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.
Tag: European Commission
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.
The association has urged the regulator to take ‘a holistic approach’ to postponing the Settlement Discipline Regime (SDR) by at least a year.
The decision from the European Commission means the rules will come into force from 3 September 2020.
The endorsement comes two months after the ESMA stated it would postpone enforcing CSDR's settlement discipline regime following an industry-wide lobby.