EBA publishes final draft standards on thresholds and risk management for central securities depositories

The European Banking Authority (EBA) has published its final draft Regulatory Technical Standards (RTS) that establish the threshold levels for non-banking central securities depositories (CSDs) to use banking CSDs or credit institutions for cash settlement without additional authorization.

Key features of the RTS include:

• Threshold levels: minimum at EUR 3.75 billion and 1.5% of annual settlement volume; maximum at EUR 6.25 billion and 2.5% of annual settlement volume.
• Dynamic thresholds: thresholds that adjust based on the risk profile of the designating CSD and the designated credit institution, increasing with activity levels.
• Risk management and prudential measures: proportionate to the thresholds.

The standards are based on Article 54(9) of Regulation (EU) No 909/2014 (CSDR), which mandates the EBA to develop draft RTS to determine these thresholds and associated risk management requirements to mitigate risks related to the designation of credit institutions.

The final draft RTS document is available in PDF format and can be accessed through the official EBA publication portal.