Clifford Chance

European Commission Launches SFD and FCD Consultations

29 March 2021

The European Commission has recently launched two targeted consultations on the Settlement Finality Directive (98/26/EC) (SFD) and the Financial Collateral Directive (2002/47/EC) (FCD).

The consultations consider issues arising from market developments and regulatory changes and aim to ensure coherence across the different legislative frameworks in which the two directives have been operating. The "trigger" for the consultations was Article 12a of the SFD, requiring the European Commission to produce a report on the SFD by 28 June 2021 but, due to the close links between the two directives, the European Commission has decided to review both in parallel.

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