The European Securities and Markets Authority (ESMA has today announced that it is working on a proposal to possibly further delay the implementation of the CSDR settlement discipline regime until 1 February 2022.
This comes following an initial postponement to the date of entry to 1 February 2021, and is in light of the ongoing impacts of the COVID-19 pandemic on the implementation of the regulatory projects and IT deliveries by CSDs, as outlined in a letter t ESMA from the European Commission (EC).
In terms of the delay until 1 February 2021, the EC Delegated Regulation is still subject to the non-objection procedure by the European Parliament and Council until 8 August 2020, after which is can be published in the Official Journal of the EU, and enter into force three days later.
Regarding a further delay to 1 February 2022, upon the publication of ESMA’s final report to September on the additional postponement, and the ECs subsequent endorsement, the regulation will once again pass to the European Parliament and Council for non-objection.
From an ISLA perspective, we have already shared their recent developments with our CSDR working groups and streams, and will continue to monitor the situation closely as we appreciate the sensitivities around managing further implementation delays for our member firms and the broader industry.
Read ESMA’s full press release here
Read the EC’s letter to ESMA here
