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ARTICLE · 07 JUNE 2022

CSDR: Mandatory Buy-In Update

Arthur Cox
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ESMA has published draft regulatory technical standards (RTS) which will postpone the application of the CSDR mandatory buy-in regime for 3 years.

IrelandFinance and Banking
Arthur Cox
Arthur Cox
Phil Cody
Phil Cody
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ESMA has published draft regulatory technical standards (RTS) which will postpone the application of the CSDR mandatory buy-in regime for 3 years.

As mentioned in our recent CSDR update (CSDR: Commission proposes targeted changes; Countdown to application of Article 3), the reporting requirements for settlement fails, and the cash penalties regime, came into force on 1 February 2022, but the application of the mandatory buy-in regime was delayed (informally, following industry lobbing and a December 2021 'no action' letter from ESMA).

As part of its suggested targeted changes to CSDR, the Commission proposed in March 2022 that mandatory buy-ins not apply for the time being, but stopped short of proposing their removal from the settlement discipline framework. The Commission would prefer to have an option to re-introduce mandatory buy-ins via an implementing act in certain circumstances, using a two-step approach (i.e. the exercise of that option is a

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This article contains a general summary of developments and is not a complete or definitive statement of the law. Specific legal advice should be obtained where appropriate.

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