Flashnews: On the way to CSDR 2


Regularly announced for soon and long awaited, the consultation on a revision of CSDR was finally published by the European Commission on 8 December 2020. A period of 8 weeks is now opened to answer the various questions asked by the EC.

The topics covered are varied but of course the one that will be the focus of all attention is the regime of settlement disciplines. Although it has not already entered into force, some questions are dedicated to it in the consultation. This is great news for the industry, which has been relentless in pointing out the disastrous consequences of the introduction of the “mandatory buy-in”.

The fact that the EC is seeking input from stakeholders on the need for a review of the regime, the changes to be made to it, is rather encouraging and could lead to hope for the abandonment of the “mandatory buy-in”. On the other hand, the timetable mentioned by the EC posits the entry into force of the revision of the CSDR during 2022, and most certainly beyond the date of 1 February 2022 (date of application of the settlement disciplines). Consequently, if no further action is taken by the EC, the parties to the transaction could face a temporarily mandatory buy-in. An issue that will certainly be reflected in the responses to the consultation.

Useful links:

07 December 2020: Article Cleared derivatives: extension of exemption and Brexit
02 December 2020: Article CSDR & BREXIT
27 November 2020: Article Uncleared derivatives: Yet another new text proposal
02 November 2020: Article Consultation on AIFMD review is launched
26 October 2020: Article The settlement disciplines regime (CSDR): SDR 2022
29 September 2020: Article EMIR Third country CCPs … and the UK
28 September 2020: Article CMU 2 new action plan
25 September 2020: Article New measures on digital finance
23 September 2020 : Article AIFMD Review: the process is ongoing
03 September 2020 : Article The settlement disciplines regime (CSDR): A likely short-lived date
26 August 2020: Article The settlement disciplines regime (CSDR): A likely short-lived date
28 July 2020: Article CSDR: Could the implementation of the future settlement discipline regime be pushed back by a year?