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Deutsche Börse takes on new buy-in agent role

Europe’s new CSD regulation introduced the necessity of a neutral agent to perform a buy-in service in the frequent situations when securities trades fail to settle. But who should do the job? Now, Deutsche Börse says okay then.

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By deciding to put up its new buy-in agent service, Deutsche Börse seeks to help the securities market actors comply with European rules that will come into force a year from now: in the third quarter of 2020.

Automation against the work burden

The need for a new, neutral, third-party agent stems from the Central Securities Depositories Regulation (CSDR), which will force the buyer in a securities transaction to initiate a buy-in process against the seller if the settlement has not succeeded within certain time.

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“In addition, the solution provides a high level of standardization and automation in order to resolve the operational burden which is associated with the new mandatory buy-in process”, says Deutsche Börse, in its news release on the matter.

Seller pays

According to the firm, the service encompasses the accepting of buy-in requests from registered clients, sourcing the securities in automated auctions, and delivering the securities on the same day to the clients’ account. All costs are then charged to the seller.

Deutsche Börse also lists a menu of added services, such as notification management.

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