JOINT ASSOCIATION LETTER
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Joint Association Letter on the Implementation of the CSDR Settlement Discipline Regime
BRUSSELS, 16 July 2021 – EBF together with fifteen trade associations, representing buy-side, sell-side and market infrastructures, wrote to ESMA and the European Commission regarding the timeline for implementation of the mandatory buy-in rules as part of the CSDR Settlement Discipline Regime.
The Joint Associations welcome the Report from the Commission on the CSDR Review published in July 2021 and fully support the Commission’s intention to consider amendments to the mandatory buy-in regime, subject to an impact assessment.
In light of this, the Joint Associations request ESMA and the Commission to take action to ensure that the mandatory buy-in rules for non-CCP transactions are not subject to application on 1 February 2022, when the relevant RTS is currently set to enter into force, and to provide clarity to market participants on the matter on an urgent basis.
The Joint Associations remain committed to further improving settlement efficiency in Europe’s capital markets.
More information:
Jacopo Borgognone, Policy Adviser – Financing Growth j.borgognone@ebf.eu
About the European Banking Federation:
The European Banking Federation is the voice of the European banking sector, bringing together national banking associations from across Europe. The EBF is committed to a thriving European economy that is underpinned by a stable, secure and inclusive financial ecosystem, and to a flourishing society where financing is available to fund the dreams of citizens, businesses and innovators everywhere.
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CSDR Settlement Discipline Regime Implementation: Trade associations joint letter
BRUSSELS, 11 March 2021 – The EBF and 14 trade associations1 representing a wide range of stakeholders in the European and global financial markets wrote to the European Commission and ESMA raising concerns about the implementation of the mandatory buy-in requirement under the EU’s CSDR2 Settlement Discipline Regime. The current mandatory buy-in requirement, part of CSDR Settlement Discipline, which is due to come into force on 1 February 2022, is widely felt to require a thorough reassessment as to its appropriateness and is currently the subject of a European Commission Review. Any proposed legislative amendments to the mandatory buy-in requirement are not expected until the end of 2021.
Given the significant global implementation effort required to support the CSDR mandatory buy-in requirement, the associations suggest that a far more robust approach would be to make the required revisions to the mandatory buy-in regime arising from the Review before attempting implementation. Accordingly, the letter asks the European Commission for clarity on the Review and implementation schedule of CSDR-SD at the earliest opportunity.
1 The contributing associations are AFME, AGC, ASSOSIM, EACB, EAPB, EBF, EDMA, EFAMA, EVIA, FIA, FIA EPTA, ICI GLOBAL, ICMA, ISDA and ISLA.
2 Regulation (EU) No 909/2014 and the Commission Delegated Regulation (EU) 2018/1229 (together, ‘CSDR’).
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]]>EBF advisor: Daniele De Gennaro
Publication date: 14 September 2017
Key points:
The European Securities and Markets Authority (ESMA) has published a consultation paper on internalised settlements, regarded as a very important issue for EBF members in the context of the implementation of the regulation on Settlement and Central Securities Depositories, known as CSDR. EBF fully appreciates the clarifications proposed by ESMA in this paper.
At the same time, the EBF believes there is still need for some further refinement on certain points, both conceptually and technically. The EBF sees two major issues in the ESMA proposed guidelines, and two other major issues that are not covered by the consultation paper. It also has a set of other detailed comments.
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]]>Publication date: 30 June 2016
Introduction Comments
The EBF notes that this consultation is very tightly focused on CSD rules and procedures in the event of a default/insolvency of a direct participant in the CSD. This is clearly an important and relevant focus.
However, it is also important to note that a CSD, as a central safe-keeper, and as operator of a settlement system, is impacted by an insolvency of any trading party in the issuance and custody chains (i.e. by the insolvency of issuers, and of trading parties/investors that use an intermediary to access the CSD).
It is also important that CSD rules and procedures (with relation to insolvency procedures, but also broadly, such as with relation to settlement discipline) take into account the possibility that an issuer or investor, or indeed another intermediary in the issuance and custody chains, may enter into insolvency, and that intermediaries (issuer agents, custodians) may have to manage the insolvency of their clients.
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Every Friday at noon you can receive the EBF Weekly + Financial Regulation Agenda. This agenda presents an overview of upcoming European and international meetings and conferences in financial regulation, as well as important general financial and economic events and key EBF meetings for the week ahead. CLICK HERE TO SUBSCRIBE
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