CSDR Update

Monte Titoli's CSDR application is complete and now under review by local Authorities

Monte Titoli is pleased to announce that on 24 June,  the local supervisory Authorities: Banca d’Italia and CONSOB, have formally communicated that the request for authorization of Monte Titoli pursuant to the CSDR is complete.
The Authorities have now begun analyzing the documentation presented in order to verify that Monte Titoli has adopted all the necessary provisions to ensure compliance with the obligations established by the CSDR Regulation.
Once this activity is successfully completed, in an estimated timeframe of approximately 6 months, the Authorities will issue Monte Titoli with the authorization to provide services as a central depository in accordance with the CSDR.

Monte Titoli has begun implementing the regulation discipline envisaged by the CSDR which will most likely become effective by November 2020.  With the new discipline, penalties will be applied not only in the event of failure to settle an operation on the scheduled date but also in the case of late matching and fails due to "on hold" transactions.  In addition, the buy-in procedure for OTC transactions will be introduced.  At the moment, Monte Titoli is actively cooperating with the Association of Central Depositors (ECSDA) and within T2S for the consolidation of the operating procedures and is in the process of finalizing a first draft of the Operating Manual with its participants.
The CSDR considers CSDs as critical market infrastructures with guiding principles of regulatory provisions aimed to:
• Increase the safety, reliability and efficiency of CSDs
• Ensure that CSDs are subject to a common regulatory framework in the European Union
• Harmonize the legal aspects related to the settlement of securities
• Create a level playing field among CSDs that stimulates competition and interconnection between systems

Monte Titoli has always pursued these guidelines in organizing and managing the service for its participants.  In fact, although it is still awaiting authorization, Monte Titoli has already largely implemented the measures envisaged by the CSDR. In particular, Monte Titoli has already established the User Committee where participants can discuss high-profile topics and, if necessary, present their point of view to the Monte Titoli Board of Directors.
The CSDR authorization will therefore be the formal certification of the efficiency and reliability achieved by Monte Titoli that will be beneficial not only for its customers but also for the proper functioning of the European capital market.