CSDR Settlement Discipline Regime

The Central Securities Depositories Regulation (CSDR) aims to enhance the efficiency and safety of securities settlement across the EU. In this context, CSDR introduced shorter settlement periods, as well as rules to prevent and address failures in the settlement of securities transactions (settlement fails), commonly referred to as the Settlement Discipline Regime (SDR).

The CSDR provisions on settlement discipline are complemented by Commission Delegated Regulation 2018/1229 which specifies the measures for the prevention of settlement fails and the measures to address these settlement fails once occurred. Those measures include monitoring settlement fails, as well as collecting and distributing cash penalties for settlement fails. In addition, Commission Delegated Regulation (EU) 2018/1229 encompasses the operational details of a buy-in process.

By enforcing the measures, the SDR encourages market participants to settle transactions on the intended settlement date, thereby improving overall market stability and reducing risks associated with settlement delay.

For more information on the implementation of SDR at Clearstream, please refer to the Attachments below. Please note that some of the documents in the Attachments section are only available to Premium users. They represent the state of information available to Clearstream group CSDs at the date of publication.