ECB recommends scrapping MBI regime, or at least excluding SFTs as part of CSDR review

The International Securities Lending Association (ISLA) flagged that the European Central Bank (ECB) has published their opinion as part of the ongoing Review of the European Commission’s Proposal to amend the Central Securities Depositories Regulation (CSDR).

The ECB have advised that the entire application of the Mandatory Buy-in (MBI) regime should be removed, stating that they would cause “a significant interference in the execution of securities transactions and the functioning of securities markets” also highlighting the “non-availability of a buy-in agent” in the market.

In addition to the above, the ECB have also suggested excluding Securities Finance Transactions (SFTs) from the scope of MBIs, were they to come into effect. This contribution from the ECB could sway discussions at the European Parliament and Council, where discussions are expected to resume in September.

Read the ECB’s full opinion

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