In a new study, ESMA analyses how the use of synthetic prime brokerage allowed the family office to remain ‘largely invisible’ to regulators.
The regulator warns that there could be a potential mismatch between asset liquidity and redemption timeframe.
Delay suggested to avoid a collision with the final EC legislative proposal for the review of CSDR and the expected entry into force of the current CSDR settlement discipline regime.
ESMA have suggested the scope of the rules should include oversight of T2S and of third-country CSDs operating settlement services in the EU.
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.