Question on CSD capital requirements and investment policy

For collateral to be considered of the best quality for the purpose of CSDR Articles 59(3)(d) and 59(4)(d), debt instruments are required to be liquidated “on a same day basis”. In the same manner, the appropriate timeframe in order to access the asset under the investment policy, as provided by art. 82(2), should be “on the same business day” We ask European Authorities to clarify the meaning of “same day basis” and “same business day” and the settlement period linked to it.

In order to calculate the additional capital surcharge resulting from the provision of intraday credit, CSDs are asked to “calculate, over the most recent calendar year, the average of the five highest intraday credit exposures (‘peak exposures’).” Further, Article 8(5) of EU Delegated Regulation 2017/390 states: “the capital requirements of this Article shall apply twelve months after obtaining the authorisation to provide banking-type ancillary services pursuant to Article 55 of Regulation (EU) No 909/2014”. On the other hand, the art. 82 of EU Delegated Regulation 2017/392 states about the investment policy that the CSD’s should have access to their assets invested in financial instruments “on the same business day when a decision to liquidate the financial instruments is taken”, according to their internal procedures.