The European Securities and Markets Authority (ESMA) has published draft regulatory technical standards (RTS) on settlement discipline that the supervisory authority has to deliver for the implementation of the Central Securities Depository Regulation (CSDR).
The draft RTSs include details on:
- measures for preventing settlement fails through various functionalities including automated trading, partial settlement; and 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 three months to endorse the draft RTS, followed by a non-objection period of the European Parliament and the Council of the EU. The RTS will then enter into force two years after their publication in the Official Journal of the EU.
View ESMA issues technical standards on settlement discipline under CSDR, 1 February 2016