Version in force , Modified +287 −36§
Amended by Regulation (EU) 2023/2845 32023R2845 on EUR-Lex (external, EUR-Lex)
Explanation, written by a model and checked against the cited text
Paragraph 2 now adds that a CSD may offer to settle cash payments through accounts opened with another CSD authorised to provide the services listed in Section C of the Annex, whether within the same group of undertakings controlled by the same parent undertaking or not, in addition to the previously listed options of a credit institution or its own accounts.
The following sentence of paragraph 2 is correspondingly expanded so that the requirement to act in accordance with Title IV now also covers settlement through the accounts of another CSD, not only through a credit institution or the CSD's own accounts.
Cited: Art. 40, v1 (external, EUR-Lex) · Art. 40, v2 (external, EUR-Lex)
v1 is the previous version, v2 this one.
Text from EUR-Lex, before and after
Previous version, in force 22 June 2022 02014R0909-20220622 → this version, in force 16 January 2024 02014R0909-20240116
Article 40
Cash settlement
1. For transactions denominated in the currency of the country where the settlement takes place, a CSD shall settle the cash payments of its securities settlement system through accounts opened with a central bank of issue of the relevant currency where practical and available.
2. Where it is not practical and available to settle in central bank accounts as provided in paragraph 1, a CSD may offer to settle the cash payments for all or part of its securities settlement systems through accounts opened with a credit institution institution, through a CSD that is authorised to provide the services listed in Section C of the Annex whether within the same group of undertakings ultimately controlled by the same parent undertaking or not, or through its own accounts. If a CSD offers to settle in such cash payments through accounts opened with a credit institution or institution, through its own accounts, accounts or the accounts of another CSD, it shall do so in accordance with the provisions of Title IV.
3. A CSD shall ensure that any information provided to market participants about the risks and costs associated with settlement in the accounts of credit institutions or through its own accounts is clear, fair and not misleading. A CSD shall make available sufficient information to clients or potential clients to allow them to identify and evaluate the risks and costs associated with settlement in the accounts of credit institutions or through its own accounts and shall provide such information on request.