The CSDR is significant to all financial market participants in Europe and has introduced measures that clients must be aware of including:
In order to ensure adequate asset protection, Article 38 of Regulation (EU) No. 909/2014 requires CSDs to offer their participants the choice of two different levels of segregation.
Clients will have the ability to create third-party accounts to separate the activities of a specific Clients, rather than merging activities belonging to multiple Clients into a single account.
Clients will be required to obtain LEI code and communicate it to CSD in order to identify their legal entity type which CSD will record and report to their national authorities to help harmonise data collection and reporting.
Monte Titoli User Committee
MT has established a User Committee which is composed of Issuers and Participants. Functioning and mandate are disciplined by the Terms and Conditions
Following the harmonization of buy-in procedures and penalties, Monte Titoli will adapt its operating rules to receive the new European regulation.
Analysis for the implementation of settlement discipline is currently underway, even at T2S level.
Entry into force of the Settlement Discipline is expected by Sept 2020 but the date is currently under review by the European Authorities.