CSDR - SDR – ESMA’s call to deprioritise buy-in supervision will be followed by the AMF


In its letter published on 17 December 2021*, ESMA took note of the latest developments concerning the future mandatory buy-in requirement.

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Based on the agreement between the three bodies (the Commission, Parliament and the Council) of 24 November 2021, which creates the possibility of starting settlement disciplines in two stages, ESMA requests national competent authorities not to focus their supervisory action on the mandatory buy-in application from 1 February 2022.

Indeed, given the European legislative process, it is likely that the new date will not be official before June 2022 since the next step (the proposal by ESMA of a new date for the mandatory buy-in) will not be able to start until the CSDR amendment comes into effect, in March 2022.

The letter from ESMA should therefore allow the different actors concerned to avoid systematically initiating buy-in procedures; a real relief for the industry, especially since the lack of answers to the many questions submitted to the Commission made it difficult to implement the mandatory buy-in in February.

The French regulator (the AMF) has already responded favourably to ESMA’s request in a press release dated 23 December 2021**. Let us hope that he will be followed by his peers!

** https://www.amf-france.org/en/news-publications/news/settlement-discipline-supervisory-approach-implementation-csdr-provisions