Dear Sir/Madam,
This is to inform you that Commission Delegated Regulation (EU) No 2023/1626 of 19 April 2023 amending Delegated Regulation (EU) No 2018/1229 supplementing Regulation (EU) No 909/2014 of the European Parliament and of the Council with regard to regulatory technical standards on settlement discipline (SDR) has been amended. The amending Regulation, which will take effect on 2 September 2024, concerns the penalty mechanism for settlement fails relating to cleared transactions submitted by CCPs for settlement.
As a result, penalties for failure to settle cleared transactions submitted by CCPs will have to be not only calculated by CSDs after the above-mentioned date, but also collected from and distributed among the participants concerned.
KELER will implement the following changes to the MT537Pena messages in order to comply with the legislation:
- KELER will continue to maintain the CCPA flag in the Party Capacity Indicator in the (:22F::TRCA) field for settled transactions submitted by CCPs.
- However, for the above orders, the Amount Computed Flag (:17B::CMPU) will always contain "Y" (YES), which means that KELER will take into account the penalties for failure to settle settlement orders submitted by CCPs (KELER KSZF) in the aggregation, which will be included in the netting round for penalties.
Therefore, as described above, after the effective date of the change, KELER will generate one PFOD order for each participant (at the KELER main account level), which will include the penalty charges for failed settlement orders that are included in the settlement and those that are not. KELER does not plan to make any further changes to the MT537Pena messages.
If you have any further questions regarding the above, please contact us at this email address: intezmenyi.kapcsolatok@keler.hu or penalty@keler.hu.
Best regards,
KELER Ltd.