On June 30, 2015, ESMA published proposed draft RTS on the buy-in process, including the timeframe for delivery of financial instruments which ESMA is required to prepare under the EU Central Securities Depositories Regulation. The CSDR came into force on September 17, 2014. ESMA consulted in December 2014 on the buy-in process, noting that there is currently no uniform approach to buy-in by central securities depositories, CCPs and trading venues. Feedback to the consultation suggested that buy-in should be executed by a bank or execution dealer that was not connected to the  parties in the failed transaction. The current consultation therefore focuses on which entity should be responsible for operating the buy-in process for OTC transactions that are not centrally cleared. ESMA seeks feedback on three proposed options: trading level execution, trading level with fall-back option execution and CSD participant level execution. Responses to the proposals are due by August 6, 2015. ESMA must provide all of the final draft RTS under the CSD to the European Commission by the end of September 2015.

ESMA’s consultation paper is available at: http://www.esma.europa.eu/consultation/Consultation-Draft-Regulatory-Technical-Standards-CSD-Regulation