ECSDA details further the implementation of fails penalties

ECSDA details further the implementation of fails penalties

On 9 March 2021, ECSDA published the updated version of the ECSDA CSDR Settlement Fails Penalties Framework.

Cash penalties are required by the EU legislators to be imposed by CSDs and aim at increasing settlement efficiency rates. The requirements are outlined in the CSD Regulation (EU 909/2014) and its underlying Standards.

The document can be used by Central Securities Depositories (CSDs) and their participants as a market practice on how CSDs should develop harmonised settlement fail penalties mechanisms. The document is meant to be evolving, along with the evolution of the views of the competent authorities on the matters under their review. It can be used by the CSDs and their participants to start their IT developments to comply with CSDR Settlement Fail penalties-related requirements.

This version of the document provides the changes in comparison with the previous version in grey and the pending assumptions in yellow.

The ECSDA Framework can be found here.

Earlier, ECSDA also made public the responses to the practical questions on CSDR Cash penalties implementation.

You will see that this document will be updated regularly while some answers to the questions will continue to arrive and CSDs will advance further in their implementation. It represents a centralised view on the CSDs practices. (The advancements of CSDs’ views may be made available even quicker to their direct participants in CSD’s own communication.)

ECSDA response to practical questions of CSD participants on CSDR penalties implementation Рupdated version 10/11/2020


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