The European Commission has published an inception impact assessment as part of its work on the review of the Central Securities Depositories Regulation(CSDR).
As part of the review, the commission has confirmed Q4 2021 as the timing of the proposal.
The review, which will remain open until 5 April, will assess how the EU rules on central securities depositories (CSDs) are working.
The EU says this will look into how CSDs are able to operate in different countries across the EU, how requests to use their services are handled, and whether there are other substantive barriers to competition in this sector that need to be addressed.
Depending on its findings, the commission may propose certain changes to the rules.
CSDR creates measures for the authorisation and supervision of EU CSDs and aims to create a common set of business conduct standards within the EU.
After the review closes, the commission will summarise the input received in a report explaining how the input will be taken on board and, if applicable, why certain suggestions can't be taken up.
CSDR’s settlement discipline regime is expected to go live in February 2022 and is expected to bring in mandatory buy-ins in response to failures to settle trades, along with cash penalties.
In February this year, the European Association of CCP Clearinghouses (EACH) called for a delay to the settlement discipline regime.
The EC opened itself up to feedback on the regulation’s terms in December with a deadline for comment of 2 February.
According to the Association for Financial Markets in Europe, the CSDR mandatory buy-in element of the settlement discipline regime presents a “significant risk to Europe’s recovery from the COVID-19 crisis and will likely disproportionately impact on small and medium-sized enterprises and less liquid securities”.
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