CSDR buy-in reporting: obligations and challenges

Under the incoming CSDR Settlement Discipline Regime (SDR), the (I)CSDs’ obligations include the retention of the relevant buy-in details for a period of 10 years as well as reporting the number and value of buy-in transactions to the competent authorities. These measures will apply to all trading level entities involved in transactions intended to settle on an EEA (I)CSD.

The challenges for the (I)CSDs arise as such information cannot be extracted from their systems and they often do not have a contractual relationship with the ultimate buyers. Therefore, the information required must be reported to them, often passing through a long holding chain of intermediaries.