On April 14, AFG responded to\u00a0ESMA\u2019s\u00a0consultation on\u00a0settlement efficiency\u00a0under CSDR.\u00a0AFG\u00a0supports\u00a0ESMA’s objectives, particularly the strengthening of automation, which is essential\u00a0in view of the transition to\u00a0a one-day settlement (T+1). This involves improving deadlines and the exchange of information related to allocations and confirmations, as well as the use of electronic formats and international standards. <\/p>\n\n\n\n
However, the Association emphasizes the importance of a proportionate approach that takes into account the capabilities of smaller entities. In this regard,\u00a0for\u00a0the majority of the proposed measures, we\u00a0do not\u00a0see a need for regulatory action. They can be encouraged through market best practices and\u00a0harmonization\u00a0at European level: CSD and custodian cut-off times, the use of real-time gross settlement, continuous data transmission, consistent use of the PSET field (settlement\u00a0place), and the adoption of a standardized format for settlement instruction exchange (SSI). However, certain tools aimed at facilitating securities settlement, such as automatic partial settlement, should be made mandatory and available in all CSDs.<\/p>\n\n\n\n
Finally, AFG calls for greater transparency in the publication of settlement fails\u2019\u00a0data in order to improve understanding\u00a0on\u00a0the\u00a0root\u00a0causes of these incidents.<\/p>\n\n\n\n