EU CSDR Settlement Discipline Regime: Penalties dry-run – LuxCSD
As previously communicated in Announcement L20024, LuxCSD1 will participate to T2S dry-run from 14 September 2021 to 31 January 2022.
Reporting
From 14 September 2021 customers can schedule the new MT537 Statement of Cash Penalty report in Xact Web Portal.
Two new reports are available:
- Daily Statement of Cash Penalties: This includes details of the calculation;
- Monthly Aggregated Report: this includes the global net amount of cash penalties to be paid or received by the customer.
Customers can send a SWIFT MT599 to the attention of PRGconnect asking for the report to be scheduled. In the message, the following information must be specified:
- Account number(s);
- Receiving BIC;
- Report Type and its frequency:
- Daily Statement of Cash Penalties:
- 08:30
- 09:30
- 10:30
- 11:30
- 12:00
- 13:00
- 13:30
- 14:30
- 15:30
- 16:00
- 16:30
- 17:00
- 18:00
- Monthly Aggregated Report: Yes / No
- Daily Statement of Cash Penalties:
In addition, the Xact Web Portal will be enhanced to enable customers to query and monitor the cash penalties related information.
The dry-run will be in line with the T2S schedule, whereas cash penalties will be sent as received from T2S.
Appeals
From the date when the cash penalty was reported and, latest, until the 10th PBD (penalties business day) of the next month (the “appeal period”), LuxCSD customers may challenge, for exceptional reasons, the application or calculation of a cash penalty, exclusively by using Xact Web Portal in addressing appeals to LuxCSD. Appeals sent via other communication media will not be considered.
Note: A maximum of 3 appeals per Xact Web Portal Organisational Unit can be sent during the dry-run.
During the dry-run testing, only customer appeals requesting a) to "amend" the underlying price used to calculate penalties by LuxCSD, or b) to completely remove penalties, will be accepted and trigger the recalculation or removal of a penalty. Other appeal types will be rejected.
Collection and distribution of net amounts
LuxCSD will not collect and distribute cash penalty fees during the dry-run. After the end of the dry-run, and activation of the settlement discipline on 1 February 2022, cash penalties calculated and applied during the dry-run will not be collected/distributed either.
Further information
Detailed technical specifications about the Xact Web Portal, the reporting of cash penalties and net amounts and the notification of the buy-in or cash compensation results will be communicated at a later stage.
For further information, customers may contact LuxCSD Client Services or their Relationship Officer.
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1. LuxCSD refers to LuxCSD S.A., registered office at 42, Avenue J.F. Kennedy, L-1855 Luxembourg, registered with the Luxembourg Trade and Companies Register under number B-154.449.