ICMA has developed FAQs and Best Practice Recommendations for CSDR penalty regimes….
1 February 2022 ICMA, through its CSDR Settlement Discipline Working Group, has developed a list of Frequently Asked Questions (FAQs) and Best Practice Recommendations intended to support implementation of the CSDR Penalty regimes for the bond and repo markets, when it goes live on 1 February 2022. The FAQs and best practice cover a range of issues, such as scope, invoicing and billing, restitution, as well as the confirmation and allocation process under Article 6 of CSDR. They are also intended to be aligned with, and complementary to, the ECSDA Penalty Framework and the AFME Best Practice for Bilateral Claims.
The ICMA FAQs and Best Practice are intended to be living documents and will be updated as new issues are raised following go-live, or in response to regulatory clarification. These also represent ICMA’s commitment to establishing best practice for international bond and repo markets as well as underpinning market resilience and efficiency.