1 February 2021 it is – the coming into force of the settlement discipline incentives and mandatory buy-ins under CSDR. While this is no big surprise, some may take a breath of relief as the European Commission has now established the delay proposed by ESMA.
[For a quick backgrounder on the CSDR Settlement Discipline, AFME has published this four-page folder.]
Whether second to covid-19 or not, the work to comply with CSDR is a top priority for post-trade people across the financial industry in 2020. We have noted the controversy many times – here some of our articles on the settlement discipline regime that it includes.
Originally scheduled for 13 September 2020, it has been challenged both by complaints from the financial industry about expected damage that it could bring, and by the coronavirus crisis. ESMA agreed to propose a delay until 1 February 2021, and it is this delay that is now definitely confirmed by the European Commission.
Securities Lending Times is among the media noting that market actors, including the International Capital Market Association (ICMA), are not finding the February 2021 plan feasible either but vow to push for further amendments of the buy-ins.