The Economic and Monetary Affairs Committee (ECON) of the EP has published its draft report on the Commission’s proposal for a Regulation on improving securities settlement and on central securities depositories (CSD Regulation). The report calls for a T+2  settlement cycle from SME growth markets, but says penalties and buy-in procedures should not be triggered until 15 days after a failed settlement in these markets. It recommends a central securities depository (CSD) should set up a separate legal entity to provide banking services, such as intraday liquidity. It says this will also help resolution and business continuity. Kay Swinburne, the rapporteur, has also introduced a requirement for CSDs to offer fully segregated accounts as well as omnibus accounts, so investors can choose the level of protection for their assets. It also calls on the Commission to progress its proposals for a Securities Law Directive as the CSD Regulation does not address all the important issues. (Source: ECON Draft Report on CSD Directive)