Implications of the UK’s decision to leave the EU for Ireland’s securities settlement infrastructure

The Central Bank of Ireland notes the statement issued today by the Department of Finance setting out the potential for the establishment of an Irish-based central securities depository (CSD)¹.

Ireland is currently in a unique position among EU Member States, as it has no indigenous securities settlement systems infrastructure. Most trades in Irish corporate securities are settled in the UK-based CREST securities settlement system.

As part of its contingency planning in advance of the 2016 UK referendum, the Central Bank assessed the potential for disruption to securities settlement arrangements for Irish corporate issues that would require an alternative market solution.

The Central Bank considers that the ongoing provision of effective securities settlement services is critically important for the Irish market. As a competent authority under the CSD Regulation, the Central Bank engages with all interested parties and stands ready to assess any applications for authorisation. Interested firms can review information on the application process.

Note

In accordance with Regulation (EU) No 909/2014 (the Central Securities Depository Regulation), the Central Bank of Ireland has been designated as a competent authority under the European Union (Central Securities Depositories) Regulations 2016 (S.I. No. 481 of 2016).

¹ A CSD is a specialised financial institution that facilitates the settlement of trades in securities between market participants.