The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, updated today its Questions and Answers (Q&As) regarding the implementation of the Central Securities Depositories Regulation (CSDR).
The latest Q&A relates to the implementation of the settlement discipline regime and clarifies that, for the purpose of initiating a buy-in process, the concept of “business days” under CSDR refers to the definition given in the rules of the securities settlement systems where the settlement fail occurred.
Background
Q&As are an important tool to promote common supervisory approaches and practices in the application of CSDR. This document is aimed at national competent authorities under the CSDR to ensure that, in their supervisory activities, their actions are converging along the lines of the responses adopted by ESMA. It should also help investors and other market participants by providing clarity on CSDR requirements.
The purpose of the CSDR is to harmonise certain aspects of the settlement cycle and settlement discipline, and to provide a set of common requirements for CSDs operating securities settlement systems across the EU. ESMA will continue to develop Q&As on the CSDR in the coming months and will review and update them where required.
