The European Association of CCP Clearing Houses (EACH) publishes today the EACH Framework on CSDR Settlement Discipline as developed by the EACH Securities Operations Working Group. With this Framework EACH intends to provide public and private stakeholders with details of EACH’s implementation of the CSDR settlement discipline provisions that affect CCPs. This should help all market participants to prepare for the date of entry into force of the CSDR Settlement Discipline Regime, which is currently set to 13th September 2020 although there is an ESMA proposals to extend it to 1st February 2021 currently under review by EU Authorities. This Framework should also contribute to the overall aim of CSDR to harmonise certain aspects of the settlement cycle and settlement discipline as well as to provide a set of common requirements for CSDs for both domestic and cross-border transactions.
Subjects covered by this Framework include:
- Population of settlement instructions
- Cash penalties
- Buy-in process
The EACH CSDR Settlement Discipline Framework:
- Is applicable to all CCPs subject to CSDR. Should a CCP not comply with the Framework in a specific aspect (e.g. due to legislative or operational boundaries), it will inform EACH and the CCP’s participants.
- May be subject to change due to shifting working assumptions and discussions with ESMA, the European Central Securities Depositories Association (ECSDA) and/or the market community.
- Follows the structure of the law. If a certain aspect is not relevant to CCPs or does not give rise to further clarification, it will not be dealt with in this document.
- Will be shared with all relevant stakeholders (i.e. Clearing Members, CCPs, CSDs, market participants, ESMA and other EU and national authorities).
All discussions pertaining to the Framework were conducted in accordance with the EACH Competition Law Provisions. For more information, please find attached the Framework or visit our website www.eachccp.eu
