settlement discipline – Page 2

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

ESMA consults on settlement guidelines

On 20 December, ESMA has published two Consultation Papers dedicated to CSDR (Regulation (EU) 909/2014) Settlement Discipline requirements:

The consultations are open until 20 February 2019.

You can find the consultations on the linked ESMA web pages.

EU Settlement Discipline Standards published

On 13 September 2018, the Final Regulatory Technical Standards (RTS) on Settlement Discipline have been published in the Official Journal of the European Union. The standards are mandated by the CSD Regulation and constitute part of a binding package providing the regulatory framework for all Central Securities Depositories of the European Economic Area.

The standards have been released by the European Commission on 25 May 2018 and published following the absence of any objection from the Council and the Parliament.

The date of publication in the Official Journal is essential for the calculation of the date of applicability of the standards. The compliance with the standards is required after a phase-in period of 24 months.

Please see the link to the full Regulatory Technical Standards as published in the Journal.

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

The European Commission issues the RTS on Settlement Discipline

The European Commission has just issued the Standards (RTS) on Settlement Discipline.

The Legislators (Council and Parliament) have one to three months of a (non-) objection period, i.e. to express their objection to the draft. The period can be extended for the maximum of here additional months, if the changes in comparison with the ESMA draft RTS have been sufficiently substantial for that.

RTS – annexes

ECSDA responds to ESMA on settlement discipline

19 Feb 2015 – What will be the market impact of the CSDR rules on settlement discipline? The draft measures issued by ESMA for consultation in December 2014 in the context of the CSD Regulation (CSDR) would create a settlement discipline framework which has the potential to substantially affect the way securities transactions are cleared and settled today.

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A very smooth transition to T+2

20 Oct 2014 – On 6 October 2014, 29 European markets* moved from a T+3 to a T+2 settlement cycle, in a “big bang” migration unprecedented in terms of it scale. Thanks to coordinated efforts by market players in all countries, the transition was very smooth and occurred without negative effects on settlement efficiency.

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ECSDA issues proposal on settlement discipline

22 May 2014 – European CSDs make concrete proposals for building a workable European settlement discipline framework. …