AFME publishes position paper on CSDR’s mandatory buy-in rules

AFME has published today a position paper highlighting the risk of mandatory buy-ins to Europe’s economic recovery from the Covid-19 crisis, and calling for this measure to be removed from the upcoming Central Securities Depositories Regulation (CSDR). According to the paper, the mandatory buy-in rules will negatively impact the market by:

  • Increasing costs for issuers and investors
  • Reducing investor appetite, in particular for SME securities
  • Removing liquidity from European markets

AFME believes this is a disproportionate measure to address the small percentage of trades that fail. The trade association is calling for a more pragmatic, discretionary approach to the buy-in regime.

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