Esma considering revisions to CSDR buy-in technical standards

Extra-territoriality, costs, information gaps in settlement chains are challenges

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Central securities depositories (CSDs) and custodian banks are questioning the wisdom of proposals to mandate buy-ins at the settlement level in European capital markets for transactions including repo, securities lending and cash bond markets.

As well as significant organisational challenges, CSDs and custodians argue they would be exposed to additional risks with costs ultimately passed onto clients.

The Central Securities Depository Regulation (CSDR) passed into law in 2014 and is slated to t