ESMA Looks To Delay CSDR Settlement Discipline Regime
The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, is working on a proposal to possibly delay the entry into force of the CSDR settlement discipline regime until 1 February 2022. This is due to the impact of the COVID-19 pandemic on the implementation of regulatory projects and IT deliveries by CSDs and came as a request from the European Commission.
This measure would be additional to the delay foreseen in the ESMA Final Report on RTS on postponing the date of entry into force of the Commission Delegated Regulation (EU) 2018/1229 (RTS on settlement discipline) until 1 February 2021. This has been endorsed by the European Commission on 8 May 2020 and it is subject to the non-objection of the European Parliament and of the Council until 8 August 2020.
🔴#ESMA is working on a proposal to possibly delay the entry into force of the Central Securities Depositories Regulation settlement discipline regime.
— ESMA – EU Securities Markets Regulator 🇪🇺 (@ESMAComms) July 28, 2020
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 settlement fails.
ESMA aims to publish the final report on further postponing the date of entry into force of the RTS on settlement discipline by September. Following the endorsement of the RTS by the European Commission, the Commission Delegated Regulation will then be subject to the non-objection of the European Parliament and of the Council.
A study found productivity is highest among employees who opted for the most flexible work models.
CCPs will continue to consider the impact of margins on market liquidity.
Lee Olesky, CEO and Billy Hult, President at Tradeweb discuss the impact of the COVID-19 pandemic.
Systems, programs and models based on pre-COVID-19 data may no longer be accurate.
Retiring Vice Chairman and co-founder says the legacy of 2020 can be a positive one.