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Part 2 I1

This Part sets out modifications made to Regulation No. 909/2014 (“UK CSDR”) and the version so modified is referred to in this Part as “DSS CSDR”. The provisions specified in the first column are modified as provided for in the corresponding entry in the second column.

ProvisionModification
Article 2(1)(1)Treat the definition of “central securities depository” or “CSD” as including a sandbox entrant that is approved to carry-out DSS activities under regulation 3(5)(b).
Article 2(1)(3)Treat the definition of “immobilisation” as excluding the word “physical”.
Article 2(1)(4)Treat the definition of “dematerialised form” as including FMI sandbox instruments that are recorded or settled on a sandbox entrant’s platform.
Article 2(1)(8)Treat the definition of “financial instruments” or “securities” as being FMI sandbox instruments under regulation 3(7).
Art. 2(1)(9)Treat the definition of “transfer order” as meaning the definition in the Financial Markets Insolvency (Settlement Finality) Regulations 1999 f1.
Article 2(1)(27)Treat the definition of “delivery versus payment” or “DVP” as including a transfer of securities with a transfer of cash that may be linked to a settlement mechanism operating across one or more systems.
Article 2(1)(28)Treat the definition of “securities account” as including an account or wallet either in digital or electronic form.
Article 2(1)(34)Treat the definition of “international open communication procedures and standards” as including such other communication procedure and standard as approved in the FMI sandbox arrangements.
Article 3(2)Treat the reference to “book entry” as including a form of recording of transferable securities using developing technology.
Article 9Treat this article as disapplied.
Article 10Treat “competent authority” as including an appropriate regulator or the appropriate regulators acting jointly by or under these Regulations.
Articles 16 to 22Treat these articles as disapplied.
Articles 25 to 26Treat these articles as disapplied.
Article 27

Treat Articles 27(1) to (6) as disapplied.

Treat the reference to “this Regulation” in Article 27(8) as including a reference to any rules made by the appropriate regulator under regulation 7 and any technical standards made by the Bank of England under regulation 8, in so far as these rules or technical standards are on the subject matter of a provision of UK CSDR that is disapplied by this Schedule. Treat this article as modified to provide that regulations 5F to 5J of the Central Securities Depositories Regulations 2014f2 are included as a new Article 27(9).

Treat article 27(9) as further modified to provide that—

  1. (a)

    any reference in regulation 5F to 5J to a “recognised CSD” is a reference to a “CSD” under Article 2(1)(1) of DSS CSDR;

  2. (b)

    any reference to the CSD regulation is a reference to DSS CSDR;

  3. (c)

    any reference to the Act is a reference to FSMA 2000;

  4. (d)

    in regulation 5G(2) any reference to DSS CSDR (in place of CSDR) as a result of paragraph (b) above is to be treated as including a reference to any rules made by the appropriate regulator under regulation 7 and any technical standards modified by the Bank of England under regulation 8, insofar as these rules or technical standards are on the subject matter of a provision of UK CSDR that is disapplied by this Schedule;

  5. (e)

    any reference to “this regulation” or to any part of regulation 5F to 5J includes a reference to the regulations as modified under this Article 27(9).

Articles 28 to 30Treat these articles as disapplied.
Articles 32 to 60Treat these articles as disapplied.
Article 62Treat this article as disapplied.
F1Article 64Treat this article as disapplied.
Article 65In paragraph (1), treat the reference to “competent authority” as a reference to a digital securities depository. Treat the reference to “infringements of this Regulation” as a reference to infringements of requirements (which may include a requirement imposed by a SAN) imposed by or under these Regulations. Treat the reference to “competent authorities” as a reference to the Bank of England. In paragraph (3), treat the first sub-paragraph as imposing a direct requirement on a digital securities depository to have in place the reporting procedures mentioned in that paragraph.
Article 66Treat this article as disapplied.
F2Article 73 Treat this article as disapplied.

Annotations

Textual amendments

F1

Words in Sch. Pt. 2 substituted (3.3.2025) by The Financial Services and Markets Act 2023 (Digital Securities Sandbox) (Amendment) Regulations 2025 (S.I. 2025/93), regs. 1(2), 5(1)(a)

F2

Words in Sch. Pt. 2 substituted (3.3.2025) by The Financial Services and Markets Act 2023 (Digital Securities Sandbox) (Amendment) Regulations 2025 (S.I. 2025/93), regs. 1(2), 5(1)(b)

Commencement

I1

Sch. Pt. 2 in force at 8.1.2024, see reg. 1(2)

Footnotes

f1

S.I. 1999/2979.

f2

Regulations 5F to 5J were inserted by S.I. 2017/1064, regulation 5(1) and (9).