On Thursday 26 May, ISLA submitted a response to the European Commission (EC)’s Legislative Proposal, amending Regulation (EU) 909/2014 with regards to the Central Securities Depositories Regulation (CSDR).
In the response, ISLA focused on amendments to the Settlement Discipline Regime, which introduced a ‘two-step approach’ under which mandatory buy-ins could become applicable if the penalties regime alone does not improve settlement fails in the European Union.
ISLA also outlined a request for the removal of Securities Finance Transactions (SFTs) from the scope of the mandatory buy-in requirement, arguing the benefits that they bring to liquidity and the smooth functioning of EU capital markets.
ISLA’s response can be found here.
Visit ISLA’s Central Securities Depositories Regulation (CSDR) page to learn more.