FCMC: violation committed in Nasdaq CSD SE Baltic Joint Depositary
Latvia’s Finance and Capital Market Commission has recorded a violation in Nasdaq CSD SE Baltic Joint Depositary, because the incident in the data centre made it impossible for Nasdaq CSD SE to perform its main functions for longer than two hours, as confirmed by the commission.
Nasdaq CSD SE could not perform its main functions as the central depository in all three securities settlement systems in Latvia, Lithuania and Estonia.
After receiving information from Nasdaq CSD SE, FCMC concluded that an incident took place in the primary data centre in Sweden at 08:22 on 18 April this year. Because of this incident Nasdaq CSD SE could not perform its functions until 12:52. This made it impossible for Nasdaq CSD to recover within two hours, as required by regulations.
After evaluating information provided by Nasdaq CSD SE, FCMC concluded that the actual effect the incident had on securities settlement system was small.
At the same time, FCMC also took into account the influence this incident had on Latvia’s, Estonia’s and Lithuania’s finance markets. Because of that, it is important to prevent such incidents in the future.