In February 2021, the European Commission published a consultation to gather views on the functioning of Directive 98/26/EC on settlement finality in payment and securities settlement systems (the “Settlement Finality Directive” or the “SFD”). The SFD protects a duly designated, notified and published system (“SFD system”) and its participants from the legal uncertainty and unpredictability inherent in the opening of insolvency proceedings against one participant. The FMLC has submitted a response drawing attention to legal uncertainties which have arisen owing to developments in the business, technological and regulatory environment since the last review of the SFD in 2008/2009.
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