EU Delays Securities Settlement Discipline Rules to 2021

EU Regulatory Technical Standards postponing the implementation deadline of the settlement discipline regime under the Central Securities Depositories Regulation have been published in the Official Journal of the European Union. The RTS delay the application date of the settlement discipline rules from September 13, 2020 to February 1, 2021, by amending the existing RTS (Commission Delegated Regulation (EU) 2018/1229). The RTS cover measures for preventing settlement fails through automated matching, a hold and release mechanism and partial settlement. The RTS also provide measures for monitoring and addressing settlement fails, such as a mechanism for cash penalties and a buy-in process.

ESMA announced on July 28, 2020 that the EU is considering further delaying the settlement discipline rules to February 2022 due to the impact of COVID-19, however, ESMA has not yet published its final proposed draft RTS to implement the delay.

View the amending Commission Delegated Regulation (2020/1212).

View details of ESMA's announcement of a potential further delay to the settlement discipline rules.

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