The Treasury has said it will not implement SDR in February 2021, but UK firms will still have to comply with the buy-in regime for EU transactions.
The combined solution will deliver a real-time platform for clients to manage the settlement fail and buy-in process.
As portfolio trading becomes more popular among buy-side traders, research has warned a large portfolio trade could increase risks around the CSDR buy-in regime if a single trade fails.
Daniel Carpenter, head of regulation at RegTech and post-trade services provider Meritsoft, a Cognizant company, tells The TRADE about how the ongoing changes to CSDR will impact the industry, and explains why so many market participants are not satisfied with the current framework.
The endorsement comes two months after the ESMA stated it would postpone enforcing the CSDR settlement discipline regime following an industry-wide lobby.
Watchdog rejects appeal for an overhaul of key pillars of CSDR from over a dozen concerned trade bodies, including the Investment Association.
Industry experts believe the UK may decide not to adopt one of the most controversial aspects of the new settlement regulation post-Brexit.
The delay from ESMA may not have gone far enough according to some market experts who believe challenges persist despite time extension.
After months of lobbying, trade associations and market participants get their wish as ESMA delays introduction of CSDR's settlement discipline regime.
Trade associations have said cash bond markets should be excluded from initial rollout of the CSDR buy-in regime until the regulation’s impact on liquidity is fully assessed.