Both buy- and sell-side firms agree the mandatory buy-in regime will have significant negative implications on Europe’s capital markets.
Daily penalties mean the upcoming Settlement Discipline Regime (SDR) is an issue for the front-office as well as the back, according to the DTCC.
Asset managers have expressed concerns that the CSDR mandatory buy-in regime will impact liquidity and increase costs.
The research explained how, for some firms, most settlement communications still occur through email instead of through secure networks.
Clearstream will apply for a new operating license this autumn as it readies for the introduction of CSDR.
Forthcoming CSDR regulation may lead to inconsistencies with other legislation.
CSDR set to hit securities finance according to Deutsche Bank.