On the 6th of June, the Malta Financial Services Authority ('MFSA') published a circular to the financial services industry in regard to Regulation (EU) No 909/2014 of the Central Securities Depository Regulation ('CSDR').
The circular highlights the latest developments in relation to the updated CDSR Q&As published by the European Securities and Markets Authority ('ESMA') on the 30th of May 2018. These build upon Q&As released this March, and provides explanations on Central Securities Depositories' ('CSDs') investment policy as well as clarifying the requirement to have "access to assets" on the same business day that a decision to liquidate such assets has been made. Further reviews and updates are expected in the coming months.
In addition, the circular also announces the adoption of the Regulatory Technical Standards on Settlement Discipline by the European Commission on the 25th of May 2018 in order to supplement the CSDR. The standards, inter alia, include:
- measures to prevent settlement fails
through various processes and functionalities such as:
- automated matching;
- partial settlement;
- hold and release mechanism.
- measures for monitoring and
addressing settlement fails, in particular:
- the cash penalties mechanism; and
- the mandatory buy-in process
These technical standards shall enter into force 24 months following their publication in the Official Journal of the European Union, unless otherwise specified. This will allow relevant stakeholders sufficient time to implement required compliancy changes.
For more information on CSDs, trading venues and other related financial matters, please contact us on info@dfadvocates.com or telephone +356 21313930/ 21340401.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
