CSDR: Postponing of the settlement discipline
On 4 February 2020, ESMA published its final report on draft regulatory technical standards (RTS) on postponing the date of entry into force of Commission Delegated Regulation EU 2018/1229 (the RTS on settlement discipline) to 1 February 2021.
The current date of entry into force of the RTS on settlement discipline is 13 September 2020. The new settlement discipline regime under the Central Securities Depositories Regulation will affect a wide range of market participants and authorities, and will require significant IT system changes, market testing and adjustments to legal arrangements between the parties concerned.
ESMA is proposing to delay the entry into force of the RTS on settlement discipline, having taken into account the additional time needed for the establishment of essential features for the functioning of the settlement discipline regime, such as the necessary ISO messages, the joint penalty mechanism of central securities depositories that use a common settlement infrastructure, and the need for proper testing of the new functionalities.