The European Banking Authority has published final draft Regulatory Technical Standards updating prudential requirements for central securities depositories and designated credit institutions that provide banking-type ancillary services. The standards implement the Central Securities Depositories Regulation Refit by addressing the credit, liquidity and concentration risks that arise when a banking CSD provides services, particularly foreign-currency cash settlement, to participants of another CSD. They finalize proposals consulted on in December 2025 and complement separate EBA standards governing the activity thresholds for these arrangements. Banking CSDs must extend their existing risk frameworks to participants of other CSDs, gather information needed to identify material dependencies and assess overall exposures, and monitor intraday credit and liquidity risks. They must notify their competent authority when designated to provide these services, but will not have to report the related cash settlement separately. Participants may use a single cash account where they also participate in the banking CSD, while other amendments update capital, operational risk, market risk and collateral provisions to reflect changes to the Capital Requirements Regulation and the amended CSDR. The draft standards will be submitted to the European Commission for endorsement before publication in the Official Journal of the European Union.
European Banking Authority finalizes prudential standards for banking services provided across central securities depositories
The European Banking Authority has finalized prudential standards for banking CSDs and designated credit institutions providing banking-type ancillary services to other CSDs. The rules extend credit, liquidity and concentration risk controls to these arrangements and require supervisory notification, while avoiding separate reporting and permitting a single cash account in relevant cases. The draft standards will now go to the European Commission for endorsement.