VP securities obtains CSDR license
VP SECURITIES has been informed by the Danish FSA (Finanstilsynet) that, with effect from 3 January 2018, VP has been granted a licence to operate according to the new European CSD Regulation (CSDR). From now on, VP will be regulated by CSDR and the new Danish legislation (the Danish Capital Markets Act), which comes into effect on the same day. VP is among the very first CSDs in the EU to be re-authorised under the new European CSD Regulation.
VP filed a CSDR application in the spring of 2017, and the application itself is a comprehensive description of the systems and processes which provide the level of functionality, reliability and security required for CSDs within the EU. The approval process was conducted in close cooperation with the Danish FSA, as well as Danmarks Nationalbank and the European Central Bank.
CSDR creates a level playing field for European CSDs, as a logical element of the harmonisation measures which are also reflected in the new Danish Capital Markets Act that enters into force on 3 January 2018. The intention of CSDR is to harmonise the market for CSD services and to improve settlement security. For market participants, this provides for more extensive cross-border issuance and settlement, as CSDs will be competing on equal terms.
VP welcomes the new regulation as a great opportunity for VP. The framework underpinning CSDR will sharpen the competition between CSDs and the greater harmonisation of the marketplace will benefit customers in the years to come. VP is looking forward to meeting customers’ requirements by using the already existing infrastructure in new markets, besides offering our services to new customers.