Cross-CSD cash settlement faces expanded risk controls
Banking central securities depositories would extend risk controls to participants of other depositories under European Banking Authority (EBA) draft amendments published on October 12, 2026. The final report, dated October 9, awaits Commission endorsement.
One account, combined exposures
The draft amends Regulation (EU) 2017/390 following CSDR Refit, which permits banking central securities depositories (CSDs) to serve other CSDs' participants.
Providers must assess credit, liquidity and concentration risks, gather participant and group information and identify material dependencies.
Controls cover direct access and access through intermediaries.
With participant approval, one cash account can support both CSDs, using aggregate exposures and existing reporting rather than separate accounts.
Providers must immediately notify supervisors of designation; annual qualitative statements and monthly metrics remain.
The EBA updates Capital Requirements Regulation references, removes advanced operational-risk methods and rejects looser guarantee-based collateral standards.
Five peaks set the surcharge
Investment-risk capital includes 8 percent of credit and counterparty risk-weighted exposures plus market-risk requirements.
The intraday surcharge uses the previous year's five highest exposures, assuming a further 5 percent collateral loss after haircuts; it applies 12 months after authorisation.
Wind-down capital covers at least six months.
Consultation lasted three months, ended March 3, 2026 and drew six responses, one public.
The draft goes to the European Commission for endorsement and would enter into force 20 days after Official Journal publication.
Risk ownership stays put
Single-account treatment preserves netting and collateral efficiency rather than imposing separate reporting.
Respondents disputed information-sharing duties and warned of higher costs.
The EBA keeps responsibility with banking CSDs: they must obtain adequate participant information or decline the service.