Commission Delegated Regulation (EU) 2018/1229 of 25 May 2018 supplementing Regulation (EU) No 909/2014 of the European Parliament and of the Council with regard to regulatory technical standards on settlement discipline (Text with EEA relevance) (c. 1229)

CHAPTER III U.K. Measures to address settlement fails

Section 2 U.K. Cash penalties

Article 19 U.K. Penalty mechanism where the participant is a CCP

Where the failing or the receiving participant is a CCP, CSDs shall ensure the following:

(a)

that CCPs are provided with the calculation of the cash penalties for the failed settlement instructions submitted by those CCPs;

(b)

that CCPs collect the cash penalties referred to in point (a) from the clearing members that caused the settlement fails;

(c)

that CCPs distributes the cash penalties referred to in point (b) to the clearing members that are affected by the settlement fails;

(d)

that CCPs report to the CSD on the penalties that they have collected and distributed, on a monthly basis.