ESMA Proposes To Further Postpone CSDR Settlement Discipline
The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, has today published a final report on draft regulatory technical standards (RTS) definitively postponing the date of entry into force of the Commission 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 a request from the European Commission (EC).
📤 It's out! Final report on draft regulatory technical standards (RTS) definitively postponing the date of entry into force of RTS on settlement discipline until 1 Feb. 2022.
— ESMA – EU Securities Markets Regulator 🇪🇺 (@ESMAComms) August 28, 2020
The measure is additional to the Commission Delegated Regulation (EU) 2020/1212 , based on ESMA’s proposal to 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.
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.
The settlement discipline regime will be implemented in February 2022.
CSDR settlement discipline measures are due to be implemented in February 2022.
CSDR buy-in requirements are scheduled to go live on 1 February 2022.
CSDR introduces cash penalties and buy-ins for securities transactions which fail to settle.
The Central Securities Depositories Regulation had a mandatory buy-in regime.