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Document 32014R0909

Improving securities settlement in the EU

Improving securities settlement in the EU



Regulation (EU) No 909/2014 on improving securities settlement in the European Union and on central securities depositories


  • It aims to harmonise the timing and conduct of securities settlement in the European Union (EU) and the rules for central securities depositories (CSDs)* which operate the settlement infrastructure.
  • It is designed to increase the safety and efficiency of the system, particularly for intra-EU transactions.


  • The regulation introduces:
    • shorter settlement periods: in general, these should take place no later than the second business day after the trading occurs;
    • an obligation to record in book-entry form* all transferable securities admitted to trading or traded on the trading venues;
    • settlement discipline: CSDs must operate a penalty system, including cash fines, to deal with settlement failures.
  • EU countries’ national authorities:
  • CSDs must:
    • have robust governance arrangements, a clear organisational structure, internal controls and sound administrative and accounting procedures;
    • ensure senior management is of sufficiently good repute and experience;
    • establish user committees for each securities settlement system they operate;
    • maintain for at least 10 years all records of their services and activities;
    • remain fully responsible for any work they outsource;
    • display transparency by publicly disclosing the prices and fees involved in the core services they provide;
    • have sufficient capital to be adequately protected against operational, legal, custody, investment and business risks;
    • secure additional authorisation before providing any banking-type ancillary services.
  • CSDs in a non-EU country may operate through an EU-based branch, provided they meet certain requirements.
  • ESMA maintains a publicly available register of each authorised CSD.
  • Alongside the right to impose criminal sanctions, EU countries’ competent authorities have the power to apply appropriate administrative sanctions and other measures for an infringement.


  • Book-entry form requirements (Article 3(1)) apply from 1 January 2023 to transferable securities issued after that date and from 1 January 2025 to all transferable securities.
  • The regulation’s settlement date rules (Article 5(2)) apply from 1 January 2015.


  • Settlement across borders presents higher risks and costs for investors than domestic operations. At the same time, this form of transaction is increasing. Traditionally, CSDs have been regulated nationally.
  • The legislation provides a common set of prudential, organisational and conduct of business standards for use across the EU, whose existence will play a crucial role in financing the economy.
  • For more information, see:


Central securities depositories: institutions that put into effect transactions agreed on the market between buyers and sellers.

Book entry: where the ownership of a security is recorded in electronic form rather than in certificate form.


Regulation (EU) No 909/2014 of the European Parliament and of the Council of 23 July 2014 on improving securities settlement in the European Union and on central securities depositories and amending Directives 98/26/EC and 2014/65/EU and Regulation (EU) No 236/2012 OJ L 257, 28.8.2014, pp. 1-72)

Successive amendments to Regulation (EU) No 909/2014 have been incorporated in the original text. This consolidated version is of documentary value only.

last update 23.03.2017