Information regarding VPS Penalty Regime

On July 23, 2014, the EU adopted Regulation No. 909/2014, Central Securities Depository Regulation (CSDR), aiming to harmonise the securities settlement and CSD regulations in the EU.

An important part of this legislation was given in the form of technical standards to ensure a safe and efficient European Settlement Discipline regime.

This includes the following main elements:
• Measures to prevent settlement fails
• Requirements to monitor and report fails
• Requirements for CSDs to charge cash penalties to participants that cause settlement fails
• Rules requiring a mandatory buy-in

In order to meet these requirements, VPS has made amendments to its Settlement System.
VPS has participated in collaboration with all EU CSDs and described a common framework for how a Cash Penalty Regime can be implemented in each CSD.

This document describes how VPS will introduce a Penalty Regime in the VPS system based on the common ECSDA Settlement Fails Penalty Framework.


CSDR Endringer 2020 NO (pdf)