ISLA and ICMA release best practice guidelines after CSDR implementation
02 February 2022 Europe
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The International Securities Lending Association (ISLA) has published its CSDR Penalties Best Practice Guidelines for the cash penalty regime.
Its release comes as the much-anticipated Central Securities Depositories Regulation (CSDR) settlement discipline regime went live on 1 February.
The guidelines aim to assist market participants with the implementation of CSDR ensuring that penalties are fairly distributed and applied to the party at fault.
The ISLA Market Practice Steering Group have developed and validated the best practice guidelines which include: recommendations on timeframe and minimum threshold for claims, netting of claims, partialling, liability cap, sale notifications and collateral movements.
The International Capital Market Association (ICMA) has also released its guiding practices in relation to the CSDR implementation, to aid the bond and repo markets.
Many of the opportunities discussed in the paper are covered in existing best practices, in particular the European Repo and Collateral Council (ERCC) Guide to Best Practice in the European Repo Market.
Alongside the paper, the ERCC has published a compilation of best practice recommendations in support of settlement efficiency, extracted from the guide and endorsed by the ERCC Committee.
Its release comes as the much-anticipated Central Securities Depositories Regulation (CSDR) settlement discipline regime went live on 1 February.
The guidelines aim to assist market participants with the implementation of CSDR ensuring that penalties are fairly distributed and applied to the party at fault.
The ISLA Market Practice Steering Group have developed and validated the best practice guidelines which include: recommendations on timeframe and minimum threshold for claims, netting of claims, partialling, liability cap, sale notifications and collateral movements.
The International Capital Market Association (ICMA) has also released its guiding practices in relation to the CSDR implementation, to aid the bond and repo markets.
Many of the opportunities discussed in the paper are covered in existing best practices, in particular the European Repo and Collateral Council (ERCC) Guide to Best Practice in the European Repo Market.
Alongside the paper, the ERCC has published a compilation of best practice recommendations in support of settlement efficiency, extracted from the guide and endorsed by the ERCC Committee.
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