Postponement of entry into force of settlement discipline
On 8 May 2020, the European Commission issued a delegated regulation amending EU Delegated Regulation 2018/1229 regarding the effective date of the settlement discipline measures set out in the CSDR.
The new delegated regulation seeks to postpone the entry into force of EU Delegated Regulation 2018/1229 from 13 September 2020 to 1 February 2021.
Under the Regulation, the new settlement discipline regime will affect a wide range of market participants (Central Depositories, Central Counterparties, trading platforms, investment firms, credit institutions) and authorities, and will thus require extensive IT system upgrades, market testing and legal framework adjustments between the parties involved.
The Commission's new delegated regulation is subject to the European Parliament and the Council's right to object within three months of the notification date. Additionally, due to COVID-19, ESMA is currently working on a proposal to possibly delay the entry into force of the CSDR settlement discipline regime until 1 February 2022.