While ICMA and the ERCC have been supportive of cash penalties, we believe that these should be supplemented by a broader industry effort to support settlement efficiency, focusing on existing tools and processes.
In the wake of the go-live of CSDR settlement discipline, the ERCC is releasing this discussion paper, ‘Optimising settlement efficiency’
to focus attention on a number of key opportunities to strengthen
settlement efficiency in Europe, which are complementary to the CSDR
measures. While ICMA and the ERCC have been supportive of cash
penalties, we believe that these should be supplemented by a broader
industry effort to support settlement efficiency, focusing on existing
tools and processes. Over the past year a number of key issues have
been identified and explored further with members in a series of
cross-industry workshops, including the shaping of settlement
instructions, partial settlement and auto-partialling, as well as
automatic borrowing and lending. This paper recaps the key take aways
from those discussions and aims to serve as a basis for a broader debate
on settlement efficiency with other industry stakeholders, central
banks and regulators.
ICMA
© ICMA
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