CSDR Refit – SDR Parliament formalised its first proposals
On October 11, 2022, the European Parliament’s rapporteur published his draft report on the proposal to revise the Central Securities Depositary Regulation (CSDR) by advocating the abolition of the mandatory buy-in. Even if it is not certain that it will be followed by the Parliament, it went further than the European Commission, which published its proposal on 17 March, and was moving towards a conditional implementation of the buy-in obligation (with an implementation date of November 2, 2025).
The EP working document also contains a first reference to a potential reduction in the settlement cycle. ESMA would be mandated to assess annually the benefits and challenges of a transition to T+1, following the current movement in the United States (planned for 2024).