Deutsche Boerse to launch CSDR solution
01 August 2019 Frankfurt
Image: Shutterstock
Deutsche Boerse Group is making plans to launch a solution for the challenges posed by the Central Security Depository Regulation (CSDR).
The Deutsche Boerse Buy-in Agent service completes the group’s existing offering for market participants to increase settlement efficiency, one of the key objectives of CSDR.
This includes automated securities lending or the provision of one single pool of liquidity that allows for efficient settlement and collateral management across central-bank money and commercial-bank money settlement environments.
Deutsche Boerse noted that the regulation on settlement discipline for securities trading transactions obliges the buyer in a securities transaction to initiate a buy-in process against the seller should the settlement of a transaction fail after a certain period of time.
According to Deutsche Boerse, this requires a neutral third party who acts as a buy-in agent.
Meanwhile, the Deutsche Boerse Buy-in Agent Service aims to close the gap and enable market participants to comply with the European regulation that will come into force in Q2 2020.
Additionally, the solution is set to provide a “high level” of standardisation and automation to resolve the operational burden, which is associated with the new mandatory buy-in process.
Erik Müller, Deutsche Boerse group’s global head of clearing, said: “Since buy-in agent services are essential for the CSDR implementation, we developed this service in close cooperation with the market and our regulators.”
“We look forward to starting our service to best support our clients and the regulatory agenda.”
The Deutsche Boerse Buy-in Agent service completes the group’s existing offering for market participants to increase settlement efficiency, one of the key objectives of CSDR.
This includes automated securities lending or the provision of one single pool of liquidity that allows for efficient settlement and collateral management across central-bank money and commercial-bank money settlement environments.
Deutsche Boerse noted that the regulation on settlement discipline for securities trading transactions obliges the buyer in a securities transaction to initiate a buy-in process against the seller should the settlement of a transaction fail after a certain period of time.
According to Deutsche Boerse, this requires a neutral third party who acts as a buy-in agent.
Meanwhile, the Deutsche Boerse Buy-in Agent Service aims to close the gap and enable market participants to comply with the European regulation that will come into force in Q2 2020.
Additionally, the solution is set to provide a “high level” of standardisation and automation to resolve the operational burden, which is associated with the new mandatory buy-in process.
Erik Müller, Deutsche Boerse group’s global head of clearing, said: “Since buy-in agent services are essential for the CSDR implementation, we developed this service in close cooperation with the market and our regulators.”
“We look forward to starting our service to best support our clients and the regulatory agenda.”
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