These measures include a harmonised settlement penalties regime, mandatory buy-ins *, and common settlement features across the EU such as partial settlement and hold & release.
The Settlement Discipline Regime (SDR) will apply to all transactions intended to settle on an EEA CSD which are traded on a EU trading venue or cleared by a EU CCP.
Such transactions can be in transferable securities, money-market instruments, units in collective investment undertakings, and emissions allowances. Shares with a principle trading venue located in a 3rd country are excluded.
It will apply to all trading level entities - regardless of domicile - whether directly as CSD participants, or indirectly via a settlement or clearing agent.
For Euroclear UK & International clients, only the cross-border transactions direct with participants in Euroclear Bank, and those via Euroclear Bank with participants in the other EEA CSDs, will be subject to the regime.
* 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.