In July 2014, the European Parliament and Council issued Regulation (EU) No 909/2014 (CSDR) with the aim to harmonize and improve efficiency of securities settlement across EU markets. Article 6 & 7 of the regulation, commonly referred to as Settlement Discipline Regime (SDR), introduce standardization across allocations and confirmations processing, call for automation of the settlement process and implement penalties and mandatory buy-ins upon the instance of settlement failure.

The practical implementation of CSDR presents a number of challenges and we expect further regulatory guidance to come out before the February 2021 go-live date.

In this article, we outline our recommended implementation approach and some key considerations for designing solutions and operational processes in preparation for next February.

PDF highlights include:

1) Evaluating a ‘day 1 solution’ versus strategic considerations

2) How to conduct an impact assessment

3) How to navigate the regulatory requirements and to design a day 1 solution

4) Making a strategic roadmap (to focus on long-term changes beyond direct regulatory obligations)

5) How Capco can help.

For more information about implementing CSDR, please feel free to reach out to Tej Patel, Partner, Capco UK.