continuity policy and disaster recovery plan to ensure the preservation of its services, the timely recovery of operations and the fulfilment of the CSD’s obligations in the case of events that pose a significant risk of disrupting operations.

4.The plan referred to in paragraph 3 shall provide for the recovery of all transactions and participants’ positions at the time of disruption to allow the participants of a CSD to continue to operate with certainty and to complete settlement on the scheduled date, including by ensuring that critical IT systems can promptly resume operations from the time of disruption. It shall include the setting-up of a second processing site with sufficient resources, capabilities and functionalities and appropriate staffing arrangements.

5.The CSD shall plan and carry out a programme of tests of the arrangements referred to in paragraphs 1 to 4.

6.A CSD shall identify, monitor and manage the risks that key participants in the securities settlement systems it operates, as well as service and utility providers, and other CSDs or other market infrastructures might pose to its operations. It shall, upon request, provide [F122the competent authority] with information on any such risk identified.

It shall also inform the competent authority F123... without delay of any operational incidents resulting from such risks.

7.[F124The Bank of England may make] regulatory technical standards to specify the operational risks referred to in paragraphs 1 and 6 and the methods to test, to address or to minimise those risks, including the business continuity policies and disaster recovery plans referred to in paragraphs 3 and 4 and the methods of assessment thereof.

F125...

F125...

Textual Amendments

Article 46U.K.Investment policy

[F1261.A CSD must hold its financial assets at any one or more of the following kinds of institution:

(a)central banks;

(b)credit institutions with permission to accept deposits under Part 4A of FSMA;

(c)CSDs and third-country CSDs recognised by the competent authority;

(d)third-country financial institutions that are subject to and comply with asset protection and prudential rules considered by the competent authority to be at least as stringent as those laid down in Directive 2013/36/EU UK law [F127, Regulation (EU) No. 575/2013 and CRR rules], and which the CSD assesses as having—

(i)robust accounting practices;

(ii)safekeeping procedures;

(iii)internal controls which ensure the full protection of those financial assets; and

(iv)low credit risk based upon an internal assessment by the CSD; or

(e)third-country CSDs which comply with asset protection rules considered by the competent authority to be at least as stringent as those laid down in this Regulation, and which the CSD assesses as having—

(i)robust accounting practices;

(ii)safekeeping procedures; and

(iii)internal controls which ensure the full protection of those financial assets.]

2.A CSD shall have prompt access to its assets, where required.

3.A CSD shall invest its financial resources only in cash or in highly liquid financial instruments with minimal market and credit risk. Those investments shall be capable of being liquidated rapidly with minimal adverse price effect.

4.The amount of capital, including retained earnings and reserves of a CSD which are not invested in accordance with paragraph 3 shall not be taken into account for the purposes of Article 47(1).

5.A CSD shall ensure that its overall risk exposure to any individual [F128institution of a kind referred to in paragraphs 1(b) to 1(e)] with which it holds its financial assets remains within acceptable concentration limits.

6.[F129The Bank of England may make] regulatory technical standards specifying the financial instruments that can be considered to be highly liquid with minimal market and credit risk as referred to in paragraph 3, the appropriate timeframe for access to assets referred to in paragraph 2 and the concentration limits as referred to in paragraph 5. Such draft regulatory technical standards shall, where appropriate, be aligned to the regulatory technical standards adopted in accordance with Article 47(8) of Regulation (EU) No 648/2012.

F130...

F130...

Textual Amendments

Article 47U.K.Capital requirements

1.Capital, together with retained earnings and reserves of a CSD, shall be proportional to the risks stemming from the activities of the CSD. It shall be at all times sufficient to:

(a)ensure that the CSD is adequately protected against operational, legal, custody, investment and business risks so that the CSD can continue to provide services as a going concern;

(b)ensure an orderly winding-down or restructuring of the CSD’s activities over an appropriate time span of at least six months under a range of stress scenarios.

2.A CSD shall maintain a plan for the following:

(a)the raising of additional capital should its equity capital approach or fall below the requirements laid down in paragraph 1;

(b)ensuring the orderly winding-down or restructuring of its operations and services where the CSD is unable to raise new capital.

The plan shall be approved by the management body or an appropriate committee of the management body and updated regularly. Each update of the plan shall be provided to the competent authority. The competent authority may require the CSD to take additional measures or to make any alternative provision where the competent authority considers that the CSD’s plan is insufficient.

3.[F131The Bank of England may make] regulatory technical standards specifying requirements regarding the capital, retained earnings and reserves of a CSD referred to in paragraph 1.

F132...

F132...

Textual Amendments

Section 5 U.K. Requirements for CSD links

Article 48U.K.CSD links

1.Before establishing a CSD link and on an ongoing basis once the CSD link is established, all CSDs concerned shall identify, assess, monitor and manage all potential sources of risk for themselves and for their participants arising from the CSD link and take appropriate measures to mitigate them.

2.CSDs that intend to establish links shall submit an application for authorisation to the competent authority F133... as required under point (e) of Article 19(1) or notify the competent [F134authority]F133... as required under Article 19(5).

3.A link shall provide adequate protection to the linked CSDs and their participants, in particular as regards possible credits taken by CSDs and the concentration and liquidity risks as a result of the link arrangement.

A link shall be supported by an appropriate contractual arrangement that sets out the respective rights and obligations of the linked CSDs and, where necessary, of the CSDs’ participants. A contractual arrangement with cross-jurisdictional implications shall provide for an unambiguous choice of law that govern each aspect of the link’s operations.

4.In the event of a provisional transfer of securities between linked CSDs, retransfer of securities prior to the first transfer becoming final shall be prohibited.

5.A CSD that uses an indirect link or an intermediary to operate a CSD link with another CSD [F135or third-country CSD] shall measure, monitor, and manage the additional risks arising from the use of that indirect link or intermediary and take appropriate measures to mitigate them.

6.Linked CSDs shall have robust reconciliation procedures to ensure that their respective records are accurate.

7.Links between CSDs [F136and links between CSDs and third-country CSDs] shall permit DVP settlement of transactions between participants in linked CSDs, where practical and feasible. Detailed reasons for any CSD link not allowing for DVP settlement shall be notified to the [F137competent authority].

8.Interoperable securities settlement systems and CSDs, which use a common settlement infrastructure shall establish identical moments of:

(a)entry of transfer orders into the system;

(b)irrevocability of transfer orders.

The securities settlement systems and CSDs referred to in the first subparagraph shall use equivalent rules concerning the moment of finality of transfers of securities and cash.

9.By 18 September 2019 all interoperable links between CSDs [F138and links between CSDs and third-country CSDs] operating in [F139the United Kingdom] shall be, where applicable, DVP-settlement supporting links.

10.[F140The Bank of England may make] regulatory technical standards to specify the conditions provided for in paragraph 3 under which each type of link arrangement provides for adequate protection of the linked CSDs and of their participants, in particular where a CSD intends to participate in the securities settlement system operated by another CSD, the monitoring and managing of additional risks referred to in paragraph 5 arising from the use of intermediaries, the reconciliation methods referred to in paragraph 6, the cases where DVP settlement through CSD links is practical and feasible as provided for in paragraph 7 and the methods of assessment thereof.

F141...

F141...

Textual Amendments

CHAPTER III U.K. Access to CSDs

Section 1U.K.Access of issuers to CSDs [F142or third-country CSDs]

Article 49U.K.Freedom to issue in a CSD [F143or third-country CSD]

[F1441.A UK issuer shall have the right to arrange for its securities admitted to trading on regulated markets or MTFs or traded on trading venues to be recorded in any CSD or third-country CSD recognised by the competent authority.

1A.A third-country issuer shall have the right to arrange for its securities admitted to trading on regulated markets or MTFs or traded on trading venues to be recorded in any CSD.

1B.Without prejudice to the UK issuer or third-country issuer's rights referred to in paragraphs 1 and 1A, the corporate or similar law of the country or territory under which the securities are constituted shall continue to apply.

1C.The CSD or third-country CSD recognised by the competent authority may charge a reasonable commercial fee for the provision of its services to issuers on a cost-plus basis, unless otherwise agreed by both parties.]

2.Where an issuer submits a request for recording its securities in a CSD [F145or third-country CSD referred to in paragraphs 1 or 1A], the [F146CSD or third-country CSD] shall treat such request promptly and in a non-discriminatory manner and provide a response to the requesting issuer within three months.

3.A CSD [F147or third-country CSD referred to in paragraphs 1 or 1A] may refuse to provide services to an issuer. Such a refusal shall be based only on a comprehensive risk assessment or if that CSD [F147or third-country CSD referred to in paragraphs 1 or 1A] does not provide the services referred to in point (1) of Section A of the Annex in relation to securities constituted under the corporate or similar law of the relevant [F148country or territory].

4.Without prejudice to [F149the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017], where a CSD [F150or third-country CSD referred to in paragraphs 1 or 1A] refuses to provide services to an issuer, it shall provide the requesting issuer with full written reasons for its refusal.

In the case of a refusal, the requesting issuer shall have the right to complain to the competent authority F151....

The competent authority F152... shall duly examine the complaint by assessing the reasons for refusal provided by the CSD and shall provide the issuer with a reasoned reply.

F153...

Where the refusal by the CSD to provide its services to an issuer is deemed to be unjustified, the responsible competent authority shall issue an order requiring the CSD to provide its services to the requesting issuer.

5.[F154The Bank of England may make] regulatory technical standards to specify the risks to be taken into account by CSDs when carrying out a comprehensive risk assessment, and [F155the competent authority] assessing the reasons for refusal in accordance with paragraphs 3 and 4, and the elements of the procedure referred to in paragraph 4.

F156...

F156...

6.[F157The Bank of England may make] implementing technical standards to establish standard forms and templates for the procedure referred to in paragraph 4.

F158...

F158...

Textual Amendments

Textual Amendments

Section 2U.K.Access between CSDs [F159and between CSDs and third-country CSDs]

[F160Article 50U.K.Standard link access

A CSD or third-country CSD shall have the right to become a participant of a CSD and set up a standard link with that CSD in accordance with Article 33 and subject to the prior notification of the CSD link provided under Article 19(5).]

Textual Amendments

Article 51U.K.Customised link access

1.Where a CSD [F161or third-country CSD] requests [F162a] CSD to establish a customised link for having access to the latter, the receiving CSD shall reject such a request only on the basis of risk considerations. It shall not deny a request on the grounds of loss of market share.

2.The receiving CSD may charge a reasonable commercial fee on a cost-plus basis to the requesting CSD for making customised link access available, unless otherwise agreed by both parties.

Textual Amendments

Article 52U.K.Procedure for CSD links

1.When a [F163CSD or third-country CSD submits a request for access to a CSD] pursuant to Articles 50 and 51, the latter shall treat such request promptly and shall provide a response to the requesting CSD within three months.

2.A CSD shall deny access to a requesting CSD only where such access would threaten the smooth and orderly functioning of the financial markets or cause systemic risk. Such a refusal shall be based only on a comprehensive risk assessment.

Where a CSD refuses access, it shall provide the requesting CSD with full reasons for its refusal.

In the case of a refusal, the requesting CSD has the right to complain to the competent authority of the CSD that has refused access.

The competent authority of the receiving CSD shall duly examine the complaint by assessing the reasons for refusal and shall provide the requesting CSD with a reasoned reply.

F164...

Where the refusal by the CSD to grant access to the requesting CSD is deemed to be unjustified, the competent authority of the receiving CSD shall issue an order requiring that CSD to grant access to the requesting CSD.

3.[F165The Bank of England may make] regulatory technical standards to specify the risks to be taken into account by CSDs when carrying out a comprehensive risk assessment, and by [F166the competent authority] when assessing the reasons for refusal in accordance with paragraph 2, and the elements of the procedure referred to in paragraph 2.

F167...

F167...

4.[F168The Bank of England may make] implementing technical standards to establish standard forms and templates for the procedures referred to in paragraphs 1 and 2.

F169...

F169...

Textual Amendments

Textual Amendments

Section 3U.K.Access between a CSD [F170or third-country CSD] and another market infrastructure

Article 53U.K.Access between a CSD [F171or third-country CSD] and another market infrastructure

1.[F172A UK CCP and a UK trading venue shall provide transaction feeds on a non-discriminatory and transparent basis to a CSD or third-country CSD upon request by the CSD or third-country CSD and may charge a reasonable commercial fee for such transaction feeds to the CSD or third-country CSD on a cost-plus basis unless otherwise agreed by both parties.]

A CSD shall provide access to its securities settlement systems on a non-discriminatory and transparent basis to a CCP or a trading venue and may charge a reasonable commercial fee for such access on a cost-plus basis, unless otherwise agreed by both parties.

2.When a party submits a request for access to another party in accordance with paragraph 1, such request shall be treated promptly and a response to the requesting party shall be provided within three months.

3.The receiving party shall deny access only where such access would affect the smooth and orderly functioning of the financial markets or cause systemic risk. It shall not deny a request on the grounds of loss of market share.

A party that refuses access shall provide the requesting party with full written reasons for such refusal based on a comprehensive risk assessment. In the case of a refusal, the requesting party has the right to complain to the competent authority F173....

The competent authority F174... shall duly examine the complaint by assessing the reasons for refusal and shall provide the requesting party with a reasoned reply.

F175...

Where the refusal by a party to grant access is deemed to be unjustified, the F176... competent authority shall issue an order requiring that party to grant access to its services within three months.

4.[F177The relevant authority may make] regulatory technical standards to specify the risks to be taken into account by CSDs when carrying out a comprehensive risk assessment, and by [F178the relevant authority] when assessing the reasons for refusal in accordance with paragraph 3, and the elements of the procedure referred to in paragraph 3.

F179...

F179...

5.[F180The relevant authority may make] implementing technical standards to establish standard forms and templates for the procedure referred to in paragraphs 2 and 3.

F181...

F181...

[F1826.For the purposes of paragraphs 4 and 5, “the relevant authority” means—

(a)the Bank of England in the case of requests made to CSDs and UK CCPs;

(b)the FCA in the case of requests made to UK trading venues.]

Textual Amendments

Textual Amendments

Back to top

Options/Help

Print Options

Close

Legislation is available in different versions:

Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.

Original (As adopted by EU): The original version of the legislation as it stood when it was first adopted in the EU. No changes have been applied to the text.

Close

See additional information alongside the content

Geographical Extent: Indicates the geographical area that this provision applies to. For further information see ‘Frequently Asked Questions’.

Show Timeline of Changes: See how this legislation has or could change over time. Turning this feature on will show extra navigation options to go to these specific points in time. Return to the latest available version by using the controls above in the What Version box.

Close

Opening Options

Different options to open legislation in order to view more content on screen at once

Close

More Resources

Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:

  • the original print PDF of the as adopted version that was used for the EU Official Journal
  • lists of changes made by and/or affecting this legislation item
  • all formats of all associated documents
  • correction slips
  • links to related legislation and further information resources
Close

Timeline of Changes

This timeline shows the different versions taken from EUR-Lex before exit day and during the implementation period as well as any subsequent versions created after the implementation period as a result of changes made by UK legislation.

The dates for the EU versions are taken from the document dates on EUR-Lex and may not always coincide with when the changes came into force for the document.

For any versions created after the implementation period as a result of changes made by UK legislation the date will coincide with the earliest date on which the change (e.g an insertion, a repeal or a substitution) that was applied came into force. For further information see our guide to revised legislation on Understanding Legislation.

Close

More Resources

Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:

  • the original print PDF of the as adopted version that was used for the print copy
  • correction slips

Click 'View More' or select 'More Resources' tab for additional information including:

  • lists of changes made by and/or affecting this legislation item
  • confers power and blanket amendment details
  • all formats of all associated documents
  • links to related legislation and further information resources