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)