ESMA published draft regulatory technical standards on settlement discipline which ESMA has to deliver for the implementation of the Central Securities Depository Regulation (CSDR).
ESMA’s RTS includes details on:
measures for preventing settlement fails, through various processes and functionalities, such as:
hold and release mechanism.
measures for monitoring and addressing settlement fails, in particular:
the cash penalties mechanism; and
the buy-in process.
The European Commission has now three months to endorse the RTS, followed by a non-objection period of the European Parliament and Council. These rules will then enter into force two years after their publication in the Official Journal of the European Union. This will give enough time to relevant stakeholders to implement the changes needed to comply with the CSDR.
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