Baltic, Financial Services, Investments
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Friday, 26.04.2024, 07:17
Nasdaq Merges its Baltic CSDs to Create Nasdaq CSD
Nasdaq (Nasdaq: NDAQ) today announced the cross-border merger of the
central securities depositories (CSDs) of Estonia, Latvia and Lithuania into a
single licensed legal entity – Nasdaq CSD Societas Europaea (Nasdaq CSD).
Nasdaq CSD is the first CSD in the EU to be reauthorized under the European CSD
Regulation (CSDR). This is the first time a common authorization, supervision
and regulatory framework for CSDs has been instituted at a pan-European level.
Following the cross-border merger, from today, Nasdaq CSD has joined the
pan-European securities settlement platform TARGET2-Securities (T2S), a major
financial infrastructure project initiated by the European Central Bank. T2S
brings benefits to the European post-trade industry and makes cross-border
settlements easier and more efficient.
The merger of Nasdaq’s Baltic CSDs aims to increase the competitiveness of
the post-trade ecosystem in the Baltic region and ensure more integrated
securities trading and post-trade services for companies and investors in the
Baltics and abroad. The legal entity of Nasdaq CSD will be based in Latvia,
with local branches in Estonia and Lithuania. Client servicing and local
business will continue in all three countries as before.
"A few years ago the Baltic CSDs embarked on a path of strategic
change driven by the CSDR and T2S panEuropean regulatory and infrastructure
initiatives. Today that vision is being fulfilled. Our ambition to operate as a
regional CSD under a single license, as Nasdaq CSD, is a natural response to
the changing CSD landscape across Europe," says Arminta Saladziene, VP and Head of Nasdaq Securities Services and
Chair of the Supervisory Council of Nasdaq CSD.
"We look forward to leveraging opportunities for smart and sustainable
growth, being powered by modern technology, connected to T2S and operated with
maximum efficiency," she said.
"With the consolidation of the national CSDs, the migration of Nasdaq
CSD to T2S, the new core CSD IT platform and the start of the operations under
the CSDR regime, the Baltic securities market is undergoing one of the biggest
transformations in its history. Success would not have been possible without
effective partnership with the regulators, central banks, market participants
and other stakeholders across the region and beyond," notes Indars Ascuks, Head of the Nasdaq
Baltic Market and CEO of Nasdaq CSD.
"We believe that these changes will increase the competitiveness of
the Baltic securities market and create valuable synergies for all
participants," he said.
"T2S has played a key role in building an integrated securities
settlement market in Europe, increasing the efficiency and safety of post-trade
services. Having joined T2S, Nasdaq CSD, along with the other CSDs that
participate in T2S, now benefits from, among other things, collateral saving
and liquidity optimisation opportunities. I also believe that the consolidation
of infrastructures by Nasdaq will bring further efficiency gains for the
region," says Marc Bayle de Jesse,
Director General Market Infrastructure and Payments of the European Central
Bank.