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21/04/2021 14:45:00

Amendments to Directive No. 2

The CBM Directive No. 2 on Payment and Securities Settlement Systems seeks to reduce the legal and systemic risks associated with participation in payment systems and securities settlement systems; and aims to minimise the disruption to a system caused by insolvency proceedings against a participant in that system.

The Directive is modelled on the requisites of the Directive 98/26/EC on settlement finality in payment and securities settlement systems as amended by Directives 2009/44/EC, 2010/78/EU, and 2019/879/EU and Regulations (EU) No 648/2012 and No 909/2014.

To ensure full compliance with the BRRDII (Directive 2019/879/EU), the definitions of “central counterparty” and “participant” were amended in CBM Directive No. 2.

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