Central Securities Depositories Regulation FAQ

With CSDR, CSDs will calculate and report (daily and monthly) cash penalties on settlement account level. Following CSDR RTS Art. 19, Eurex Clearing has to collect/distribute the cash penalties based on clearing member level for the cleared business (CCP). Eurex Clearing will aggregate/net all penalty debit/credits of a clearing member (per currency,CSD, etc) towards Eurex Clearing. Penalty collection/distribution of the net amounts will be done monthly on the 17th business day for the previous month period, in sync (same day) with the OTC penalty distributions by the CSDs. Eurex Clearing will use the member clearing cash account for that purpose.

Eurex Clearing will provide daily and monthly penalty reports derived out of the CSD's MT537 penalty message, containing enriched data on CM level which will allow CMs to do own breakdowns.
In addition, Eurex Clearing will provide a monthly Billing report showing monthly net payment information and an own invoice information for the actual payment. Please refer to the Release Notes and Report Reference Manual for details of reports.

As CCP are obliged to collect penalties on Clearing Member level, for collection existing billing process with T2 cash accounts will be used, but with debit/credit date 17th of followinf month in line with the CSDs.

Eurex Clearing will provide a monthly Billing report showing monthly net payment information and an own invoice information for the actual payment. The payments will have a specific service ID/reference.

In line with the CSD process and EACH agreement, the effective payment has to be done on cash account on 17th BD, to allow full collection and distribution. Cutoff time is closing of T2.

This will be performed as manual process by operations.

No, the same cash account as used today at Eurex Clearing for fines and fees will be also used for the penalties.

Yes, no relation between credit and debit. No partial payment of penalties is allowed, consequently default procedure is initiated in case of a permanent cash fail.

L1 Art. 18 is applicable to CSDs. The relationship of a Clearing Member and Eurex Clearing is the contractual agreement of the Clearing Conditions. The contractual relationship does not change with CSDR.

Penalties will be collected via cash accounts used for Eurex Clearing fee collection, usually T2 Account provided by the member. New CSDR specific daily and monthly reports from Eurex Clearing will reference to the delivery instruction, which caused the penalty.

Penalties will be applied on CM Level, aggregated per CM, CSD and currency.

Monthly aggregated penalties will be credited/debited from CM cash accounts.

Penalties will be not offset against other payments. For details of the penalty payment process, please have a look at the Release Notes (page14: Monthly penalty process at Eurex Clearing).

As a regulatory penalty, CSDR will substitute current ESMA Short Selling fines.
But contractual fines as fines over dividend record day and fines for late deliveries out of notifications and allocations for bonds will stay as today and will be further reported on CB225. 

Eurex Clearing will use the payment method that is assigned in Billing to a member cash account. Only realtime and overnight methods are fulfilling the requirement to have  all collections and distributions on same day (17th BD). Collection and distribution method are the same.

Eurex Clearing will provide a monthly Billing report showing monthly net payment information and an own new invoice information for the actual payment.

Partial payments are not forseen with CSDR, full value distribution to all receipients. Eurex Clearing will cover potential unbalances (interim). Only in case of CSD unbalanced calculations, Eurex Clearing will apply a pro-rata distribution as described in the Eurex Clearing CSDR Release Note.

There are some special member payment methods set up today like SEPA, Überweisung, LSV+ that do not fulfill the requirement of timely payments. Eurex Clearing will contact related members.

Clearing Member already have cash accounts with Eurex Clearing set up in for Billing that are also used for the CSDR penalty payments.