European Council and Parliament reach agreement on CSDR Refit
28 June 2023 On 27 June, the European Council and Parliament reached a provisional interinstitutional agreement on the CSDR Refit. A critical element of the Refit is the revised settlement efficiency regime, in particular the highly controversial application of the mandatory buy-ins in the event of settlement fails. ICMA has long opposed the introduction of a mandatory buy-in (MBI) regime in the EU bond markets, and challenged their inclusion in the original CSD Regulation, pointing to the risks to market liquidity and stability, and noting that existing, contractual buy-ins already provided an effective and well-designed tool for managing settlement risk. Despite being passed into law in 2014, mandatory buy-ins have never been implemented.