Mon, Mar 16, 2020

Nick Bayley and Mark Turner Speak to the Trade to Discuss the CSDR Buy-In Regime

Nick Bayley and Mark Turner, Managing Directors in Duff & Phelps Compliance and Regulatory Consulting practice, were recently featured in The Trade discussing the post-Brexit implications of the buy-in regime under the Central Securities Depositories Regulation (CSDR).

Nick commented: “Elements of the CSDR settlement discipline regimes have been controversial, particularly the mandatory buy-in rules for failed settlements. While some portion of the CSDR has already come into effect, implementation of the settlement discipline rules has been delayed to next year, and the UK could still theoretically decide not to implement those particular rules.”

“The UK has the most important over-the-counter (OTC) and quote-driven markets in Europe, and many instruments such as small-cap equities do not trade on cleared order books in the UK, but rely entirely on market makers to provide liquidity,” Nick explained. “This makes the proposed settlement discipline regime a key issue for participants in those particular UK markets.”

“As many of us suspected, the government implies that it is looking to ease regulatory burden as the UK exits the EU. Being able to have more autonomy regarding regulatory affairs certainly looks like a red line for the UK government as it looks to the UK’s future role on the global stage outside the EU,” Mark said. 

Read the full article here.