Greater and more harmonised use of partial settlement across the industry could improve the settlement rates – and thus decrease the penalties for firms under CSDR starting 1 February 2021. The recommendation comes from AFME, the Association for Financial Markets in Europe.
In a recently released 3-page paper, AFME provides its recommendations for partial settlement under the the settlement discipline regime of the Central Securities Depositories Regulation (CSDR) – regulation that is to come into force in a year, on 1 February 2021.
The new AFME recommendations fall under the three areas: partial hold and release, auto-partial settlement, and manual partials. It is referred to as a market practice document, “aimed at all market participants including buy-side clients, brokers and service providers such as intermediaries, central counterparties, custodians, banks and local agents”.