The new legislation looks to create rules to ensure transfers of crypto-assets will be traced and identified to prevent money laundering, terrorist financing, and other crimes.
Regulations such as DORA and CSDR are combining in a way that is forcing many to make some tough choices about who carries out these post-trade functions.
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.
The UK has potential to reinvent its image post-Brexit, despite facing passporting challenges in the short-term, say experts.
The new chair of ESMA will take up the role in April 2021 once Steven Maijoor steps down.
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.
As temporary permissions run out at the end of the year, managers are expected to seek out Supermancos in order to market their funds in Europe.