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Managing the conflicts of rules
The draft CSD Regulation provides for the rule that without prejudice to the corporate law under which the securities are constituted, an issuer will have the right to arrange for its securities to be recorded in any CSD established in any Member State. A CSD conducting business in different jurisdictions is obliged, however, to identify and mitigate the risks arising from any potential conflicts of laws across jurisdictions.
Interoperable securities settlement systems and CSDs that use a common settlement infrastructure should also establish identical moments of:
(a) entry of transfer orders into the system;
(b) irrevocability of transfer orders;
(c) finality of transfers of securities and cash.