ESMA Proposes Simplifying CSDR Cash Penalty Process11.22.2022
The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, published a Final Report on amending the regulatory technical standards (RTS) on the Settlement discipline, to simplify the cash penalties process by putting the CSDs in charge of collection and distribution, including for CCP-cleared transactions.
✅ simplify the cash penalties process by putting the CSDs in charge of collection and distribution, including for CCP-cleared transactions
🚫 remove CCP-run separate process pic.twitter.com/u70liKwqpL
— ESMA – EU Securities Markets Regulator 🇪🇺 (@ESMAComms) November 22, 2022
The proposed amendment would remove the CCP-run separate process established in Article 19 of the RTS for the collection and distribution of cash penalties for settlement fails on cleared transactions. It would also put the CSDs in charge of the entire process of collecting and distributing penalties according to Articles 16, 17 and 18 of the same regulation, establishing a single harmonised process for all transactions (both cleared and uncleared).
This draft RTS will be sent to the European Commission (EC) for endorsement in the form of a Commission Delegated Regulation. Following its endorsement by the EC, the Commission Delegated Regulation will then be subject to the non-objection of the European Parliament and of the Council.
FINAL REPORT CSDR RTS ART 19 AMENDMENT
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Removal of the buy-in obligation from the SDR renders Eurex STS' business unviable.
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Licence in Oslo marks final step to align with European regulatory framework.
The settlement discipline regime will be implemented in February 2022.