ESMA Clarifies Rules for EU Market Participants Accessing Third-Country CSDs

The European Securities and Markets Authority (ESMA), the principal regulator and supervisor of financial markets in the European Union, has issued a clarification regarding access for EU market participants to the services provided by third-country Central Securities Depositories (CSDs). The guidance addresses key aspects of post-trading activities within the European regulatory framework. Central Securities Depositories are critical post-trade financial market infrastructures that facilitate the issuance, holding, and settlement of securities. ESMA's latest announcement focuses on clarifying how European entities can interact with and utilize services offered by CSDs established outside the European Union. This regulatory guidance is designed to assist market participants in maintaining compliance with applicable cross-border requirements while conducting post-trading operations in international securities markets.