Market participants will be conscious of European settlement rates with incoming regulation on the horizon which penalises fails.
The EU watchdog will not renew the short selling reporting changes which are due to expire on 19 March, following an extension in December last year.
The trade bodies said many firms will be unable to make the necessary changes to their operations to meet the rules under the current timeline.
Regulators seek to minimise the potentially wide-spread impact of Brexit on Europe’s capital markets.
The move will allow Euroclear UK and Ireland (EUI) to continue to settle Irish-domiciled funds and securities once the Brexit transition period ends on 31 December.
The new chair of ESMA will take up the role in April 2021 once Steven Maijoor steps down.
Panellists at the Network Forum Autumn Meeting echoed fears that plans comply with the rules have been put on hold since the announcement of its delay.
Proposal would see harmonisation of two fund directives with a focus on aligning regulatory reporting.
The proposal came in response to a request from the European Commission to further postpone the Settlement Discipline Regime.
Global Custodian understands advanced discussions are underway among EU regulators to propose a delay, though confirmation of this could still be months away.