Taskize

Helping you comply with CSDR Settlement Discipline

A harmonised approach

Taskize is a secure and easy to use web-based platform designed for fast and efficient inter-company issue resolution. Its online collaboration workflows enable you to work directly with our client service teams and your counterparties, regardless of location or market. The result is improved response time, faster resolutions and more control over your activity.

The majority of the Euroclear group has already adopted Taskize as its preferred Client Service channel. As a result, our clients already use Taskize to resolve matching and settlement problems both prior to and after settlement date as well as for corporate action problems and tax queries.

Which is why, Taskize will also become Euroclear’s preferred channel for the CSDR Settlement Discipline Regime.

Providing proven, easy-to-use multi-party collaboration through a secure interface, it will help the industry address the challenges associated with the penalty fees and buy-ins* that CSDR will introduce.


*On 24 November 2021, the European Parliament and Council have agreed to postpone the implementation of mandatory buy-ins under the CSDR Settlement Discipline Regime. As a result, we will adapt the timing of our mandatory buy-in related developments as and when more information becomes available.

Settlement penalty appeal process

The Taskize solution for the appeal process is efficient: simply create a bubble in Taskize using the penalty appeal workflow. This will allow our teams to efficiently process your appeals prior to the deadline.

The CSDR settlement penalty appeal process enables you as a Euroclear Bank client or ESES client to declare disagreement with a CSDR Settlement Discipline Regime-related penalty on settlement fails reported by Euroclear Bank or ESES.

By using Taskize to appeal a penalty, you benefit from:

  • A streamlined process: one digital channel for appeals and operational and CSDR inquiries
  • Security: a secure channel with accessible audit trail
  • Reduced operational error: a guided step by step process to ensure easy and accuracy
  • Easy follow-up: a filterable blotter allowing you to easily follow up on all your appeals

If you are not yet on Taskize, sign up now to access Taskize free of charge as part of the Euroclear sponsored network. The average on-boarding time is less than seven days.

Until you are up and running on Taskize, you can submit your penalty appeals using a webform as a temporary solution until 1 August 2022.




CSDR Settlement Discipline timeline

The complexities that come with the implementation of the settlement discipline regime will be a new experience for many of our clients.

To help shed some light on the new landscape, the below timeline takes you through the potential steps you can encounter, from trade date to the conclusion of a buy-in.  

Settlement period

The time between the trade date and the intended settlement date of a transaction.

During this time period, clients will - just as they do today - be able to address and resolve matching and other settlement problems that could result in failing trades.

Consult the table below to find out more on how you can identify and resolve your failing transactions.
 

Matching feedback

Utilise your existing business reporting solution to obtain matching feedback


Matching resolution

Use Taskize to facilitate multi-party discussions between back office, middle office, trading desk, underlying client, counterparty, and others to resolve matching issues faster


Trade status reporting

Utilise your existing business reporting solution to obtain a status on the settlement of your trade


Fail resolution

Use Taskize to facilitate multi-party discussions between back office, middle office, trading desk, underlying client, counterparty, and others to resolve the failing transaction faster


Extension period

The time between the intended settlement date and the beginning of the buy-in period.     

During this period, CSDR will impose daily penalty fees on the trading party that is responsible for the late settlement of a transaction.

Our solutions provide assistance in the fail resolution process and thereby help you reduce the fees you have to pay.

Consult the table below to find out more on how to reduce your penalty fees.
 

Fail resolution

Use Taskize to facilitate multi-party discussions with trading desks, underlying clients, counterparty and others to help resolve the failing transaction


Buy-in pre-notification

Use Taskize to acknowledge the length of the extension period and to inform involved parties on upcoming mandatory buy-in


Mandatory partial settlement

Use Taskize to acknowledge mandatory partial settlement of the failing trade on the last day of the extension period


Buy-in period

The time after the extension period as of which transactions, that continue to fail for lack of securities, will be subject to the mandatory buy-in process imposed by CSDR.

Buy-in is not possible

There will be occasions where, often for reasons of reduced liquidity, a buy-in is impossible to execute. In this situation, the seller will be required to pay a cash compensation to the buyer.

The table below details the steps that you may encounter along the way, and introduces the solutions that will help make the process as simple and efficient as possible.
 

Buy-in notification

Use Taskize to agree on the party responsible to initiate and follow-up the buy-in process, and inform all involved parties on the start of the buy-in period


Buy-in verification

Use Taskize to inform all parties that a buy-in is not possible


Cash compensation notification

Use Taskize to inform the failing party of the calculated cash compensation amount and payment details


Price discussion (optional)

Use Taskize to share details of the cash compensation calculation method


Buy-in reimbursement

Use Taskize to disclose the reimbursement details (all amounts paid, including any execution fees resulting from the buy-in) or, use your existing business solution


Buy-in process finality

Use Taskize to confirm receipt of cash compensation and acknowledge finality of the buy-in process

Upon finality, both parties can cancel the failing transaction and penalties will stop to accrue


Failing trade cancellation

Use your existing business solution to cancel your instruction


Cancelled trade reporting

Use your existing business reporting solution to receive confirmation that the failing transaction has been cancelled


Buy-in reporting to Euroclear

Upon finality of the buy-in process, the receiving CSD participant can generate a buy-in bubble in Taskize and invite Euroclear into the bubble to automatically share the cash compensation amount

Alternatively, you can send us an MT530 Swift message with the cash compensation amount

Buy-in is possible

During this period, firms will have to cope with completely new processes and handle interactions with parties they are not used to dealing with.

The table below details the steps that you may encounter during the buy-in period, and introduces the solutions that will help make the process as simple and efficient at possible.
 


Buy-in notification

Use Taskize to agree the party responsible for initiating and following-up the buy-in process

Inform all involved parties of the start of the buy-in period


Buy-in verification

Use Taskize to inform all involved parties that a buy-in is possible


Buy-in agent appointment

Use Taskize to discuss the execution of the buy-in with a buy-in agent

You may invite the buy-in agent directly into the discussion with your counterparty or you can keep the conversations segregated


Buy-in notice

Use Taskize to inform the failing party of the appointment of a buy-in agent

Inform the failing party of their obligation to put the failing trade ‘on hold'


Trade on ‘hold’

Use your existing business solution to put the trade on hold


‘Hold’ confirmation

Use your existing business reporting solution to receive confirmation of hold status

Use Taskize to inform all involved parties that the failing instruction was put 'on hold' by the seller


Buy-in (partial) execution

Use Taskize to provide real-time feedback to all involved parties on the progress and the result of the buy-in execution


Buy-in (partial) settlement

Use Taskize to inform all involved parties of the settlement status of the buy-in

In case of partial settlement, the Taskize checklist will advise on the necessary actions to ensure that penalties continue to accrue only for the outstanding amount

You can also use your existing business reporting solution to receive settlement status updates


Buy-in deferral

Use Taskize to inform all involved parties that the execution of the buy-in is deferred

Share information on the length of the deferral period


Buy-in outcome

Use Taskize to inform all involved parties on the outcome of the buy-in process

Includes quantity, price and value of the financial instruments bought in as well as any cash compensation amount in case of partial buy-in


Price discussion (optional)

Use Taskize to share details of the cash compensation calculation method (in case of a partially successful or unsuccessful buy-in)


Buy-in reimbursement

Use Taskize to disclose the reimbursement details (all amounts paid, including any execution fees resulting from the buy-in) or, use your existing business solution


Buy-in process finality

Use Taskize to confirm receipt of the financial instruments and/or cash compensation and acknowledge finality of the buy-in process

Upon finality, both parties can cancel the failing transaction and penalties will stop to accrue


Failing trade cancellation

Use your existing business solution to cancel your instruction


Cancelled trade reporting

Use your existing business reporting solution to receive confirmation that the failing transaction has been cancelled


Buy-in reporting to Euroclear

Upon finality of the buy-in process, the receiving CSD participant can generate a buy-in bubble in Taskize and invite Euroclear into the bubble to automatically share all relevant buy-in details

Alternatively, you can send us an MT530 Swift message including the aggregated number & value of financial instruments bought in as well as the cash compensation amount, if any


Seller

Settlement period

  • Reduce problem resolution times
  • Avoid penalties for failed security delivery
  • Provide evidence to regulators of measures taken to limit fails

Extension period

  • Prioritise your operational workload to avoid continued penalties and potential buy-in costs

Buy-in period

  • Standardise the way you interact with the different parties involved in the buy-in process
  • Receive up-to-date information on executed buy-ins to avoid additional penalties

Buyer

Settlement period

  • Reduce problem resolution times
  • Avoid penalties for failed security delivery
  • Provide evidence to regulators of measures taken to limit fails

Extension period

  • Prioritise failing trades to avoid operational costs and risks associated with activating the buy-in process

Buy-in period

  • Facilitate & standardise the buy-in communication process with all parties, including buy-in agent
  • Provide a clear audit trail to your regulators evidencing your adherence to the CSDR buy-in process

CSD

Settlement period

  • Support settlement break resolution to help your clients avoid penalties
  • Provide evidence to regulators that you are taking action to improve settlement efficiency through collaboration with your clients

Extension period

  • Quickly find the most appropriate and responsible operator in your participant firm to communicate penalty information
  • Facilitate the appeal process with your participants inside a secure resolution space, in parallel to processing penalties

Buy-in period

  • Receive final buy-in and possible cash compensation information
  • Provide a common and transparent audit trail to your regulators evidencing your adherence to the CSDR buy-in process

CCP

Settlement period

  • Standardise your interaction with the different parties to reduce the time it takes to resolve problems

Extension period

  • Quickly find most appropriate and responsible operator in your member firm to facilitate resolution

Buy-in period

  • Resolve buy-in workflow failures with failing members

Settlement agent

Settlement period

  • Provide consistent, high-quality & real-time feedback to your clients
  • Support settlement break resolution to help your clients avoid penalties
  • Provide evidence to regulators that you are taking action to improve settlement efficiency through collaboration with your clients

Extension period

  • Standardise the way you inform the appropriate operator of penalty information across all your clients
  • Consistent, segregated and timely updates across the settlement chain to support your clients to reduce their penalty costs

Buy-in period

  • Provide a clear audit trail to your regulators evidencing your adherence to the CSDR buy-in process
  • Communicate executed buy-ins in a timely manner and help your clients avoid additional penalties

Buy-in agent

Settlement period


not applicable

Extension period


not applicable

Buy-in period

  • Connect in a standardised way with all parties involved in the settlement chain

Sign up now to get ready for CSDR

Complete the online enrolment form here >

Watch the recorded webinar

20/09/2021

CSDR buy-in reporting via Taskize: a step-by-step guide

In this short video, you will discover how to easily report buy-In trades via Taskize to Euroclear under the new CSDR Settlement Discipline Regime

Watch this video
15/07/2020

CSDR buy-in reporting: how Taskize works for indirect clients of Euroclear

Taskize's co-founder & COO, Philip Slavin, explains how the non-direct clients of Euroclear can also benefit from Taskize for their CSDR buy-in reporting.

Watch the webinar's extract (duration 4:39 mins)
15/07/2020

CSDR buy-in reporting: challenges and solutions - full length webinar

Euroclear and Taskize partner with Scottish Investment Operations to deliver a CSDR Webinar focused on the CSDR buy-in reporting challenge and solution.

Watch the full webinar (duration 47:34 mins)