AccessFintech and SIX have entered into a partnership to help clients tackle challenges in categorising Central Securities Depositories Regulation (CSDR) eligibility data.
The CSDR settlement discipline regime (SDR), commencing in February 2022, presents measures to ensure efficient settlement of trades in the markets of the European Union.
SDR will introduce a mandatory buy-in regime and application of penalties, and participants must gather, track and communicate a significant amount of information through the lifecycle of each trade.
Trades that do not settle on time will enter the CSDR process and then require significant collaboration between the settling parties in order to comply with the regulation.
The partnership between AccessFintech and SIX will automate the process of correctly determining the CSDR eligibility parameters of each trade using multiple data points by using SIX-provided pertinent data on the AccessFintech platform, for use by sell-side and buy-side clients.
It will also provide the market with the ability to identify CSDR eligible trades and instruments, and also determine the market value in order to calculate the cash penalties.
In addition, clients will be to identify cash compensation, potential buy-in risk, and create a reliable single source for necessary price and reference data between the CSDs and their participants.
Heiko Stuber, senior product manager at SIX, comments: “Our partnership with AccessFintech will allow the visualisation and categorisation of the most up to date reference and pricing data. It will be a key factor for being compliant and a powerful tool for managing risk across the trade lifecycle.”
Boaz Zilberman, executive vice president of business development at AccessFintech, says: “Our partnership with SIX is an important step for our clients who must work out precisely which trades are eligible using a set of identifiers, which we will model together with SIX.”
“Having this additional vital insight is the final piece of AccessFintech’s complete CSDR lifecycle solution will enable the market to predict, track and manage CSDR risk and, communicate information, notices and actions, real time, across multiple stakeholders — all through a single interface, using our platform ecosystem,” Zilberman adds.
Last month, the European Association of Clearing Houses urged the European Commission to agree with the European Securities and Markets Authority to further delay the implementation of CSDR SDR beyond February 2022.
Check out page 22 in the latest issue of Asset Servicing Times to discover more about this regulation.
