EU country representatives will meet this week to discuss a route through the Brussels legislative process to halt the arrival of the contentious rules, which market participants have warned would harm the region’s capital markets, and hit investors around the world.
The rules, which are due to come in to effect in February 2022, would force the banks and asset managers using EU securities depositories into a mandatory “buy-in” process if a trade fails, potentially squeezing market liquidity, raising costs and leaving them less able to hedge their risks. The rules cover all securities, including stocks and bonds.
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