The European Banking Authority has published final draft Regulatory Technical Standards establishing the activity threshold under which non-banking central securities depositories can use banking central securities depositories or credit institutions for cash settlement without the entities needing additional authorisation, alongside accompanying prudential risk management requirements. The RTS set a minimum threshold of EUR 3.75 billion and 1.5% of annual settlement volume and a maximum threshold of EUR 6.25 billion and 2.5% of annual settlement volume. They also introduce a dynamic threshold that adjusts to the risk profile of both the designating CSD and the designated credit institution, with prudential and risk management requirements increasing as activity levels rise. The standards are mandated under Article 54(9) of Regulation (EU) No 909/2014 (Central Securities Depositories Regulation) and have been adopted by the EBA and submitted to the European Commission.
European Banking Authority 2025-12-16
European Banking Authority publishes final draft RTS setting EUR 3.75 billion to EUR 6.25 billion and 1.5% to 2.5% thresholds for CSD cash settlement via credit institutions
The European Banking Authority has published final draft Regulatory Technical Standards setting activity thresholds for non-banking central securities depositories using banking central securities depositories or credit institutions for cash settlement without additional authorisation. The standards establish thresholds of EUR 3.75 billion and 1.5% to EUR 6.25 billion and 2.5% of annual settlement volume, with dynamic adjustments based on risk profiles. These standards are mandated under Article 54(9) of Regulation (EU) No 909/2014 and have been submitted to the European Commission.