ECSDA consults on draft settlement fail framework

The European Central Securities Depositories Association (ECSDA) has now made available the draft version of its future ECSDA Settlement Fail Penalties Framework (the Framework).

It says the document aims at creating a harmonised and coherent set of rules and considerations for creation and operation of the Settlement Discipline Cash Penalties mechanisms by all European CSDs subject to the CSD Regulation (Regulation (EU) 909/2014) or equivalent provisions.

The intention is to provide a clear, safe and efficient Framework for settlement penalties mechanisms of the CSDs that have joined and that have not yet joined the Target2-Securities (T2S) platform.ECSDA says the version is based on numerous assumptions which need to be confirmed by the authorities and other relevant stakeholders.

It is intended to evolve pursuant to clarification of assumptions, dialogue with relevant stakeholders and further ECSDA work. Preliminary or partial views will be appreciated as soon as possible. The open consultation on the early draft framework runs until August 17. Views, comments and proposals can be submitted to [email protected].