LCH: CSDR Settlement Discipline Regime
LCH Circular No 4103
20 July 2020
All LCH Ltd RepoClear Clearing Members
20 July 2020
The Central Securities Depositories Regulation (CSDR) is an EU regulation which introduces measures for the authorisation and regulation of EU/EEA central securities depositories (CSDs).
The main objective of the regulation is to increase the safety and efficiency of securities settlement and settlement infrastructures in the EU, creating for the first time at European level, a common authorisation, supervision and regulatory framework for CSDs.
In light of this, the RepoClear service of LCH is preparing for implementation of the CSDR Settlement Discipline Regime in advance of 1 February 2021.
LCH is pleased to share with you:
Both documents are available on the LCH SA and LCH Ltd secured areas and the portal:
SA Fixed Income > RepoClear > CSDR Documents
LCH Portal > RepoClear SA > Documents
RepoClear Ltd Member Information > CSDR Documents
LCH Portal > RepoClear > Documents
Note: With the recent announcement from the UK Treasury, LCH is reviewing its RepoClear CSDR Settlement Discipline approach and will potentially update its strategy for the UK Gilt market.
Please see the upcoming milestones:
Q4 2020 – (Date to be confirmed):
LCH will offer its members to participate in testing where amended reports can be consumed from the LCH test platform. LCH will aim to align its test cycles with CSDs test phases to ensure full flow can be tested, but where this cannot be achieved, LCH will offer test simulation as an alternative.
February 2021 :
The CSDR Settlement Discipline Regime is expected to enter into force on 1 February 2021.
Note: The dates above are potentially subject to change in the event the European Commission makes a recommendation to ESMA to further delay the enforcement date of 1 February 2021 to a later date.
Please do not hesitate to contact your dedicated Relationship Manager should you need more information:
For LCH SA: repoclearclientserviceSA@lch.com
For LCH Ltd: securitiesclientserviceLTD@lch.com
LCH Client Service teams