Industry Updates

ESMA prepares to further delay CSDR settlement regime

Delayed until 1 February 2022

George Geddes

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The European Securities and Markets Authority (ESMA) is working on a proposal to possibly delay the enforcement of the Central Securities and Depositaries Regulation (CSDR) settlement discipline regime.

The deadline could be extended by 12 months until 1 February 2022.

ESMA proposed the postponement following the likely implications the coronavirus turmoil had on those in the progress of becoming compliant with the regime.  

The regulator said in a statement: “[The delay] is due to the impact of the COVID-19 pandemic on the implementation of regulatory projects and IT deliveries by CSDs.”

This would be the second postponement by ESMA in 2020 having also pushed back the introduction of the regime earlier this year to 1 February 2021.

ESMA aims to publish a final report on further postponing the date of entry into force of the regime by September.

‘More questions than answers’: CSDR impact divides ETF industry

CSDR was initially set to be introduced in September. The regime is designed to harmonise settlement standards across the European market.

During ETF Stream’s webinar in May which focused on European ETF regulation, Tara O’Reilly, partner and co-head of asset management and investment funds group at Arthur Cox, predicted the previous deadline of February 2021 would be a tough deadline to implement by.

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