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Our Secondary Markets Expert Group contributed to our response to ESMA's consultation on the Regulatory Technical Standards on the CSD Regulation – The operation of the Buy-in Process. We commented on one aspect of the draft Regulatory Technical standards on the CSD Regulation which we considered worth highlighting as a potential issue from the perspective of our members, small and mid-size quoted companies.

We noted that ESMA’s current proposed wording of Article 15, 4 of the draft Regulatory Technical Standards on the CSD Regulation – regarding the occasions when the buy-in is deemed to be impossible – would be disproportionately harmful for small and mid-sized quoted companies and the overall market for smaller issuers and less liquid securities.

Therefore, we urged ESMA to amend this article to allow other possible scenarios where the buy-in is not possible to be accounted for and allow the receiving party or participant to decide whether to receive cash compensation or opt for deferral with the consent of the delivering party.  

Click here to download the response (pdf)

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