EC Response to Joint Associations’ Letter on CSDR Settlement Discipline Regime

On 11 March 2021, ISLA in association with 14 trade associations¹ representing a wide range of stakeholders in the European and global financial markets, wrote to the European Commission and ESMA raising concerns about the implementation of the mandatory buy-in requirement under the EU’s CSDR² Settlement Discipline Regime.

The current mandatory buy-in requirement, part of CSDR Settlement Discipline, which is due to come into force on 1 February 2022, is widely felt to require a thorough reassessment as to its appropriateness and is currently the subject of a European Commission Review. Any proposed legislative amendments to the mandatory buy-in requirement are not expected until the end of 2021.

We have now received a response from the EC, and we are encouraged that our concerns have been noted at this time. ISLA’s working groups will continue to develop best practices and work towards a solution for Article 25 requirements, through its various work streams.

The Joint Associations’ letter can be found here.

The EC’s response can be viewed here. 

1. The contributing associations are AFME, AGC, ASSOSIM, EACB, EAPB, EBF, EDMA, EFAMA, EVIA, FIA, FIA EPTA, ICI GLOBAL, ICMA, ISDA and ISLA.
2. Regulation (EU) No 909/2014 and the Commission Delegated Regulation (EU) 2018/1229 (together, ‘CSDR’).


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