CSDR settlement discipline

Roles that need it

• Settlements Analyst
• Custody Operations Analyst
• Middle Office Analyst
• Securities Lending & Repo Analyst
• Regulatory Change Analyst

Skills it belongs to

• Settlement and fails management
• Regulatory change impact assessment

Related concepts

• Settlement failA settlement fail is a transaction that does not settle on its intended settlement date, because securities or cash are missing or the instructions do not match. Under the Central Securities Depositories Regulation (CSDR), fails in EU CSDs trigger daily cash penalties and reporting, and may lead to a buy-in.
• Cash penalty (CSDR)A cash penalty is a daily charge that an EU central securities depository (CSD) applies to the participant responsible for a settlement fail, and pays to the counterparty that suffered it. The amount is a rate set by delegated regulation times the value of the failed instruction, with rates that differ by asset type and liquidity.
• Mandatory buy-inA buy-in is the purchase of the undelivered securities from a third party after a seller fails to deliver for a set period, with the failing party paying any price difference. Under the review of the Central Securities Depositories Regulation (CSDR Refit), mandatory buy-ins in the EU apply only if the Commission activates them for specific instruments after cash penalties prove insufficient.
• CSDR (Central Securities Depositories Regulation)The Central Securities Depositories Regulation (CSDR), Regulation (EU) No 909/2014, sets EU rules for the authorisation and supervision of central securities depositories and for securities settlement. It requires book-entry form, harmonised settlement cycles and settlement discipline, and was amended by the CSDR Refit (2023/2845) and the T+1 regulation (2025/2075).
• T+1 (Settlement cycle)T+1 is a settlement cycle in which securities trades settle one business day after the trade date. Regulation (EU) 2025/2075 moves trades on EU trading venues from T+2 to T+1 from 11 October 2027; the United States, Canada and Mexico moved in May 2024, and the UK and Switzerland target the same date as the EU.

Sources

• Regulation (EU) No 909/2014 (CSDR), EUR-Lex (external site) accessed 31 Oct 2026
• Commission Delegated Regulation (EU) 2018/1229 (settlement discipline), EUR-Lex (external site) accessed 31 Oct 2026
• Regulation (EU) 2023/2845 (CSDR Refit), EUR-Lex (external site) accessed 31 Oct 2026

Updated 31 Oct 2026.