[ N E W S R E V I E W | B R E X I T ] in place are working on the EU regime , so the challenge is to anticipate how different the UK will be .”
The European Commission recently closed its consultation of CSDR and is set to publish the findings of its review in the second quarter . Many are hoping European regulators will do away with the buy-in regime ( which seems highly unlikely ) or implement it on a discretionary basis .
As a result , European regulators could opt for more favourable changes so that it is more aligned with the UK .
“ We have pushed for a voluntary buy-in regime rather than a mandatory one , and specific exemptions in terms of products and operations which should be out of the scope of the SDR ,” says Boucheta . “ The UK move not
" While it looks like regulatory fragmentation at present , I do see this as a ‘ creation moment ’ for things coming back together ."
SAMIR PANDIRI , PRESIDENT , BROADRIDGE INTERNATIONAL
to implement the full CSDR rules will bring the attention from EU regulators , and it is a good thing to help us push our various points .”
In addition , Broadridge ’ s Pandiri believes that regulators will eventually look to align their respective frameworks that can preserve the flow of securities processing and post-trade activities . “ While it looks like regulatory fragmentation at present , I do see this as a ‘ creation moment ’ for things coming back together , as practical market innovation starts to produce more fungible solutions that actually make securities processing easier across markets ,” Pandiri says .
Going forward , the UK and EU will most likely stay in close contact when formulating and implementing financial services regulation . The UK has been a leading voice for many of the post-financial crisis regulations , and it is hoped their expertise will continue to be leveraged . “ The UK played a very important role in Brussels , and though it is no longer directly involved , it should carry on discussions for securities services regulations to avoid unintended consequences ,” Boucheta concludes .
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