Tag: buy-in

CSDs in France, Belgium and Netherlands to use inter-company workflow solution.

Lobbyists likely to use UK decision to not implement the settlement discipline regime as further leverage in calls for a delay. 

The Treasury said it will not implement the SDR from February 2021, but will consider the future approach of the rules to the UK’s own post-trade framework.  

 The association has urged the regulator to take ‘a holistic approach’ to postponing the Settlement Discipline Regime (SDR) by at least a year.

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

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

CSDR requires a neutral third-party to act as the buy-in agent, which Eurex STS aims to become through its new banking license.  

The consensus among both buy- and sell-side firms is that the mandatory buy-in regime will have significant negative implications on Europe’s capital markets.

Asset managers and pension funds have expressed concerns the CSDR mandatory buy-in regime will impact liquidity and increase costs.