The NCDCP has been granted a CSDR authorization to operate as central depository

(Created: 06.08.2018 16:20, Source: NCDCP)

The National Bank of Slovakia, in accordance with Regulation (EU) No. 909/2014 of 23 July 2014 on improving securities settlement in the European Union and on central securities depositories and amending Directives No. 98/26/EC and No. 2014/65/EU and Regulation (EU) No. 236/2014 (hereinafter referred to as the "Regulation No. 909/2014" or "CSDR") and the Securities Act, has granted the authorization to operate as the central depository to Národný centrálny depozitár cenných papierov, a. s. (National Central Securities Depository). The authorization became effective on 31 July 2018.

Národný centrálny depozitár cenných papierov, a. s. (NCDCP) shall now be subject to regulation under Regulation No. 909/2014, also known as the "CSDR". Thus, the NCDCP is currently the fourth central securities depository in the European Union which has successfully undergone a re-authorization process under European law (after the Latvian Nasdaq CSD SE, Danish VP Securities A/S and Portuguese Interbolsa, SGSCSLVM, S.A.) which can be considered a success also in view of the fact that NCDCP is one of the youngest central depositories in Europe.

The NCDCP filed a CSDR application for granting an authorization to operate as the central depository to the National Bank of Slovakia (NBS) on 19 June 2017, together with relevant documentation containing a comprehensive description of internal systems and processes designed to provide a level of functionality, reliability and security which complies with demanding requirements imposed on central depositories within the EU. The process of assessing the fulfilment of criteria within the meaning of Regulation No. 909/2014 and the approval of the NCDCP application itself took place in close and constructive cooperation with the National Bank of Slovakia as a representative of the Eurosystem and the European Central Bank.  

The meaning of CSDR implementation lies with, inter alia, in a fact that it creates the identical conditions for the operation and regulation of European securities depositories as a direct result of the application of capital market harmonization measures. In addition to this harmonization, the CSDR also aims to improve the conditions for securities settlement. Market participants will be thus provided with wider opportunities, for example, to cross-border securities issues and to operation settlement, as central depositaries will compete under the same conditions.

The NCDCP considers granting of an operating authorization pursuant to Regulation No. 909/2014 to be an excellent opportunity for further development in service delivery and enhancement of their quality through the creation of cross-border competition which should ultimately represent a benefit for participants, issuers, account holders and other current and future NCDCP business partners.

The list of services with regard to which the NCDCP has been granted the authorization is published on the NCDCP website and the website of NBS.