SIX seals fintech partnership on central securities depositories regulation
The operator of the Spanish and the Swiss stock exchanges SIX has entered a partnership with AccessFintech to provide Central Securities Depositories Regulation (CSDR) eligibility and penalty data to their joint CSDR customers.
From February 2022 onwards, the European Union will implement CSDR measures which aim to ensure efficient settlement of trades in the EU markets. The regulation implies the introduction of a mandatory buy-in regime and application of penalties while market participants must inform about each trade throughout the trade's process. Trades not settling on time will be required to go through the CSDR process.
Through the partnership, market participants will be able to identify CSDR eligible trades and instruments, determine the market value to calculate the cash penalties, cash compensation, potential buy-in risk.
Commenting on the partnership, Heiko Stuber, senior product manager, financial information at SIX said: “Financial market participants need to ensure they do not fall foul of CSDR when it comes into full effect in February 2022. The industry needs to be gathering the information needed to test the impact of settlement fails in a “CSDR-compliant” regulatory environment. Our partnership with AccessFintech will allow the visualisation and categorisation of the most up to date reference and pricing data. It will be a key factor for being compliant and a powerful tool for managing risk across the trade lifecycle.”