CSDR Settlement Discipline Regime
The European Regulation on improving securities settlement in the European Union and on Central Securities Depositories (CSDR) contains provisions on settlement discipline, commonly referred to as the CSDR settlement discipline regime.
The CSDR settlement discipline regime is specified in the Regulatory Technical Standards on Settlement Discipline (RTS) which aims at harmonizing the regulatory environment for securities settlement within the EU. One of the main objectives of the RTS is to improve the safety and efficiency of securities settlement, particularly of cross-border transactions, by ensuring that buyers and sellers receive their securities and money on time and without risks. To achieve this objective, the RTS provides for a set of measures to prevent and address failures in the settlement of securities transactions.
As a CSD operating under a CSDR license, VP Securities is obliged to implement the new settlement discipline regime. This will have an extensive impact on both our customers and on VP Securities, as new functionalities will be introduced to support penalty mechanisms, mandatory partial settlement, buy-in and suspension of a participant.
In the links below you will be able to read more about the requirements and the CSDR settlement discipline regime project implementation in VP.