On 20 November 2019, the European Central Securities Depositories Association published an updated version of its settlement fail penalties framework.
The framework aims to achieve compliance with the Central Securities Depositories Regulation (CSDR) and harmonisation of rules for the creation and operation of settlement penalties mechanisms. The framework focuses purely on the settlement fails penalties-related parts of the CSDR settlement discipline regime and applies to all central securities depositaries subject to the CSDR or equivalent legislation.
The previous framework was published in July 2019. In the November 2019 version, material changes are highlighted in light grey and relate to matters including settlement fail penalties, the collection and redistribution of penalties and the daily reference price needed for penalty calculations.