Deutsche Bank launches updated version of CSDR settlement discipline toolkit
13 December 2021 Germany
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Deutsche Bank has launched an updated version of its Central Securities Depositories Regulation (CSDR) settlement discipline regime solution.
The toolkit aims to help clients and market participants, particularly investors and central securities depositories (CSDs), with their final preparations for CSDR’s Settlement Discipline Regime (SDR) on 1 February 2022.
The toolkit provides an updated overview of the CSDR, with explanations and examples of how regulatory procedures can be expected to play out in practice, including example scenarios and sample penalty fee calculations. It also offers suggestions on how to respond to the latest requirements, such as cash penalties which will have repercussions across both the trade and post-trade industries.
The German bank recommends that an overhaul of market participants' front-to-back operational processes, communication and escalation is imperative, ridding the industry of any outdated legacy systems.
Static data should be reviewed by market participants, with a focus on straight-through processing, Deutsche Bank adds.
Deutsche Bank also recommends that market participants review their key operating procedures and key performance indicators.
The CSDR is being implemented by the European Commission to improve the safety and efficiency of securities settlement in the European Economic Area (EEA) with various procedures put in place to prevent and address failures in the settlement of securities transactions.
Paul Maley, global head of securities services and regional head of Corporate Bank UK and Ireland, Deutsche Bank, says: “Much is at stake for the securities industry if we are to collectively improve efficiency in securities trade through to post-trade and to help protect and promote the European capital markets, which will be critical to the post-COVID recovery.”
Emma Johnson, director, market advocacy, securities services Europe, Deutsche Bank, adds: “With so much to do, and so little time to do it, now is the time for the industry to dig deep to cross the finish line.”
She adds: “Market participants will need to carry out an overhaul of their front-to-back operational, communication and escalation processes, while gaining a complete end-to-end understanding of the regulation and how it impacts business and operational processes.”
The toolkit aims to help clients and market participants, particularly investors and central securities depositories (CSDs), with their final preparations for CSDR’s Settlement Discipline Regime (SDR) on 1 February 2022.
The toolkit provides an updated overview of the CSDR, with explanations and examples of how regulatory procedures can be expected to play out in practice, including example scenarios and sample penalty fee calculations. It also offers suggestions on how to respond to the latest requirements, such as cash penalties which will have repercussions across both the trade and post-trade industries.
The German bank recommends that an overhaul of market participants' front-to-back operational processes, communication and escalation is imperative, ridding the industry of any outdated legacy systems.
Static data should be reviewed by market participants, with a focus on straight-through processing, Deutsche Bank adds.
Deutsche Bank also recommends that market participants review their key operating procedures and key performance indicators.
The CSDR is being implemented by the European Commission to improve the safety and efficiency of securities settlement in the European Economic Area (EEA) with various procedures put in place to prevent and address failures in the settlement of securities transactions.
Paul Maley, global head of securities services and regional head of Corporate Bank UK and Ireland, Deutsche Bank, says: “Much is at stake for the securities industry if we are to collectively improve efficiency in securities trade through to post-trade and to help protect and promote the European capital markets, which will be critical to the post-COVID recovery.”
Emma Johnson, director, market advocacy, securities services Europe, Deutsche Bank, adds: “With so much to do, and so little time to do it, now is the time for the industry to dig deep to cross the finish line.”
She adds: “Market participants will need to carry out an overhaul of their front-to-back operational, communication and escalation processes, while gaining a complete end-to-end understanding of the regulation and how it impacts business and operational processes.”
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