Settlement Discipline under CSDR
A trade must settle on Settlement Date. An additional 4 days is provided as an extension period. If settlement is not completed in this time frame, a Buy-in MUST be initiated.
There are specific rules for:
1. Buy-ins on transactions cleared by a CCP;
2. Buy-ins for transactions not cleared by CCP but executed on a trading venue;
3. Buy-ins for transactions not cleared by CCP and not executed on a trading venue;
4. Calculation and payment of cash compensation;
5. Payment of the buy-in costs and related price differences.