Flashnews: On the way to CSDR 2

The topics covered are varied but of course the one that will be the focus of all attention is the regime of settlement disciplines. Although it has not already entered into force, some questions are dedicated to it in the consultation. This is great news for the industry, which has been relentless in pointing out the disastrous consequences of the introduction of the “mandatory buy-in”.

The fact that the EC is seeking input from stakeholders on the need for a review of the regime, the changes to be made to it, is rather encouraging and could lead to hope for the abandonment of the “mandatory buy-in”. On the other hand, the timetable mentioned by the EC posits the entry into force of the revision of the CSDR during 2022, and most certainly beyond the date of 1 February 2022 (date of application of the settlement disciplines). Consequently, if no further action is taken by the EC, the parties to the transaction could face a temporarily mandatory buy-in. An issue that will certainly be reflected in the responses to the consultation.