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Buy-in Agent

Deutsche Börse Buy-in Agent Service

Deutsche Börse Group is taking another important step in its efforts to best support both the financial industry and the regulatory agenda. With the Deutsche Börse Buy-in Agent Service, the Group plans to launch a solution for an industry-wide challenge posed by the new regulatory framework of the Central Security Depository Regulation (CSDR).

The new regulation on settlement discipline for securities trading transactions obliges the buyer in a securities transaction to initiate a buy-in process against the seller should the settlement of a transaction fail after a certain period of time. This requires a neutral third party who acts as buy-in agent. Subject to regulatory approval, the Deutsche Börse Buy-in Agent Service closes this gap and enables market participants to comply with the European regulation that will come into force in Q3/2020. In addition, the solution provides a high level of standardisation and automation in order to resolve the operational burden which is associated with the new mandatory buy-in process.

The buy-in agent will therefore accepts buy-in requests from registered clients, source the securities in automated auctions, and deliver the securities on the same day to the clients’ account of choice. All costs associated with the buy-in can be charged to the seller.

In addition to the actual buy-in execution, the Deutsche Börse buy-in agent will offer the following services:

  • On-hold instruction of the failed delivery by start of the buy-in
  • Cancellation of the failed delivery by end of the buy-in
  • Notification management with seller and CSD
  • Calculation and settlement of cash differences and cash compensations
  • Settlement instructions for cash and securities with power of attorney 
  • Identification and resolution of settlement failure chains and cycles

The buy-in agent project team can be contacted under the following e-mail address: buyinagent@deutsche-boerse.com