TONIC CSDR SERVICES
Tonic can protect profits and accelerate tailored SDR solutions for your firm, via our modular services.
Settlement Discipline Regime (SDR)
The last but perhaps most significant piece of the CSDR ruleset jigsaw, SDR is designed to address securities settlement failure risk.
The SDR rules went live on 1 February 2022, catching all firms who interact directly or indirectly (i.e. via an agent) with the EU CSDs. Think Euroclear, Clearstream and many more.
Designed to improve efficiencies within the securities settlement process chain, the SDR provisions focus on the prevention and punishment of settlement fails.
Cash penalties and mandatory buy-ins are already eating into Front Office profits, unless firms have significantly upgraded their often-neglected settlement infrastructure.
As such, SDR will trigger long-term transformation at many firms, as profit erosion increases.
Process automation, strong data foundations and near real-time settlement monitoring will all be crucial elements for success.