CSDR Refit: the text has entered into force
Officially adopted on 13 December 2023 and published in the Official Journal of the European Union (EU) on 27 December, CSDR Refit (2023/2845) (Central Securities Depository Regulation review) entered into force on 16 January 2024.
Three years after the start of the CSDR review process, different parts of the original text are amended, and in particular settlement discipline:
The mandatory buy-in (MBI) may only target certain types of financial instruments and/or types of transactions among those eligible for the MBI and, above all, the European Commission (EC) will only be able to open discussions on the merits of its implementation if the system of penalties is not sufficiently effective and if the level of suspensions may impact EU financial stability.
The penalty system could also benefit from exemptions, in particular for transactions that would not be considered “trading”.
The regulation sets 17 January 2025 as the deadline for ESMA to provide its “draft regulatory technical standards” (RTS), which will be used to draw up the delegated texts necessary to specify the outline of the measures.