Investment Operations

SIX, AccessFintech Partner on CSDR Eligibility Data Challenges

Clearstream Digital Assets
Firms join forces to solve a significant challenge in categorizing CSDR eligibility, using SIX reference and pricing data on the AccessFintech platform.

AccessFintech and SIX confirmed today a partnership to provide Central Securities Depositories Regulation (CSDR) eligibility and penalty data to their joint CSDR customers, solving for one of the major CSDR challenges – the sourcing of eligibility data.

The CSDR settlement discipline, commencing in February 2022, presents measures to ensure efficient settlement of trades in the markets of the European Union. The forthcoming regulatory requirement introduces a mandatory buy-in regime and application of penalties. Furthermore, 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.

Analysts say a key part of this process is correctly determining the CSDR eligibility parameters of each trade using multiple data points – a process that the firms said will be automated and streamlined using SIX-provided pertinent data on the AccessFintech platform, for use by sell-side and buy-side clients.

According to a joint statement, the partnership will provide the market with the ability to seamlessly identify CSDR eligible trades and instruments, determine the market value in order to calculate the cash penalties, cash compensation, potential buy-in risk, and create a reliable single source for necessary price and reference data between the CSDs and their participants.

“Financial market participants need to ensure they do not fall foul of CSDR when it comes into full effect in February 2022,” said Heiko Stuber, Senior Product Manager at SIX. “The industry needs to be gathering the information needed to test the impact of settlement fails in a “CSDR-compliant” regulatory environment,” Stuber added. “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,” he said.