Tag: settlement

ECSDA issues its updated CSDR Penalties Framework

ECSDA issues its updated CSDR Penalties Framework

On 5 October 2021, the European Central Securities Depositories Association (ECSDA) publishes the updated version of the ECSDA CSDR Settlement Fails Penalties Framework.

The Framework is the effort of compliance with the Regulation and harmonisation of settlement penalties mechanisms across CSDs subject to CSDR or regulation alike and constitutes a market practice focusing on the settlement fails related requirements in the Central Securities Depositories (CSDs) Regulation and its Regulatory Technical Standards on Settlement Discipline, aiming at improving “the safety and efficiency of securities settlement”.

The current version of the document provides the changes in comparison with the previous one highlighted in grey and the assumptions pending ESMA and EC feedback in yellow.

ECSDA also makes public operational details of CSDs Settlement Discipline implementation via a questionnaire, regularly updated.

ECSDA CSDR Penalties Framework last updated 05/10/2021
ECSDA response to practical questions of CSD participants on CSDR penalties implementation – last updated 20/09/2021

 

ECSDA requests postponement of Settlement Discipline

ECSDA requests postponement of Settlement Discipline

On 8 June 2020, the European Central Securities Depositories Association (ECSDA) writes to request a postponement in the implementation of Settlement Discipline Regime (SDR), and Settlement penalties in particular, possibly by one year beyond the date of 1 February 2021.

We acknowledge that the European Commission recently adopted a decision to amend the date of entry into force of the Central Securities Depositories Delegated Regulation on Settlement Discipline (Regulation 2018/1229). In this letter, we aim to alert you about a set of new elements which affect the SDR timeline and might not yet have been considered by the Commission. We hope these elements will be taken into account during the scrutiny period of the amendment.

The letter calls for a holistic approach on the implementation timeline of the regulatory and mandatory projects. The approach may lead to the postponement of the mentioned projects by one year.

Full letter

ECSDA updates the draft CSDR Settlement Discipline Penalties Framework

ECSDA updates the draft CSDR Settlement Discipline Penalties Framework

On 3 July 2019, ECSDA published the updated version of the draft ECSDA CSDR Settlement Discipline Penalties Framework. The updated version of document can be found here.

The main chapters in the ECSDA Draft CSDR Settlement Discipline Penalties Framework include:

  1. ECSDA CSDR SDR Penalties Framework key considerations
  2. Penalties lifecycle and business days calendar
  3. Penalties scope
  4. Identification of the party to be penalised
  5. Reference/static data required for penalty calculations
  6. Penalties currencies conversion needs
  7. Calculation methods of the cash penalties
  8. Changes to previously calculated penalties
  9. Cross-CSD settlement fails
  10. Collection & Redistribution of penalties (Payment)
  11. Reporting

Other supporting information is also provided in the framework.

Updated ECSDA CSDR Penalties Framework

Updated ECSDA CSDR Penalties Framework

On 29 January, ECSDA published the updated version of the ECSDA CSDR Penalties Framework.

This version of the ECSDA Framework is based on the comments received during the public consultation in the summer 2018, further deep reflection among CSD experts and includes the confirmation of some working assumptions by relevant European authorities.

The “ECSDA CSDR Penalties Framework”, is the effort of compliance with the CSD Regulation. It aims at harmonisation of settlement penalties mechanisms across CSDs subject to CSDR or (potentially) equivalent regulation. It intends to provide a clear, safe and efficient Framework for settlement penalties solutions of CSDs, both the ones that will be using T2S penalties mechanism and other CSDs.

This updated version of the document will be presented and discussed with the main stakeholders on 18 February in Frankfurt. If you have comments on the Framework and an interest to attend the event, please let us know and we will check, if the capacity allows us to invite you to join.

Updated version 17 April 2020

ECSDA consults on the draft Settlement Fail Penalties Framework

ECSDA consults on the draft Settlement Fail Penalties Framework

9 July 2018

Today, ECSDA makes available the draft version of its future ECSDA Settlement Fail Penalties Framework (the Framework). The document aims at creating a harmonised and coherent set of rules and considerations for creation and operation of the Settlement Discipline Cash Penalties mechanisms by all European CSDs subject to the CSD Regulation (Regulation (EU) 909/2014) or equivalent provisions. It intends to provide a clear, safe and efficient Framework for settlement penalties mechanisms of the CSDs that have joined and that have not yet joined T2S platform.
The draft version of the Framework is based on numerous assumptions which need to be confirmed by the authorities and other relevant stakeholders. It is intended to evolve pursuant to clarification of assumptions, dialogue with relevant stakeholders and further ECSDA work.
Preliminary or partial views will be appreciated as soon as possible.

The open consultation on the early draft framework is running until 17 August at the latest.
Please send us your views, comments and proposals to info@ecsda.eu.

We thank you in advance for your attention and possible contribution to improving the ECSDA Settlement Fail Penalties Framework further.

Updated version 17 April 2020

ECSDA views on the Future of European Post-Trade

ECSDA views on the Future of European Post-Trade

Recently, the European Commission has launched a consultation on the Future of European Post-Trade, based on the conclusions of the European Post Trade Forum (EPTF). European CSDs thank the European Commission for the constructive and effective discussions at the EPTF, in which they have been deeply involved. In addition to the insight provided in the report resulting from the forum, Central Securities Depositories (CSDs) note several trends in their immediate ecosystem which are important to post-trade more widely.

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