ESMA Proposes To Further Postpone CSDR Settlement Discipline

Source: Markets Media ESMA 2020-08-31

The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, has today published afinal reporton draft regulatory technical standards (RTS) definitively postponing the date of entry into force of theCommission Delegated Regulation (EU) 2018/1229(RTS on settlement discipline) until 1 February 2022.

This postponement is due to the impact of the COVID-19 pandemic on the implementation of regulatory projects and IT deliveries by Central Securities Depositaries and a wide range of market participants and follows arequestfrom the European Commission (EC).

The measure is additional to theCommission Delegated Regulation (EU) 2020/1212, based on ESMA’sproposalto amend the RTS on settlement discipline to postpone its date of entry into force from 13 September 2020 to 1 February 2021.

The RTS on settlement discipline cover 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.

Next steps

Following the endorsement of the RTS by the EC, the Delegated Regulation will then be subject to the non-objection of the European Parliament and of the Council.

RegTech

ESMA

coronavirus

RTS

ESMA Proposes To Further Postpone CSDR Settlement Discipline

Subscribe to Our Newsletter!

Subscribe to Our Newsletter!