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)

s.art002

Measures concerning professional clients

• Ensure professional clients provide settlement information and confirm transactions

s.art003

Measures concerning retail clients

• Your retail clients must send settlement info by midday on the next business day

s.art004

Settlement facilitation and processing

• Process settlement instructions automatically and notify manual interventions

s.art005

Matching and population of settlement instructions

Other duties (1) — Crown / regulator

• Central Securities Depositories must provide real-time matching and enforce instruction matching Statutory regulator

s.art006

Tolerance levels

• Set tolerance levels for settlement amounts

s.art007

Cancellation facility

• Set up a bilateral cancellation facility for matched settlement instructions

s.art008

Hold and release mechanism

Other duties (1) — Crown / regulator

• CSDs must set up a hold and release mechanism for settlement instructions Statutory regulator

s.art009

Recycling

• Recycle failed settlement instructions until settled or cancelled

s.art010

Partial settlement

Other duties (1) — Crown / regulator

• Allow partial settlement of instructions Statutory regulator

s.art011

Additional facilities and information

• Offer real-time settlement status and counterparty notifications

s.art012

Derogation from certain measures to prevent settlement fails

• CSDs must assess settlement fails thresholds annually and notify regulator

s.art013

Details of the system monitoring settlement fails

• CSDs must monitor settlement fails and cooperate with major participants

s.art014

Reporting settlement fails

• Report settlement fails to the competent authority

s.art015

Public disclosure on settlement fails

• Publish annual settlement fail data on your website

s.art016

Calculation and application of cash penalties

Other duties (1) — Crown / regulator

• CSDs must calculate and apply cash penalties for settlement fails daily Statutory regulator

s.art017

Collection and distribution of cash penalties

• CSDs must collect and distribute cash penalties for settlement fails monthly

s.art018

Costs of the penalty mechanism

• Disclose penalty mechanism costs and charge participants separately

s.art019

Penalty mechanism where the participant is a CCP

Other duties (1) — Crown / regulator

• CSDs must manage cash penalty mechanism for CCP settlement fails Statutory regulator

s.art023

Application of partial settlement

• Partially settle securities instructions when partial delivery is possible on the last day of the extension period

s.art025

Contractual arrangements and procedures

• Establish contractual arrangements and procedures for buy-in process

s.art026

Initial verification

• Verify buy-in feasibility after extension period and act accordingly

s.art027

Buy-in procedure and notifications

• CCPs must run buy-in auctions or appoint buy-in agents after settlement fails

s.art028

Initial verification

• Check if buy-in is possible after a settlement fail and act accordingly

s.art029

Buy-in procedure and notifications

• Follow the buy-in process when a trade fails to settle

s.art031

Buy-in procedure and notifications

• Appoint a buy-in agent and notify the failing party after a settlement fail

s.art033

Payment of the cash compensation

• Failing trading venue members must pay cash compensation for settlement fails

s.art035

Payment of the price difference

• Pay price difference if buy-in price exceeds trade price

s.art038

Duration of deferral of the execution of a buy-in

• Follow Article 37 timeframes when deferring a buy-in execution

s.art041

Settlement information in the absence of direct transaction feed from the trading venue

• Identify trading venue and transactions in settlement instructions when no direct feed