ISLA forms CSDR working group
26 July 2018 London
Image: Shutterstock
The International Securities Lending Association has formed a Central Securities Depositories Regulation (CSDR) working group. The working group met for the first time on 19 July.
The group will be chaired by James Montgomerie, executive director of Morgan Stanley.
It was developed in recognition that ISLA needs to consider settlement efficiencies, notably in readiness for CSDR.
Early this year, ISLA undertook a settlement survey of its membership, which highlighted a number of settlement inefficiencies including the manual process of Supplemental Security Income management, manual pre-matching processes and counterparty shorts.
ISLA explained that some of the main objectives of the group will be to provide the market with clear guidance around the application of CSDR in the securities finance market.
It said: “This may include the preparation of best practice for the application and management of the regulation, as well as assistance with interpretation.”
The working group will also be looking at identifying settlement inefficiencies in European Securities financing transactions and seeking potential solutions.
This will include the identification of common manual processes and potential improvements/automations, as well as a review of TARGET2-Securities functionality and reasons why this has not been deployed more broadly.
ISLA’s 9th Post Trade Conference, which is on the 4th October this year, will dedicate much of its agenda to this topic.
The group will be chaired by James Montgomerie, executive director of Morgan Stanley.
It was developed in recognition that ISLA needs to consider settlement efficiencies, notably in readiness for CSDR.
Early this year, ISLA undertook a settlement survey of its membership, which highlighted a number of settlement inefficiencies including the manual process of Supplemental Security Income management, manual pre-matching processes and counterparty shorts.
ISLA explained that some of the main objectives of the group will be to provide the market with clear guidance around the application of CSDR in the securities finance market.
It said: “This may include the preparation of best practice for the application and management of the regulation, as well as assistance with interpretation.”
The working group will also be looking at identifying settlement inefficiencies in European Securities financing transactions and seeking potential solutions.
This will include the identification of common manual processes and potential improvements/automations, as well as a review of TARGET2-Securities functionality and reasons why this has not been deployed more broadly.
ISLA’s 9th Post Trade Conference, which is on the 4th October this year, will dedicate much of its agenda to this topic.
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