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CSDR Settlement Discipline Regime Implementation: Trade associations joint letter

BRUSSELS, 11 March 2021 – The EBF and 14 trade associations¹ representing a wide range of stakeholders in the European and global financial markets wrote to the European Commission and ESMA raising concerns about the implementation of the mandatory buy-in requirement under the EU’s CSDR² Settlement Discipline Regime. The current mandatory buy-in requirement, part of CSDR Settlement Discipline, which is due to come into force on 1 February 2022, is widely felt to require a thorough reassessment as to its appropriateness and is currently the subject of a European Commission Review. Any proposed legislative amendments to the mandatory buy-in requirement are not expected until the end of 2021.

Given the significant global implementation effort required to support the CSDR mandatory buy-in requirement, the associations suggest that a far more robust approach would be to make the required revisions to the mandatory buy-in regime arising from the Review before attempting implementation. Accordingly, the letter asks the European Commission for clarity on the Review and implementation schedule of CSDR-SD at the earliest opportunity.

¹ The contributing associations are AFME, AGC, ASSOSIM, EACB, EAPB, EBF, EDMA, EFAMA, EVIA, FIA, FIA EPTA, ICI GLOBAL, ICMA, ISDA and ISLA.

² Regulation (EU) No 909/2014 and the Commission Delegated Regulation (EU) 2018/1229 (together, ‘CSDR’).