Abstract
This chapter explores the legal and regulatory framework of the Central Securities Depositories Regulation (CSDR) and investigates the delicate dynamics of the CSDs' default arrangements to manage a CSD participant's default. CSDs are recognized to be a core component in the smooth functioning of the financial system. CSDR was made law in 2014 and created a new uniform legal and regulatory framework for CSDs in the European Union. One feature of the regulation of CSDs, as with other types of financial market infrastructure, was the requirement for rules and procedure for an orderly management of the default of a CSD participant. The chapter identifies that, while policymakers and CSDs share the same objective of ensuring the safety of securities settlement systems, CSDs' rulebooks and default rules and CSDR itself might have lagged behind the development of new resolution procedures for a participating financial institution which get into difficulties. It critically assesses some of the practices included in CSDs' rulebook on a participant's default management and how they would practically apply vis-à-vis the resolution of a participating firm.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
