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Published date: 28 July 2020

ESMA is preparing a new RTS to further postpone CSDR settlement discipline

The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, is working on a proposal to possibly delay the entry into force of the CSDR settlement discipline regime until 1 February 2022. This is due to the impact of the COVID-19 pandemic on the implementation of regulatory projects and IT deliveries by CSDs and came as a request from the European Commission.

This measure would be additional to the delay foreseen in the ESMA Final Report on RTS on postponing the date of entry into force of the Commission Delegated Regulation (EU) 2018/1229 (RTS on settlement discipline) until 1 February 2021. This has been endorsed by the European Commission on 8 May 2020 and it is subject to the non-objection of the European Parliament and of the Council until 8 August 2020.

The RTS on settlement discipline cover measures to prevent and address settlement fails including:

  • rules for the trade allocation and confirmation process,

  • cash penalties on failed transactio