ESMA has submitted to the Commission draft RTS on settlement discipline which ESMA has to deliver for the implementation of the Central Securities Depository Regulation (CSDR). The RTS include details on:

  • measures for preventing settlement fails, through various processes and functionalities, such as:
    • automated matching;
    • partial settlement; and
    • hold and release mechanism; and
  • measures for monitoring and addressing settlement fails, in particular:
    • the cash penalties mechanism; and
    • the buy-in process.

The Commission now has three months to endorse the RTS and then, unless EP or the Council objects, they will be published in the OJEU and take effect two years after that. (Source: ESMA Issues Standards on CSDR Settlement Discipline)