On 7 October 2026, the European Securities and Markets Authority (ESMA) issued a Public Statement regarding an extended transitional period for third-country central securities depositories (CSDs).
Background
CSDs established in a country outside of the European Union (third country CSDs) are allowed to provide notary services to issuers and central maintenance services to participants in relation to financial instruments constituted under the law of an EU Member State, subject to a specific recognition regime. Third-country CSDs already providing these services can continue to do so during a transitional period until a recognition decision has been taken, or until 17January 2027, whichever is earlier. The Market Integration and Supervision Package (MISP) aims to extend this transitional period for third-country CSDs by three years after its entry into force.
Public Statement
ESMA understands that the Council of the EU and the European Parliament support an extension of the transitional period for third-country CSDs.
But from a legal perspective, neither ESMΑ nor Member State competent authorities (NCAs) have the power to temporarily suspend or disapply a directly applicable EU legal text, even in exceptional circumstances.
Considering the proposed extension of the transitional period for third-country CSDs contained in the MISP and the emerging consensus between EU co-legislators, ESMA expects NCAs not to prioritise their supervisory and enforcement actions in relation to third-country CSDs not recognised by ESMA, until the extended transitional period proposed in the MISP takes effect.