Banks and financial markets: settlement finality in payment and securities settlement systems

ECSDA is pleased to submit its feedback to the European Commissions consultation on the proposal for a Regulation on settlement finality, repealing Directive 98/26/EC and amending Directive 2002/47/EC on financial collateral arrangements. Please see the response attached.

Amongst others, in its response, CCP Global points out some of the proposed provisions which would not ensure a level playing field between the EU and third-country systems and advocates for equal protections for all participants in terms of insolvency law.

The MIS package is a major initiative aimed at achieving both regulatory and operational progress, building on the existing regulatory framework and the philosophy of the SIU, with a view to strengthening the European financial marketplace, improving the efficiency of processing chains, and encouraging long-term investment through favourable market conditions.

The following are the preliminary comments of the Blockchain and Virtual Currencies Working Group (BVC WG) on the proposal for a Regulation about settlement finality and repealing Directive 98/26/EC and amending Directive 2002/47/EC on financial collateral arrangements [2025/0381 (COD)] published by the European Commission on the 4th of December 2025 as part of its Market Integration and Supervision Package (MISP).

Please find our full position attached. We support the objective of enhancing legal certainty and harmonisation in relation to settlement finality across the EU. However, as currently drafted, the proposed Settlement Finality Regulation (SFR) raises significant concerns regarding the scope and treatment of netting, particularly contractual closeout netting in bilateral arrangements.

Gaynor Wood General Counsel 03 April 2026 Subject: Proposal for a Regulation of the European Parliament and of the Council on settlement finality and repealing Directive 98/26/EC and amending Directive 2002/47/EC on financial collateral arrangements To whom it may concern, CLS Bank International (“CLS”), the operator of the CLS settlement system (the “CLS System”), appreciates the opportunity to comment on the…

Opening of the attached position paper · the full paper is on the Commission’s record (source link above)

The SFD has provided a remarkably stable and robust legal framework for over 20 years (which have seen most other regulatory frameworks considerably changed) and EU-based systems rely on the central concepts of the SFD, as reflected in their system rules. Whilst the objective of this review is clear and important, it is also important to avoid upsetting these robust proven concepts unnecessarily.

The MIS package is a major initiative aimed at achieving both regulatory and operational progress, building on the existing regulatory framework and the philosophy of the SIU, with a view to strengthening the European financial marketplace, improving the efficiency of processing chains, and encouraging long-term investment through favourable market conditions.

European Association of CCP Clearing Houses submission (see full response attached) We support the objective of harmonising settlement finality across the Union and reducing fragmentation; however, the proposal introduces complexity, overlaps with existing frameworks and creates legal uncertainty for CCPs already subject to detailed regulation.

The Association for Financial Markets in Europe (AFME) welcomes the European Commissions proposed Settlement Finality Regulation (SFR), which modernises the existing Settlement Finality Directive to accommodate distributed ledger technology (DLT) and other emerging technologies while preserving critical protections for transfer orders, netting, and collateral.

We appreciate the opportunity to share our members views on the European Commissions Proposal for a Regulation on Settlement Finality (SFR), repealing Directive 98/26/EC. The migration of the provisions from the current Directive to a forthcoming Regulation seems positive in the interests of harmonization in the EU thereby reducing legal uncertainty and enhancing predictability.

We support the replacement of the SFD by a regulation ensuring greater harmonization and the adaptation of new technologies. However, we are concerned that the FCD is not addressed in a similar manner. Detailed Comments: Art. 1 (2): The current approach requiring member state registrations for 3rd country systems should be replaced by a single EU registration to avoid legal uncertainties within the EU. Art.

Euroclear Position Paper Settlement Finality Regulation (SFR) – EU Market Integration Package April 2026 Executive Summary Euroclear supports the objective of ensuring robust and consistent settlement finality arrangements across the EU and welcomes the transition to a regulation to the extent this creates further convergence in the EU, for example as regards the entities that may qualify as ‘participant’ in a…

Opening of the attached position paper · the full paper is on the Commission’s record (source link above)

Milan, 2 April 2026 European Commission Submitted via the EC website Prot. n. 18/26 MFE/gc RE: AMF Italia’s response to the European Commission “Have your Say” – Proposal for a Regulation of the European Parliament and of the Council on settlement finality and repealing Directive 98/26/EC and amending Directive 2002/47/EC on financial collateral arrangements AMF Italia welcomes the opportunity to provide comments on…

Opening of the attached position paper · the full paper is on the Commission’s record (source link above)

Finance Denmark welcomes and supports the proposal from the Commission in the omnibus package to convert the Settlement Finality Directive into a Regulation. A common regulation provides legal certainty for payments and securities settlement systems in the EU in cross-border situations.

The Spanish Banking Association welcomes the proposal for a regulation, considering that it addresses issues that are essential for the proper functioning of payment systems and securities settlement systems in the European Union.

Filed in Spanish · English published by the European Commission

The Swedish Securities Markets Association (SSMA) welcomes the European Commissions Market Integration and Supervision Package (MISP) and supports the overarching goals of market integration and increased competitiveness but would like to emphasise that well-functioning local ecosystems remain crucial.

We support the European Commissions intention to harmonize the settlement finality framework. The SFR reform is particularly important for LSEG, as we operate two settlement systems: LCH SA within the EU and LCH Limited as a registered third country system.

The CNMV's Advisory Committee has been set by the Spanish Securities Markets Law as the consultative body of the CNMV. It is composed by market participants, and its opinions are independent from those of the CNMV.

The CNMV supports the objectives pursued by the Market Integration Package, in particular the reduction of fragmentation, the strengthening of market integration and supervisory convergence, and the enhancement of the Unions competitiveness.