On Thursday 26 May, ISLA submitted a response to the European Commission (EC)’s Legislative Proposal, amending Regulation (EU) 909/2014 with regards to the Central Securities Depositories Regulation (CSDR).
In the response, ISLA focused on amendments to the Settlement Discipline Regime, which introduced a ‘two-step approach’ under which mandatory buy-ins could become applicable if the penalties regime alone does not improve settlement fails in the European Union.
ISLA also outlined a request for the removal of Securities Finance Transactions (SFTs) from the scope of the mandatory buy-in requirement, arguing the benefits that they bring to liquidity and the smooth functioning of EU capital markets.
ISLA’s response can be found here.