Az NKFI Alapból megvalósuló program

Dorsum is proud to benefit from the European Commission's Brexit Adjustment Reserve.
Learn more about our project aimed at aligning our Wealth Management Suite to the UK market.
(Hungarian content)

SECURITIES SETTLEMENT DISCIPLINE – SDR REGULATIONS – PART I

Kattintson ide a magyar verzióért.

Last year, for the first time in our history, the whole world was confronted with the reality of a pandemic and its social, economic consequences that affect everyday life. Countries and citizens are still occupied with fighting the epidemic and maintaining their own economic stability.

In the EU capital markets had no time to relax after the first wave of the crisis, because of incoming new regulations that place a significant burden on financial market participants. In our two-part series, we present the key information about this new regulation and the details of its implementation, as well as the challenges for IT infrastructure.

What is the new regulation?

The new regulation is called the Settlement Discipline Regime (SDR) which is comprised of the following three pieces of legislation:

Regulation No 909/2014/EU of the European Parliament and of the Council, which places particular emphasis on establishing and maintaining a clearing discipline, setting standards for not only CSDs (Central Securities Depositories) but also CCPs (Central Counterparties).

Regulation of the European Committee 2018/1229, the provisions of which are closely interlinked as they deal with measures to monitor the failure of settlement and the allocation (and collection) of fines in case of settlement failure. It also encourages adherence to settlement disciplines by defining operational details of the SDR buy-in procedure for the prevention of non-settlement cases.

The detailed rules for CSDR (Central Securities Depositories Regulation) on fines are laid down in Regulation No 2017/389/EU: the parameters for calculating fines for settlement failure and the addition of CSDs’ activities in recipient states

The original date of the entry into force of the provisions would have come at the worst possible time:

The original date of application of the SDR provisions was 13 September 2020, as first amended by a technical standard issued by ESMA (European Securities and Markets Authority) to 1 February 2021. Subsequently, on 28 July 2020, the official news was published on ESMA’s website that work had begun on a proposal to postpone the entry into force of the CSDR clearing discipline until 1 February 2022, mainly due to the regulatory projects of CSDs and the difficulties of IT deliveries caused by the pandemic.

The request for a postponement of the entry into force came mainly from the European Commission.

As a consequence, the new deadline for legal compliance is 1 February 2022.

The relevant detailed report was published by ESMA on its website on 28 August 2020.

What gave rise to SDR regulation?

The European Union’s harmonization efforts have given rise to SDR regulation, which aims to introduce a single clearing system for each national securities and capital market, with the same penalties for uniform ‘non-compliance’ and even subsequent procedures. So, in fact, as its name implies, they want to establish a clearing discipline because of the increased number of failed settlements and the SDR buy-ins procedures under individual national clearing houses.

Therefore, the European Union has established uniform requirements for the clearing of financial instruments within the Union and lays down rules for the organization and management of CSDs in order to promote safe, efficient and smooth settlement. Directives 98/26 / EC and 2014/65 / EU on the improvement of securities settlement and central securities depositories in the European Union and the regulation No 909/2014/EU amending the No 236/2012/EU regulation (CSDR), entered into force on 18 September 2014 and is directly applicable in all Member States of the European Union, including Hungary, due to the form of its decree.  The provisions of the CSDR to which execution rules (Regulatory Technical Standard-RTS, or Implementing Technical Standard-ITS) are linked, as a general rule, should only apply once the execution rules have been adopted and entered into force.

The aim and key elements of CSDR are:

The main objective of CSDR is primarily to increase secure and efficient clearing and settlement infrastructure (CSD) in the EU, inter alia by ensuring:

  • Shorter settlement periods
  • Settlement disciplinary measures (mandatory cash penalties and their “settlements” in case of settlement failure, settlement failure reporting)
  • Obligation to dematerialize most securities;
  • Strict prudential and business rules for CSDs;
  • Strict access rights to CSD services; and
  • Increased prudential and supervisory requirements for CSDs and other institutions providing ancillary banking services for securities settlement.

As we can see, the new SDR regulations are creating a rather complex regulatory framework. We encourage you to stay with us in the next part of our series, in which we will show how all these provisions are implemented in Hungary and what IT issues are raising.

The exact text of the SDR Regulation can be found here:

DELEGATED REGULATION OF THE EUROPEAN COMMISSION 2018/1229 of 25 May 2018 supplementing Regulation No 909/2014/EU of the European Parliament and of the Council as regards regulatory technical standards on settlement discipline (europa.eu)

Further information and regulatory Q&A information are available on the European Commission’s website.

Share this article

RELEATED ARTICLES

  • All
  • blockchain
  • crypto
  • Egyéb kategória
  • ESG
  • Events
  • Insights
  • News
  • Regulation
  • Switzerland
  • UK
  • White papers

Every good business relationship starts with a single step!

Martina Bagarić Maršić

Head of Business Development CEE Region

Martina doesn’t believe in transactional sales — she builds business ecosystems based on genuine partnership. With over 15 years in the industry, she consciously steps away from aggressive tactics, championing an “ethical sales” approach instead. For her, building transparency and trust is the absolute core of any business relationship. A secret introvert, she relies on a quiet hour of morning routine to recharge her inner peace, ensuring she can give her absolute best to her clients all day.

Her superpower? 
Reading the room. She instantly decodes true needs, so clients feel like partners, not just transactions.

What won’t she do? 
Parachute jump. She will gladly help redesign your business strategy or share practical life advice, but she will never jump out of a perfectly good airplane.

Kadra Aden

Head of UK Product

Kadra started her career writing code, which means she doesn’t just manage products, she understands their DNA. As Head of UK Product, she uses this technical fluency to translate complex business needs into reality. She digs past the initial “wish list” to find the actual root problem, ensuring Dorsum builds solutions that work in the real world, not just on a whiteboard.

Her superpower? 
The Strategic “No.” She isn’t afraid to kill a weak feature to save the product vision.

What won’t she do? 
Sit still or sing. She works from a treadmill desk to keep moving, but hand her a karaoke mic, and she’ll clear the room instantly.

Hannah Buckle

Head of UK Sales

Hannah proves that high-stakes tech sales doesn’t have to be a rigid, jargon-filled grind. She brings a genuinely fun, open, and relaxed energy to the room, believing that the best partnerships start with a simple, honest chat. And while she keeps things light, she is fiercely persistent when it comes to solving business problems. Whether she is untangling a messy digital ecosystem or helping a team scale, her secret weapon is that she simply never gives up. She operates with radical honesty, zero fluff, and a commitment to keeping the process as enjoyable as it is successful.

Her superpower? 
Relentless persistence. She never gives up on a problem, bringing a fun, conversational vibe to even the toughest business challenges.

What won’t she do? 
Use clinical buzzwords. She solves complex tech puzzles daily, but happily leaves words like “diagnostic” to the Apple Store.

Szilvia Kovácsné Szántai

HR director

Szilvia has been the heart of Dorsum’s community since 2006. While her title says HR Director, she acts more like a human bridge between business logic and employee well-being. She always looks past the bullet points on a CV to find genuine curiosity and loyalty, knowing that true team spirit cannot be automated. She is the kind of leader who will boldly trade a flashy corporate party to secure comprehensive health insurance for everyone. After a week of navigating complex group dynamics, she unplugs completely, relying on time with family and friends 
as her ultimate reset button.

Her superpower? 
Reading the room. She instantly tunes into group dynamics, sensing hidden tensions in a meeting long before anyone says a word.

What won’t she do? 
Talk strategy before coffee. She never sacrifices humanity for results and refuses deep discussions before her own system boots up.

Péter Sallai

Chief Technology Officer

Péter is the kind of CTO who doesn’t just set direction—he understands and enjoys technology all the way down to its deepest layers. He believes great architecture isn’t built for fashion, but for endurance: systems should stay strong under real load and evolve as needs change. At Dorsum, he designs and leads teams building long-lasting platforms that can modernize without big-bang rewrites—stable foundations, modular components, and the mindset of being able to “swap the engine mid-flight.”
He makes strategic choices with engineering pragmatism: spotting what will remain useful versus what’s just noise, and translating complex technical topics into clear language for developers and clients alike. And he stays hands-on—when something matters, he dives in and builds.

His superpower? 
Tech Intuition + Deep Dive. He sees the big picture, but can go all the way into the details when the root cause—or the right decision—lives there.

What won’t he do? 
Predict the lottery. He will happily predict future tech trends, but please don’t ask him about the winning numbers.

Miklós Muszkuly

Chief Project Officer

Miklós began his journey at Dorsum as a trainee in 2008. After expanding his expertise at the Big Four and major banks, he returned to lead our most complex projects with the calm focus of a seasoned athlete. He knows that software is just the final output; true delivery is about providing the stability that makes clients feel completely secure. Operating on the strict philosophy that there is a massive difference between a project being “done” and functioning “well,” he never settles for the former. When project chaos hits, his grounded approach, fueled by family time and sports, ensures our partners always know they will “never walk alone.”

His superpower? 
Elite situation awareness. He instantly decodes complex dynamics, pinpointing the hidden risks and success factors of any project.

What won’t he do? 
Settle for “just working.” He strictly separates functioning from functioning well, and flat-out refuses to compromise.

Magdolna Pánczél

Country Manager

Managing two international subsidiaries requires a rare blend of adaptability and order. While Magdi naturally approaches the corporate world with the logical rigor of a Six Sigma expert, she understands that the people behind the projects are beautifully varied. She operates as a dedicated coach for her teams, patiently explaining the “why” and “how” behind a strategy rather than simply delegating tasks. After a week of successfully organizing complex international operations, she unplugs by embracing the organized chaos of family life and spontaneous weekend travels.

Her superpower? 
Contextual empathy. She instantly tunes into the unique mindset of any new client or culture, finding the exact common ground to build trust.

What won’t she do? 
Stay home on a weekend. After a highly disciplined workweek, she absolutely refuses to sit still on a Saturday.

Gábor Jandácsik

CFO & COO

With a three-decade career spanning both risk management and sales, Gábor brings a rare dual perspective to financial leadership. He approaches his role as CFO and COO much like a classic football defender: he knows the backline offers the best strategic view of the field, but he also understands that without scoring goals, the business cannot win. For him, financial modeling isn’t a tool to hold the team back, but a transparent safety net that empowers the organization to confidently chase growth. After a fast-paced day of balancing risk and reward, he relies on quiet “processing time” to mentally organize his thoughts, keeping his mind clear for genuine human connection.

His superpower? 
Stepping into your shoes. He instantly understands the real motivations of clients and colleagues without judgment.

What won’t he do? 
Walk away wearing them. He avoids unsolicited “if I were you” advice, giving you the context but leaving you the freedom to pick your own pa

Bálint Fischer

Chief Business Development Officer 

Bálint blends banking pragmatism with a builder’s curiosity. Having spent long years sitting in the client’s chair at major financial institutions, he intuitively understands the anxieties of digital transformation before they are even spoken. He is a “visionary doer” who combines a mathematician’s logic with a deep passion for connecting people, ensuring that technology serves human goals, not the other way around. Since joining Dorsum, he has been the driving force behind our international expansion and innovation. 

His superpower? 
Finding the courage to challenge “limits” that exist only in our heads. 

What won’t he do? 
Accept “because we’ve always done it this way”
as a valid answer. He is far too curious for that. 

Róbert Kő

Chairman of the Board

Robert brings the “emotional part” to the boardroom, focusing entirely on the people and trusting the experts with the professional execution. He believes that genuine trust is what carries a project to success, not just the contract. He is the one who finds cooperation even in a defeat, always looking for the positive outcome where others might see a loss.

His superpower? 
Creating balance in any conversation. He instinctively helps partners find their place in a meeting, ensuring the discussion is authentic and leads to a real connection.

What won’t he do? 
Ask “is there another way?”. He simply creates one, even if he must build the bridge himself.

Mariann Mészáros

Chief Executive Officer

Mariann brings over 25 years of enterprise discipline to Dorsum, yet she leads with a refreshing reliance on “common sense” over rigid corporate playbooks. She understands that strategy is nothing without the people who execute it, so she focuses on aligning organizational capability with business targets. For her, profitability is key, but she isn’t afraid to override the financial targets if the long-term market position demands it. She views leadership not as a solo performance, but as a shared responsibility. She strictly adheres to the motto that “no one should be a leader without empathy,”.

Her superpower? 
Balancing Strategy, Culture, and Numbers, instinctively knowing which one needs a push.

What won’t she do? 
Play the lonely hero. Lone wolves look cool in movies, but in business, they just get tired.