“A rigorous impact assessment” is high on the wish list of the International Capital Market Association (ICMA) as it responds to a survey by ESMA on which topics should be included in an upcoming review of CSDR.

It is not news that ICMA is highly critical of the CSDR settlement discipline regime, to be implemented by market participants by February. Particularly, it loathes the new mandatory buy-ins (“MBI”). 

“ICMA’s strong recommendation is ‘delay and review’. ICMA’s members feel that the MBI regime, as currently designed, would be extremely damaging for European capital market liquidity, efficiency, and stability, creating undue risks for market participants, in particular investors, and undermining the objectives of the capital markets union,” the association writes in a comment to its survey response to the European Securities and Markets Authority, ESMA, published last Friday.


An impact assessment would serve “… firstly to conclude whether a mandatory buy-in regime is warranted, and secondly, to the extent that it is, to inform the design of any framework,” ICMA comments. 

(Photo: Felix Koutchinski / Unsplash)