FIA EPTA has submitted a response to the European Securities and Markets Authority’s Consultation Paper on proposed amendments to Regulatory Technical Standards on Settlement Discipline. ESMA has proposed the RTS, which come under the Central Securities Depositories Regulation (CSDR), as part of the Refit process to improve efficiency of regulation, as well as to prepare for a shorter settlement period of T+1.
In the response, FIA EPTA supports the intention of the proposed amendments to improve the RTS and enable faster settlement. The response emphasises the importance of ensuring that pre-settlement matching and allocation are completed as soon as practical. The response also calls for mandatory use of electronic and machine-readable formats for written allocations and confirmations, to allow for straight-through processing. STP will be crucial for a smooth transition to T+1.
FIA EPTA further advocates for a centralised repository for Standard Settlement Instruction and facilitation of a harmonised SSI format, as well as mandatory partial settlement and inclusion of a confirmation field for Place of Settlement (PSET).
Read the response in full.
