27 January 2022 In Insights
Preparing for CSDR: Mandatory buy-ins out, cash penalties in
Following EU regulators’ decision to postpone the implementation of the mandatory buy-in provisions, Charles Gubert considers the market’s position and mood, as many associations argue that mandatory buy-ins risk exacerbating market liquidity.
He speaks to our Head of Financial Products, Pardeep Cassells, who claims this debate has distracted the industry from preparing for the cash penalty regime, which encourage participants to settle trades quicker, lest they incur a penalty from central securities depositories if they are responsible for the trade’s failure.
Journalist: Charles Gubert
Publication: Global Custodian