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Publication of Level 2 measures for CSDR

01/01/2017

On 10 March 2017, a package of regulatory technical standards (RTS) adopted by the European Commission on 11 November 2016 for CSDR have been published in the Official Journal of the European Union.

On 10 March 2017, a package of regulatory technical standards (RTS) adopted by the European Commission on 11 November 2016 for CSDR have been  published in the Official Journal of the European Union. This included the RTS for the parameters for the calculation of cash penalties for settlement fails and the operations of CSDs [central securities depositories] in host Member States.

The regulatory initiative is a important component of CSDR’s framework for Settlement Discipline, as outlined in Article 7 of CSDR, alongside the requirement for CSDs and CCPs to monitor and report participants that consistently and systematically fail transactions , and a mandatory buy-in regime. The objective of the cash penalties regime is to create a standardized, harmonized penalty regime across the EU to be applied in the event of settlement fails.

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