CSDR's SDR delay 鈥榓 positive step鈥� for the industry
28 August 2020 London
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A further delay to the Central 麻豆传媒 Depositories Regulation (CSDR) settlement discipline regime until 1 February 2022 has been welcomed by industry participants.
Paul Baybutt, senior product manager, HSBC, explained that the delay is a 鈥減ositive step because it will allow the industry an opportunity to further address the open issues concerning the implementation of settlement discipline鈥�.
On 28 August,
In its final report, ESMA highlighted the 鈥渟evere impact鈥� of the ongoing COVID-19 pandemic on the overall implementation of regulatory and IT projects by central securities depositories (CSDs) and their participants as well as by other financial market infrastructures.
ESMA explained it would be 鈥渆xtremely difficult鈥� for market stakeholders to comply with the requirements of the RTS on settlement discipline by the 1 February 2021 deadline.
The RTS on settlement discipline covers measures to prevent and address settlement fails including rules for the trade allocation and confirmation process; cash penalties on failed transactions; mandatory buy-ins; and monitoring and reporting of settlement fails.
Baybutt said: 鈥淭his is the first step in organising a further delay to the EU settlement discipline regime.鈥�
He suggested that as ESMA has done this at the request of the European Commission 鈥渋t should pass quickly to parliament for a decision鈥�.
Also commenting on ESMA鈥檚 announcement, consultant Tony Freeman said that confirmation 鈥渃ame quite quickly鈥� but 鈥渢heir speed of action is very welcome鈥�.
Freeman explained that although the postponement is officially subject to non-objection by the European Parliament and the European Council, ESMA must be very confident this is a technicality.
Paul Baybutt, senior product manager, HSBC, explained that the delay is a 鈥減ositive step because it will allow the industry an opportunity to further address the open issues concerning the implementation of settlement discipline鈥�.
On 28 August,
In its final report, ESMA highlighted the 鈥渟evere impact鈥� of the ongoing COVID-19 pandemic on the overall implementation of regulatory and IT projects by central securities depositories (CSDs) and their participants as well as by other financial market infrastructures.
ESMA explained it would be 鈥渆xtremely difficult鈥� for market stakeholders to comply with the requirements of the RTS on settlement discipline by the 1 February 2021 deadline.
The RTS on settlement discipline covers measures to prevent and address settlement fails including rules for the trade allocation and confirmation process; cash penalties on failed transactions; mandatory buy-ins; and monitoring and reporting of settlement fails.
Baybutt said: 鈥淭his is the first step in organising a further delay to the EU settlement discipline regime.鈥�
He suggested that as ESMA has done this at the request of the European Commission 鈥渋t should pass quickly to parliament for a decision鈥�.
Also commenting on ESMA鈥檚 announcement, consultant Tony Freeman said that confirmation 鈥渃ame quite quickly鈥� but 鈥渢heir speed of action is very welcome鈥�.
Freeman explained that although the postponement is officially subject to non-objection by the European Parliament and the European Council, ESMA must be very confident this is a technicality.
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CSDR SDR: firms that use delay to improve internal infrastructure to be biggest winners
CSDR SDR: firms that use delay to improve internal infrastructure to be biggest winners
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