Update on the CSDR settlement discipline regime

This communication is a short update in continuation of our VP News & Insights article of 13 May 2019.


The new CSDR settlement discipline regime has a deferred implementation of 24 months, thereby establishing the compliance deadline of 13 September 2020. This implies a tight timeline for all parties involved – but even if time is short, VP will do its utmost to provide transparency of the work in progress towards the implementation deadline.

VP is intensifying the dialogue with our customers and market participants to ensure a smooth transition to the new CSDR settlement discipline regime. This week VP started a series of meetings with customers to ensure the correct and timely implementation and to initiate a bilateral dialogue. The main purpose of the meetings is to discuss the impact of the upcoming CSDR settlement discipline regime and exchange views on how to develop and implement the required solutions.

Furthermore, at the meetings VP will provide customers with the latest news from the relevant regulatory bodies.

As part of the implementation of the CSDR settlement discipline regime, VP will among other things develop a new penalty mechanism for VP settlement and ensure integration with the T2S Penalty Mechanism. The measures include an extensive reporting task, as well as obligating the CSDs to be the ‘payment clearing hub’ for the collection and re-distribution of the penalties.

Furthermore, participants will need to implement system changes to ensure integration towards VP, and adapt business procedures to comply with the new rules. At VP, we will aim to ease the implementation burden for our customers, minimizing the system changes to the extent possible and maintaining a close dialogue with our stakeholders.

Please do not hesitate to contact us for more information and please feel free to re-visit the article of 13 May 2019.

VP Securities

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