Following CSDR/EACH rules: 1. Countervalue of failing instructions have to be paid. The market value of the financial instruments on the business day before the payment of the cash compensation will then substitute the securities component of the settlement instruction and shall also be paid. In case the cash substitution is lower than the settlement counter value to the receiving CM, the failing CM has to pay the price difference.
Please refer to the Eurex Clearing CSDR Release Notes for further details.
This will be a part of Buy-in User Guide.
For illiquid shares: 2nd attempt on next day (for remaining full or partial quantity), all other instrument types (and after 2nd attempt for illiquid shares): Cash compensation.
Yes.
The price according to CSDR L2 RTS Art. 32 has to be used: The market value without adding any premium should be considered for the determination of the cash settlement price. Please refer to the Eurex Clearing CSDR Release Notes for further details.
Yes, Cash Compensation amount will be collected from failing member(s) and forwarded to the receiving member(s).
Please refer to the Eurex Clearing CSDR Release Notes for further details.
Not a penalty as per CSDR, but a fee/fine to cover Eurex Clearing costs.
All costs relating to the Buy-in shall be paid by the failing Clearing Member. Eurex Clearing will bill these costs (e.g. for Buy-in auction) to the failing Clearing Member separately as today.
Via cash payment as today.
Yes.
In case of any questions or your require further information, please contact us at client.services@eurex.com.
