Regulatory News
ESMA says EU users may access third-country CSDs past 17 Jan 2027
ESMA said EU market participants should not be blocked from third-country CSDs beyond 17 January 2027, pending legislation to extend the transition.
- ESMA published a statement on access to third-country CSD services.
- The current transitional regime ends on 17 January 2027.
- ESMA says the EU should not be prevented from accessing those services beyond that date until legislation is finalised.
Action
ESMA published a statement clarifying access for EU market participants to third-country Central Securities Depositories beyond 17 January 2027.
The regulator said the current transitional regime is set to end on that date.
That regime allows certain third-country CSDs to provide notary and central maintenance services for financial instruments constituted under the law of an EU Member State.
Respondents
The statement covers EU market participants, particularly issuers.
ESMA said those market participants had raised concerns over continued access to third-country CSD services ahead of a political agreement on the proposed legislative extension.
Effective
ESMA said EU market participants should not be prevented from accessing third-country CSDs beyond 17 January 2027 and until the EU finalises legislation to extend the current transitional regime.
The Market Integration and Supervision Package, currently under negotiation, proposes extending that regime.
ESMA said it understands both the Council of the European Union and the European Parliament support an extension.
The authority said its statement is intended to provide clarity and support the orderly functioning of EU capital markets well ahead of the deadline.