ESMA clarifies access for EU market participants to the services of third-country CSDs

AI summary of the source article

The European Securities and Markets Authority (ESMA) issued a statement clarifying that EU market participants should not be barred from accessing third-country Central Securities Depositories (CSDs) beyond 17 January 2027, pending finalized EU legislation. The current transitional regime enables certain third-country CSDs to provide notary and central maintenance services for financial instruments constituted under EU Member State law. Proposed extensions are included in the Market Integration and Supervision Package (MISP), supported by both the Council of the European Union and the European Parliament. ESMA's statement addresses concerns raised by issuers regarding operational challenges and uncertainty ahead of the expiration date.

Why it matters

The clarification helps prevent operational disruption for EU market participants and issuers relying on third-country CSDs for notary and central maintenance services while legislative negotiations proceed.

Key facts

• The current transitional regime allowing certain third-country CSDs to serve EU-constituted financial instruments is set to end on 17 January 2027.
• The Market Integration and Supervision Package (MISP) proposes extending the transitional regime, with support from the Council of the European Union and European Parliament.
• ESMA clarified that EU market participants should not be prevented from accessing third-country CSDs beyond 17 January 2027 until legislation is finalised.