Settlement Discipline Regime (SDR): Proposal by ESMA to postpone entry into force to February 2021


The European Securities and Markets Authority (ESMA) has published a final report on the CSDR settlement discipline regime (SDR), presenting a new draft regulatory technical standard (RTS) on postponing the date of entry into force.

The reason for the proposed postponement is to allow market participants a longer period to implement required IT developments. Instead of the originally planned implementation in September 2020, ESMA proposes to postpone the date of entry into force to 1 February 2021; once approved, this will cover all aspects of SDR (penalties, buy-ins, fails reporting to regulators). The postponement will have to be approved by the European Commission.

The final report by ESMA is available here: CSDR Settlement Discipline Standards Postponed.