Tag: penalties

ESMA requests the Commission to postpone Settlement Discipline to 1 Feb.2021

ESMA requests the Commission to postpone Settlement Discipline to 1 Feb.2021

On 4 February, the European Securities Market Authority, ESMA, has published the Final Report “CSDR RTS on Settlement Discipline – postponed entry into force”.

The report provides explanations for the proposal of delay of the implementation of the RTS on settlement discipline, initially foreseen on 13 September 2020.

ESMA acknowledges the need for relevant stakeholders to be provided with more time to prepare the implementation of the Settlement Discipline.

This is due in particular to:

  • New developments needed for the go live of the T2S penalty mechanism (22 November 2020)
  • Necessary IT system changes for the updating of ISO messages (22 November 2020)
  • Market testing
  • Adjustments to legal arrangements between the parties concerned (see Article 20 of RTS)
  • Developments related to the implementation of the mandatory buy-in process, foreseen by the CSDR settlement discipline

Considering all the above-mentioned elements, ESMA officially proposes (see Annex II of the report) the postponement of the date of entry into force of the RTS on settlement discipline until 1 February 2021.

Next steps:

  • This amendment to the RTS will be submitted to the European Commission for review and endorsement.
  • This will be followed by the non-objection period by the European Parliament and Council before the publication in the EU Official Journal and subsequently entry into force.