Featured Product

    EC Publishes Regulatory Technical Standards on Settlement Discipline

    September 13, 2018

    The Commission Delegated Regulation (EU) 2018/1229, which supplements the Central Securities Depositories (CSD) Regulation (EU Regulation No 909/2014) with regard to the regulatory technical standards on settlement discipline, has been published in the Official Journal of the European Union. The regulatory technical standards, including all mandatory buy-in requirements, will enter into force on September 13, 2020.

    The provisions in EU Regulation 2018/1229 deal with measures to prevent and address settlement fails and to encourage settlement discipline, by monitoring settlement fails, by collecting and distributing cash penalties for settlement fails, and by specifying the operational details of the buy-in process. This regulation also defines a number of terms, in an effort to ensure the consistent application of CSD Regulation. This regulation is based on the draft regulatory technical standards submitted by ESMA to EC, pursuant to the procedure in Article 10 of Regulation (EU) No 1095/2010. ESMA has conducted open public consultations on these draft regulatory technical standards, analyzed the potential related costs and benefits, requested the opinion of the Securities and Markets Stakeholder Group, and worked in close cooperation with the members of the European System of Central Banks for developing these regulatory standards.

    The key objective of the CSD Regulation is to increase the safety and efficiency of securities settlement and settlement infrastructures (CSDs) in EU by providing, among others, for the following:

    • Shorter settlement periods
    • Settlement discipline measures (mandatory cash penalties and ‘buy-ins’ for settlement fails)
    • An obligation regarding dematerialization for most securities
    • Strict prudential and conduct of business rules for CSDs
    • Strict access rights to CSD services
    • Increased prudential and supervisory requirements for CSDs and other institutions providing banking services ancillary to securities settlement

     

    Related Links

    Effective Date: September 13, 2020

    Keywords: Europe, EU, PMI, Securities, CSDR, CSD, Regulatory Technical Standards, Regulation 2018/1229, EC

    Related Articles
    News

    PRA Consults on Implementation of Certain Provisions of CRD5

    PRA, via the consultation paper CP12/20, proposed changes to its rules, supervisory statements, and statements of policy to implement certain elements of the Capital Requirements Directive (CRD5).

    July 31, 2020 WebPage Regulatory News
    News

    EIOPA Report Identifies Key Financial Stability Risks for Insurers

    EIOPA published the financial stability report that provides detailed quantitative and qualitative assessment of the key risks identified for the insurance and occupational pensions sectors in the European Economic Area.

    July 30, 2020 WebPage Regulatory News
    News

    EBA Publishes Risk Dashboard for First Quarter of 2020

    EBA published its risk dashboard for the first quarter of 2020 together with the results of the risk assessment questionnaire.

    July 30, 2020 WebPage Regulatory News
    News

    EBA Issues Updates on Stress Test Exercise for Banks in EU

    EBA announced that the next stress testing exercise is expected to be launched at the end of January 2021 and its results are to be published at the end of July 2021.

    July 30, 2020 WebPage Regulatory News
    News

    PRA Proposes Guidance Related to Matching Adjustment under Solvency II

    PRA published the consultation paper CP11/20 that sets out its expectations and guidance related to auditors’ work on the matching adjustment under Solvency II.

    July 30, 2020 WebPage Regulatory News
    News

    MAS Issues Guidance on Dividend Distributions by Banks

    MAS published a statement guidance on dividend distribution by banks.

    July 30, 2020 WebPage Regulatory News
    News

    APRA Updates Guidance on Capital Management for Banks

    APRA updated its capital management guidance for banks, particularly easing restrictions around paying dividends as institutions continue to manage the disruption caused by COVID-19 pandemic.

    July 29, 2020 WebPage Regulatory News
    News

    FSB Report Reviews Macro-Prudential Framework and Tools in Germany

    FSB published a report that reviews the progress on data collection for macro-prudential analysis and the availability and use of macro-prudential tools in Germany.

    July 29, 2020 WebPage Regulatory News
    News

    EBA Urges Firms to Finalize Preparations for End of Brexit Transition

    EBA issued a statement reminding financial institutions that the transition period between EU and UK will expire on December 31, 2020; this will end the possibility for the UK-based financial institutions to offer financial services to EU customers on a cross-border basis via passporting.

    July 29, 2020 WebPage Regulatory News
    News

    SRB on Operational Continuity in Resolution and FMI Contingency Plans

    SRB published guidance on operational continuity in resolution and financial market infrastructure (FMI) contingency plans.

    July 29, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5606