COUNCIL OF THE EUROPEAN UNION,THINK TANK,update

 

Library blog Tuesday 28 November 2023

● General Secretariat of the Council   Think Tank Review - November 2023   Ongoing discussions about EU treaty change; central bank digital currencies (CBDCs) as a possible future payment ecosystem; the digital euro's role as a store of value; the transition to renewables without jeopardising European energy security; a foreign policy strategy that acknowledges EU’s strategic interdependence; a possible new Middle East and related adaptations of European policies; President Biden’s visit to Israel and Gaza; and China’s developing influence in West Asia are some the issues discussed in the November Think Tank Review.

Library blog Wednesday 29 November 2023

● General Secretariat of the Council   New books added to the Council Library's collection - November 2023   Discover our selection of books recently added to the Council Library collection

Press material Monday 27 November 2023

● Council of the EU   27/11/2023 14:27 | Press release | Council adopts regulation on Central Securities Depositories   The Council today adopted a regulation that updates the rules on central securities depositories (CSDs). The new law will reduce the financial and regulatory burden on CSDs and improve their ability to operate across borders, while also strengthening financial stability. Aim of the review CSDs are national or international financial organisations that manage the ‘settlement’ (transfer of ownership) of securities such as shares and bonds. As such they play a key role on financial markets. The new regulation will reduce compliance costs and regulatory burdens for CSDs. This will improve the efficiency of securities settlement in the EU. It will also make it easier for CSDs to offer services across borders, while improving cooperation among supervisors. A simpler passporting regime ‘Passporting’ refers to the procedure via which a CSD based in one EU member state can provide services in another member state. The new regulation will clarify and simplify the rules, thus reducing the barriers to cross-border settlement and easing the administrative and financial burden. Better supervision The regulation will also make supervision of CSDs more effective by improving cooperation between supervisors. In cases where a CSD’s activities in at least two other member states are considered to be of substantial importance to the functioning of the securities markets and investor protection, a college will be set up to facilitate cooperation and information exchange between member state authorities. Supervisors will also have access to better information about the activities of non-EU CSDs operating in the EU. Improved settlement efficiency The new regulation contains measures to improve ‘settlement efficiency’ (the rate at which securities transactions settle on the intended date) by amending certain elements of the settlement discipline regime, including the preconditions for applying so-called mandatory buy-ins. These occur when a transaction has failed to settle at the end of an agreed period and the buyer of the securities is forced to repurchase them elsewhere. Under the revised regulation, such buy-ins will only be introduced as a measure of last resort, where the rate of settlement fails in the EU is not improving and is presenting a threat to financial stability. Banking-type ancillary services The regulation provides conditions under which CDSs can access banking-type services, including through other CSDs. As a result, offering services for a broader range of currencies as well as across borders will be facilitated. Background and next steps The law adopted today updates the Central Securities Depositories Regulation, which established a set of common requirements for CSDs operating securities settlement systems across the EU. The Central Securities Depositories Regulation was adopted in 2014 in the wake of the financial crisis. Its aim was to improve the safety and efficiency of settlements and provide a set of common requirements for CSDs across the EU. In July 2021 the Commission reported that, while the regulation was broadly successful in achieving its objectives, feedback from stakeholders indicated that significant barriers continued to exist in a number of areas. For instance, the Commission found that the current passporting regime is lengthy and burdensome and discourages cross-border services. While ‘settlement efficiency’ (the rate at which securities transactions settle on the intended date) has slowly improved since the adoption of the 2014 regulation, it is still lower than in other developed capital markets. As a result, on 16 March 2022 the Commission published a proposal for a review of the CSDR, focusing on five main areas: the passporting regime, cooperation between supervisory authorities, banking-type ancillary services, settlement discipline and the oversight of third country CSDs. The Council adoption today closes the decision-making procedure. The regulation will be published in the Official Journal and enter into force 20 days after its publication. Regulation amending Regulation (EU) No 909/2014 as regards settlement discipline, cross-border provision of services, supervisory cooperation, provision of banking-type ancillary services and requirements for third-country central securities depositories and amending Regulation (EU) No 236/2012 Statements Votes Central Securities Depositories: Council and Parliament reach agreement (press release 27 June 2023) Capital Markets Union (background information)

Press material Monday 27 November 2023

● Council of the EU   27/11/2023 14:25 | Press release | Council adopts regulation easing access to corporate information for investors   The EU is about to create a single point of access to public financial and non-financial information about EU companies and EU investment products. Today, the Council adopted a regulation creating the European Single Access Point (ESAP) - a platform that will make this information easier for investors to consult. The European Single Access Point will give companies more visibility towards investors and open up more financing opportunities, especially for small companies in small capital markets. Investors in capital markets must have access to comparable information about companies and financial products. The ESAP will offer free, user friendly, centralised and digital access to financial and sustainability-related information made public by European companies, including small companies. This will facilitate the decision-making process for a broad range of investors, including retail investors. ESAP does not impose any additional information reporting requirements on European companies. The accessible information will already be public in application of the relevant European directives and regulations. Sustainability information will also be made available on ESAP. Meetings Wednesday 29 November 2023   ● Council of the EU   29/11/2023 10:18 | MEETING | General Affairs Council (Cohesion), 30 November 2023   Background brief - General Affairs Council (Cohesion), 30 November 2023