Are you Settlement Discipline Ready
17 January 2022

1 February 2022, the implementation date for the third phase of CSDR, the Settlement Discipline Regime (the "SDR"), is now a few weeks away.
The SDR aims to harmonise the operating rules currently used by CSDs across the EU to increase settlement efficiency and security and creates obligations on market participants involved in the trading / settlement life-cycle.
UK investment firms are sending updates (typically notifications/disclosures) to terms of business which cover:
Investment managers also need to consider the above in the context of funds, and whether they can charge penalties / credits to their funds and any communications required here.
The information provided is not intended to be a comprehensive review of all developments in the law and practice, or to cover all aspects of those referred to.
Readers should take legal advice before applying it to specific issues or transactions.