On 2 June 2022, the European Securities and Markets Authority (ESMA) published a final report containing draft regulatory technical standards (RTS) suspending for three years the application of the mandatory buy-in rules provided in Commission Delegated Regulation (EU) 2018/1229 of 25 May 2018 supplementing the Central Securities Depositories Regulation (CSDR) with regard to RTS on settlement discipline.
The ESMA is proposing the change in light of the amendment made to the CSDR via the DLT Pilot Regulation and the CSDR Refit legislative proposal.
In December 2021, the ESMA published a statement to clarify that, while the application and supervision of most CSDR settlement discipline requirements, in particular the settlement fails reporting and the cash penalties regimes, would go ahead as planned, the ESMA expects Member State competent authorities not to prioritise supervisory actions in relation to the application of the buy-in regime. The ESMA’s statement will remain in place until the buy-in regime is formally suspended.
The draft RTS has been sent to the European Commission for endorsement in the form of a Commission Delegated Regulation. Following the endorsement by the European Commission, the Commission Delegated Regulation will then be subject to the non-objection of the European Parliament and of the Council.