ESMA tells NCAs not to prioritize enforcement of CSDR buy-in rules

ESMA sent a letter to the European Commission (EC), copying the European Parliament and the Council, in order to address the uncertainty linked to the upcoming CSDR review and expected legislative proposal aiming inter alia at modifying the buy-in regime which will be published by the EC at the beginning of 2022 and the difficulties of market participants related to the implementation of the buy-in regime by 1 February 2022.

In particular, ESMA called for an urgent change in CSDR to allow postponing the application date of the buy-in regime, while noting the importance of the entry into of force of the rest of the settlement discipline regime measures (settlement fails reporting and cash penalties) on 1st February 2022 as planned.

To take into account the future amendment of the RTS on settlement discipline to postpone the date of application of the buy-in measures and to avoid potential additional costs linked to any additional later change of the systems and processes of market participants implementing these measures, ESMA would expect NCAs not to prioritise supervisory actions in relation to the application of the CSDR buy-in regime.

The full ESMA statement is available at https://www.esma.europa.eu/sites/default/files/library/esma70-156-5153_public_statement_on_buy-in.pdf

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