Regulation

Investment strategies incorporating environmental, social and governance (ESG) factors outperformed during recent market turbulence, regardless of the challenges that the concept still needs to overcome.

Custodians are still waiting for vital information to work out exactly how the penalties are calculated under CSDR.

The decision from the European Commission means the rules will come into force from 3 September 2020. 

The spike in settlement fails during this period could further encourage the industry to increase calls for regulators to reconsider a delay to the CSDR buy-in regime

The associations said the industry would not be able to make the changes to adapt to the planned consolidation of T2 and T2S by November 2021. 

Trade associations including AIMA and FIA EPTA have said the short selling restrictions have failed to curb volatility and could pose long-term damage. 

The endorsement comes two months after the ESMA stated it would postpone enforcing CSDR's settlement discipline regime following an industry-wide lobby.

With SFTR informally delayed until 13 July 2020, European regulators approve four trade repositories for all types of securities finance transactions.