LCH Ltd EquityClear CSDR update

Dear Member

On 8 May 2020, the European Commission endorsed the recommendation of ESMA that the date on which Commission Delegated Regulation (EU) 2018/1229 of 25 May 2018 (the CSDR Settlement Discipline Regime) enters into force be postponed from 13 September 2020 to 1 February 2021*. It is widely expected that such postponement will receive the non-objection of the European Parliament and of the Council, and so become effective.  

In light of this, the EquityClear service of LCH Limited (LCH) is preparing for implementation of the CSDR Settlement Discipline Regime in advance of 1 February 2021. Please see the following milestones:

• January 2020 – LCH promoted the research and publication of a White Paper on the CSDR Settlement Discipline Regime.

• June 2020 – LCH will issue a CSDR technical specification detailing its new EquityClear reports, which will be in addition to its existing suite of EquityClear reports.

• July 2020 – LCH will invite its EquityClear members to join us for a detailed CSDR workshop. We will highlight the expected changes resulting from the CSDR Settlement Discipline Regime and the expected impact on LCH and our EquityClear members.

• Q4 2020 – LCH will offer its EquityClear members the opportunity to test access to the new CSDR reports (e.g. buy-in notification report, penalties report) during a CSDR member test session. LCH will confirm and notify EquityClear members of the exact test session dates.

• 1 February 2021 – Expected date on which the CSDR Settlement Discipline Regime will enter into force.

It is our intention to provide as much detail as possible to our EquityClear members, in respect of the CSDR Settlement Discipline Regime.

If you wish to discuss any aspect, please contact Client Services Team at: securitiesclientserviceLTD@lch.com.

*  ESMA Final Report dated 4 February 2020

Yours Sincerely

Alex Krunic, Head of Equities LCH Ltd