Regulatory Alerts2025-06-26
Final Report on Technical Advice on the Scope of CSDR Settlement Discipline
The European Securities and Markets Authority issued technical advice to the European Commission to specify the scope of settlement discipline rules under the CSDR Refit, aiming to alleviate regulatory burdens. The report defines exemptions for settlement fails not attributable to participants, such as CSD technical failures or payment system closures, and identifies non-trading operations like collateral mobilization that are excluded from penalties. ESMA recommends implementing these exemptions via ex-post claims for participant-caused fails and ex-ante filters for non-trading operations, with staggered application dates to ensure market readiness.
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