Implementation of EU settlement discipline rules to be postponed
The European securities and markets authority (Esma) on Tuesday announced that it is working on a proposal to possibly delay the entry into force of the Central Securities Depositories Regulation's settlement discipline regime until 1 February 2022.
The regulatory technical standards on settlement discipline encompass a bunch of measures aimed at preventing and addressing settlement fails. It includes rules for the trade allocation and confirmation process, cash penalties on failed transactions, mandatory buy-ins, and monitoring and reporting settlement fails.
The demand for the delay, requested by the European commission, is related to the impact of the COVID-19 pandemic on the implementation of regulatory projects and IT deliveries.
This measure is subject to the non-objection of the European Parliament and of the Council until 8 August 2020.