For countries that receive less than the amount that they need to put into reserves, the new ‘global money’ would go into reserves freeing dollars that these countries would otherwise set aside. Countries that receive more than they must put into reserves could exchange the new money for conventional currencies.
Until the adoption of these rules, securities depositories had been somewhat constrained in what they could achieve by the fact that they were subject to differing national laws and requirements. The CSD Regulation streamlined some of these guidelines, thereby providing the legal framework for T2S’ technical operations. This gave further momentum to the post-trade harmonisation efforts.