Industry associations for CSDs and CCPs are urging the European Commission to limit changes to the Settlement Finality Regulation (SFR), according to their responses to the ongoing consultation.
In its response, the European Central Securities Depositories Association (ECSDA) argues that the current framework already provides clarity for post-trade processes, stating that it “has already clearly defined all relevant aspects” for central securities depositories. The association adds that settlement finality is a “core pillar” of financial stability, and warns that revisions should not undermine existing legal certainty.
Focused approach
The European Association of CCPs (EACH) takes a similar position, calling for a focused approach to specific issues rather than a broad redesign of the framework. Its response highlights areas such as participation, system designation and the definition of finality as points where clarification could be considered.
Both associations emphasise that changes to key concepts should be approached with caution, given their link to insolvency law and risk management in clearing and settlement.
Wider market fragmentation
ECSDA also notes that other barriers affecting post-trade efficiency in Europe remain unresolved, suggesting that changes to the settlement finality framework alone would not address wider market fragmentation.
