CSDR Refit: The adoption of the text is imminent


The EU Council announced on 27 June that a provisional agreement had been reached between the Parliament and the Council on the revision of CSDR*.

The trilogue phase, which began in the spring (during which the three European bodies compare their positions in order to reach a consensus), will have succeeded during the Swedish Presidency.

While the agreement still needs to be formally ratified, its broad outlines are already known, in particular those relating to the key measure of settlement disciplines: mandatory buy-in (MBI).

It should be remembered that the implementation of the original version (contained in CSDR) had been postponed to November 2025. With the agreement reached last week, it is clear that this vision of the mandatory buy-in will never see the light of day. Indeed, the new version may target types of financial instruments and/or types of transactions among those eligible for the MBI. And, above all, the Commission (EC) will only be able to open discussions on the merits of implementing the MBI if the system of penalties is not sufficiently effective and if the level of fails can impact the financial stability of the Union (the final text only takes up two of the conditions proposed by the EC and, moreover, makes them cumulative). Finally, the Commission will have to review the penalty system beforehand, starting with the penalty rates.

Other topics covered by CSDR Refit are the passport regime, the cooperation between regulators and banking-type ancillary services.

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*Central Securities Depositories Regulation