CSDR penalties: Update on LuxCSD CCP and appeals processes
LuxCSD1 advises customers to consider the following information in relation to the go-live of the CSDR penalty regime on
1 February 2022
Penalties related to CCP-settlement instructions
Subject to SDR RTS Article 19, penalties related to CCP-cleared transactions shall not be paid through the CSDs but through the CCPs from their clearing members. The identification of the relevant penalties is with “CMPU flag” information as provided by LuxCSD to its customers in the daily and monthly penalties reports.
Due to an internal processing issue, the information provided by LuxCSD was not correct as it flagged by default all penalties as being subject to payment processing via LuxCSD; this impacted any CCPs for which the settlement is processed via LuxCSD2.
New penalties are correctly reported as from 31 January 2022. Previously reported impacted penalties will not be corrected.
For the relevant CCP-penalties, the impacted fields in the reporting are:
SWIFT MT537 “daily/ monthly penalties”
Trading Party Capacity (PENACUR) now shows “:22F::TRCA//CCPA” (Note: For penalties applied to Clearing members, the relevant field 22F::TRCA impacted by the fix is the one in subsequence PENACOUNT.)
Amount Computed (PENDET) now shows “:17B::CMPU//N” (no)3.
Xact Web Portal
Field “Amount Computed Flag” now shows “No”.
Billing of customer penalty “appeals” rejected by LuxCSD or its providers
According to the LuxCSD Fee Schedule, appeals that are rejected after assessment by LuxCSD or the relevant penalty mechanism provider (for example, T2S) will be subject to a rejection fee in line with the hourly rate for non-STP and manual services.
In the interest of its customers allowing them to accommodate to the new penalties processes, LuxCSD has decided to not apply its own “appeal rejection” fees up to 31 July 2022. After this time period, the relevant fees will be reported in the LuxCSD monthly invoicing and charged accordingly.
Further Information
For further information, customers may contact 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.
2. CBF-i internal and Bridge “CCP penalties” settling via Creation are not impacted as the reporting was already correct.
3. "N“ means that the CSD will not consider this penalty amount in its monthly penalties payment process.