The Association for Financial Markets in Europe (AFME) has welcomed political agreement regarding the European Union’s refit of the Central Securities Depositories Regulation (CSDR).
Peter Tomlinson, director of post trade at AFME, said, “AFME welcomes the political agreement in today’s trilogue negotiations, which views mandatory buy-ins as a measure of last resort, to be activated subject to assessment and only in the case where the level of settlement fails in the EU has not reduced and is deemed to pose a financial stability risk.
“AFME supports further focus on all other tools that would be more appropriate to support settlement discipline and efficiency in Europe. The CSDR Refit legislation in the EU will include a mandate for ESMA to undertake an assessment on the possibility of shortening the settlement cycle in the EU.”
A new European industry Task Force, established by AFME earlier this year and composed of European authorities and market participants, will examine the direct economic costs and savings to the industry of the reform*, as well as factors relating to global alignment and market attractiveness.
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