Eurex Securities Transactions Services to Close03.30.2022
Eurex Securities Transactions Services GmbH (Eurex STS) will wind down its services with effect from 30 June 2022. Eurex STS is thus responding to the “Refit” draft of the Central Securities Depository Regulation (CSDR) published by the European Commission on 1
Deutsche Börse founded Eurex STS in 2019 to support both the financial industry and the regulatory agenda with a workable solution for mandatory buy-ins and to address settlement fails. These are significantly higher within the EU than in other regions and were identified as a risk to the financial market in the aftermath of the financial crisis.
Since its initial proposal in 2012, the CSDR and its Settlement Discipline Regime (SDR) provided for cash penalties in case a transaction fails to settle and a mandatory buy-in procedure as a final backstop. Originally planned for September 2020 and postponed several times, the SDR finally came into force in February 2022, albeit without the mandatory buy-in component.
The decision by the European Commission to propose the removal of the buy-in obligation from the SDR for an indefinite time renders the business proposition of Eurex STS unviable.
Source: Deutsche Börse
Clarification that margins and physically settled derivatives are not in scope of mandatory buy-ins is needed....
Mandatory buy-ins will be subject to an assessment by the Commission.
Licence in Oslo marks final step to align with European regulatory framework.
The settlement discipline regime will be implemented in February 2022.
CSDR settlement discipline measures are due to be implemented in February 2022.