ESMA Postpones Application of the CSDR Settlement Discipline Regime

The European Securities and Markets Authority (ESMA) has today published a Final Report actioning the postponement of the Central Securities and Depositories Regulation (CSDR) settlement discipline regime RTS (which includes the mandatory buy-in regime), until 1 February 2021.

CSDR No. 909/2014/ EU is a crucial piece of regulation implemented as an outcome of the financial crisis during 2007-2008, to ensure that the financial system becomes more resilient by strengthening the core infrastructures.

The regime will affect a wide range of market participants (CSDs, CCPs, trading venues, investment firms, credit institutions) and authorities, and will require significant IT system changes, market testing and adjustments to legal arrangements between the parties concerned.

In the Report, ESMA acknowledges amongst other things, the considerable aforementioned developments required, and considers it appropriate to provide for more time before the start of the application of the new settlement discipline requirements under the RTS.

This has now been submitted to the European Commission, and ESMA is submitting the draft regulatory technical standards presented in the Annex for endorsement in the form of a Commission Delegated Regulation (a legally binding instrument applicable in all Member States of the European Union). Following the endorsement of the RTS by the European Commission, the Commission Delegated Act will be sent to the European Parliament and Council for final scrutiny.

To access a copy of the Final Report, please click here

ISLA welcomes ESMA’s announcement of a request to postpone implementation of CSDR settlement disciplines, and will continue to collaborate with other trade associations in:-

    • Clarifying the SFT requirements of this regulation;
    • Requesting guidance from ESMA on points that its members are unclear on;
    • Providing members with guidance on best practice.

If you are not part of the CSDR work groups or streams, or would like more information, please visit our CSDR page or contact


Back to Newsroom


Related News & Insights