AFME, ISDA and ISLA among trade bodies to deliver the concise message of delay the settlement discipline regime.
Tag: European Commission
With just seven months to go until the go-live of SDR, market participants have grown increasingly worried that they will be unable to make the necessary changes to their operations to meet the rules.
ESMA have suggested the scope of the rules should include oversight of T2S and of third-country CSDs operating settlement services in the EU.
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 majority of industry bodies and market participants will most likely focus their feedback on the settlement penalties and the buy-in components of CSDR.
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 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.
A potential AIFMD passport and UK equivalence could smooth the way for UK custodians to expand their depositary services across the EU market.
Long-awaited report on the Capital Marks Union sets out recommendations for the regulation while also addressing lingering issues in the post-trade industry.