02 June 2022
The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, today published a Final Report on amending the regulatory technical standards (RTS) on settlement discipline to postpone the application of the CSDR mandatory buy-in regime for three years.
The proposed amendment is based on the expected changes to the CSDR buy-in regime presented in the Commission’s legislative proposal for the CSDR Review and on the amendment made to CSDR through the DLT Pilot Regulation published today, which allows ESMA to propose a later start date for the CSDR buy-in regime.
The CSDR settlement discipline regime has started applying on 1 February 2022.
In December 2021, ESMA published a statement to clarify that while the application and supervision of most CSDR settlement discipline requirements, in particular the settlement fails reporting and the cash penalties regimes, would go ahead as planned, ESMA expects NCAs not to prioritise supervisory actions in relation to the application of the buy-in regime.
ESMA’s statement will remain in place until the buy-in regime is formally suspended.
Next steps
This draft RTS is sent to the European Commission for endorsement in the form of a Commission Delegated Regulation. Following the endorsement by the European Commission, the Commission Delegated Regulation will then be subject to the non-objection of the European Parliament and of the Council.