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


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