The proposal came in response to a request from the European Commission to further postpone the Settlement Discipline Regime.
Advanced discussions are underway among EU regulators to propose a delay, The TRADE understands, though confirmation of this could still be months away.
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.