Central Securities Depositories Regulation (CSDR)

The Central Securities Depositories Regulation (CSDR) is a European law designed to improve the safety, efficiency, and stability of securities settlement processes—how securities like stocks and bonds are transferred and recorded. It aims to reduce settlement failures, increase transparency, and ensure that transactions occur smoothly and reliably across markets. CSDR sets rules for Central Securities Depositories (CSDs), which are specialized entities that handle the safe custody and transfer of securities, and introduces measures like penalties for late settlement to encourage timely processing. Overall, it enhances confidence and integrity in the European financial market infrastructure.