On 26 November 2019, IRE GVT announced bill currently at third stage in Dáil Éireann.
- Draft law to be adopted in the context of Brexit upon which Irish market will no longer be able to access current UK settlement system (CREST) and will require new regime.
- Irish market selected Euroclear Bank as its preferred long term settlement solution.
- Migration from CREST to Euroclear must be completed, fully operational by Mar. 2021.
- Legislation will provide alternative mechanism to Schemes of Arrangement under the Companies Act 2014, for issuers to migrate securities to Euroclear settlement system.
- The Future Migration of Participating Securities Bill also published at this preliminary stage so as to facilitate the market participants' engagement in this complex process.
Potential Hard Brexit
- EC adopted equivalence decision for UK based Central Securities Depositories (CSDs).
- Decision was issued in relation to a potential hard Brexit, will expire at end Mar. 2021.
- Along with amendments to Ireland’s Settlement Finality Framework in Withdrawal of UK from EU (Consequential Provisions) Act 2019, it resolved short term implications.
- For Irish equities Exchanged Traded Funds listed on Dublin and London stock markets.