ICMA co-signs joint-association statement regarding the application of CSDR mandatory buy-ins


ICMA co-signs joint-association statement regarding the application of CSDR mandatory buy-ins

On 17 December 2021, ESMA issued a public statement indicating that NCAs are not expected to prioritise supervisory actions in relation to the application of the CSDR mandatory buy-in regime (MBI regime) when it comes into effect on 1 February 2022. The ESMA public statement follows agreement between the European Commission, the Council, and European Parliament at the 24 November 2021 trilogue meeting for the DLT Pilot Regime Regulation that the MBI regime should be decoupled from the CSDR Settlement Discipline package in order to delay its implementation. This is in light of the ongoing European Commission review of CSDR, with amendments to the regime and implementation timeline expected in the first half of 2022. The ESMA statement is intended to bridge the legislative gap until a new date of application has been passed into law.

Today, 22 December 2021, ICMA has co-signed a joint-association statement setting out a common interpretation of ESMA’s statement, which is that EU legislators do not expect market participants to take further action towards implementation of the mandatory buy-in requirements, including but not limited to the contractual obligations of Article 25 of RTS (EU) 2018/1229 on Settlement Discipline (CSDR RTS).

For further information, please contact andy.hill@icmagroup.org or lisa.cleary@icmagroup.org

ICMA Zurich

T: +41 44 363 4222
Dreikönigstrasse 8
8002 Zurich
ICMA London

T: +44 20 7213 0310
110 Cannon Street
London EC4N 6EU
ICMA Paris

T: +33 1 70 17 64 72
62 rue la Boétie
75008 Paris
ICMA Brussels

T: +32 2 801 13 88
Avenue des Arts 56
1000 Brussels
ICMA Hong Kong

T: +852 2531 6592
Unit 3603, Tower 2
Lippo Centre
89 Queensway, Admiralty
Hong Kong
info@icmagroup.org (general enquiries)
education@icmagroup.org (education enquiries)
Copyright © 2022 International Capital Market Association.