CSDR Virtual Roundtable
Pardeep Cassells, Head of Financial products, AccessFintech, discusses CSDR on page 24 of the latest edition of Asset Servicing Times: “It is vital that we bear in mind the current cost of managing fails at the current rate across the market.”
The important thing to remember is that, despite the complexity of the regulation and the challenges that organisations seem to be facing, the settlement discipline regime is intended to benefit the market.A clearer focus on pre-matching will naturally lead to improved con-firmation of trades and reduce fail rates.
The intended penalty and buy-in regimes will help those organisations who consistently find themselves impacted by failed deliveries off-set the cost of managing the failed and mismatched trades. It is vital that we bear in mind the current cost of managing fails at their current rate across the market.
Banks and buy sides have entire operational functions in place purely to manage the inefficiencies of failed trades and mismatched trades. This impact is compounded for smaller firms that are not prioritised for deliveries and that would benefit from a structured and mandatory buy-in process