ESMA preparing new RTS to further postpone CSDR Settlement Discipline to 1 February 2022

 

28 July 2020 ESMA has announced that it is working on a proposal to possibly delay the entry into force of the CSDR settlement discipline regime until 1 February 2022. ESMA confirms that this is due to the impact of the COVID-19 pandemic on the implementation of regulatory projects and IT deliveries by CSDs, and came as a request from the European Commission.
 
Of note, as well as identifying the implementation challenges being created by Covid-19, the European Commission states in its letter: Other stakeholders have also noted that market developments during this crisis would have been significantly worse in terms of available market liquidity (especially in the non-cleared bond and repo markets) if the mandatory buy-in regime was in place.
 
ESMA aims to publish the final report on further postponing the date of entry into force of the RTS on settlement discipline by September. Following the endorsement of the RTS by the European Commission, the Commission Delegated Regulation will then be subject to the non-objection of the European Parliament and of the Council.
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