Settlement Discipline Regime (SDR): Information on reporting, collection and distribution of penalties – follow-up
Clearstream Banking1 further informs customers about the reporting, collection and distribution of penalties.
Bridge transactions
During the month of February, Clearstream Banking’s reporting of penalties on Clearstream Banking deliveries to Euroclear Bank was systematically reporting that the penalty would be part of the global net amount to be collected by the ICSDs (CMPU = Y). Following a fix jointly implemented by both ICSDs last weekend, the correct CMPU value for most of the impacted transactions has been reported to customers in the daily MT537 “FWAM” on Monday 28 February. A second update for the remaining transactions will be jointly processed during next weekend and will be reported to customers in the daily MT537 “FWAM” on Monday 7 March
T2S February monthly file
On 1 March, Clearstream Banking released the monthly file applicable to penalties calculated and reported by T2S in January. It was identified that:
- Field :69A::STAT – to report the collection period, wrongly reported the period of February instead of January (Field :69A::STAT//20220201/20220228)
- Field :98A::PAYD – to report the collection and distribution date, wrongly reported the 23 March instead of the 23 February (Field :98A::PAYD//20220323)
As this monthly file only applies to penalties for January 2022 that are not subject to collection and distribution, no corrected monthly file will be sent to our customers.
Daily penalty file sent on 14 February
In the daily penalty file dated 14 February, T2S penalties from 12 January were reported with a date of computation (:98A::DACO in Subsequence D1 PENACUR of MT537 PENA) of 12 January. However, new T2S cash penalties calculated on 11 February, that should have been reported with a date of computation of 11 February, have been incorrectly reported with a date of computation of 12 January. The Clearstream Banking database however contains the correct date of computation and will consider those T2S penalties, calculated in February, for the collection and distribution in March.
The Monthly MT537 PENA to be sent in March, for February penalties will include all penalties with a date of computation in February. As Clearstream Banking customers have received some T2S penalties with the incorrect date of computation, customers may experience reconciliation issues between the daily files and the monthly file.
Clearstream Banking recommends customers to:
- Identify cash penalties reported with an incorrect DACO, and
- Correct the DACO for those penalties.
To identify penalties with incorrect Date of Calculation, please compare the first 6 characters of the PCOM, with the reported DACO. If the reported DACO of a cash penalty is 20220112 and the PCOM starts with 2202** then the DACO is incorrect.
The identified cash penalties with incorrect DACO shall be corrected based on the PCOM of the cash penalty. The first 6 characters of the PCOM are the DACO of the penalty.
Reported DACO | PCOM | Correct DACO |
20220112 | 220211123456789 | 20220211 |
In the example below:
The penalty ‘220112123456789’ is correctly reported in Sequence D1 PENACUR with DACO = 12.01.2022. This penalty has been manually injected by Clearstream Banking on 11.02.2022.
The penalty ‘220211123456789’ is incorrectly reported in Sequence D1 PENACUR with DACO = 12.01.2022. This penalty is newly calculated/reported and should have been reported in another Sequence D1 PENACUR with DACO = 11.02.2022.
ACTUAL | EXPECTED |
:16R:PENACUR :11A::PECU//EUR :98A::DACO//20220112 :95R::REPA/CEDE/12345 :95P::CASD//DAKVDEFFXXX :95P::DCSD//DAKVDEFFXXX :22F::TRCA//CSDP :19A::GBNT//NEUR100, :16R:PENACOUNT :95P::REPA//ABCDDEFFXXX :22F::TRCA//CSDP :19A::AGNT//NEUR50, :16R:PENDET :20C::PREF//F220112123456789 :20C::PCOM//220112123456789 :22H::PNTP//LMFP :22H::CALM//MIXE :17B::CMPU//Y :25D::PNST//ACTV :24B::ACTV//NEWP :19A::AMCO//NEUR100, :99A::DAAC//001 […] :16D:PENDET :16S:PENACOUNT :16R:PENACOUNT :95P::REPA//EFGHDEFFXXX :22F::TRCA//CSDP :19A::AGNT//EUR50, :16R:PENDET :20C::PREF//N220211123456789 :20C::PCOM//220211123456789 :22H::PNTP//SEFP :22H::CALM//SECU :17B::CMPU//Y :25D::PNST//ACTV :24B::ACTV//NEWP :19A::AMCO//EUR50, :99A::DAAC//001 […] :16S:PENDET :16S:PENACOUNT :16S:PENACUR | :16R:PENACUR :11A::PECU//EUR :98A::DACO//20220112 :95R::REPA/CEDE/12345 :95P::CASD//DAKVDEFFXXX :95P::DCSD//DAKVDEFFXXX :22F::TRCA//CSDP :19A::GBNT//NEUR100, :16R:PENACOUNT :95P::REPA//ABCDDEFFXXX :22F::TRCA//CSDP :19A::AGNT//NEUR100, :16R:PENDET :20C::PREF//F220112123456789 :20C::PCOM//220112123456789 :22H::PNTP//LMFP :22H::CALM//MIXE :17B::CMPU//Y :25D::PNST//ACTV :24B::ACTV//NEWP :19A::AMCO//NEUR100, :99A::DAAC//001 […] :16D:PENDET :16S:PENACOUNT :16S:PENACUR :16R:PENACUR :11A::PECU//EUR :98A::DACO//20220211 :95R::REPA/CEDE/12345 :95P::CASD//DAKVDEFFXXX :95P::DCSD//DAKVDEFFXXX :22F::TRCA//CSDP :19A::GBNT//EUR50, :16R:PENACOUNT :95P::REPA//EFGHDEFFXXX :22F::TRCA//CSDP :19A::AGNT//EUR50, :16R:PENDET :20C::PREF//N220211123456789 :20C::PCOM//220211123456789 :22H::PNTP//SEFP :22H::CALM//SECU :17B::CMPU//Y :25D::PNST//ACTV :24B::ACTV//NEWP :19A::AMCO//EUR50, :99A::DAAC//001 […] :16S:PENDET :16S:PENACOUNT :16S:PENACUR |
Penalties reported in February 2022 and subject to collection and distribution in March 2022
Following the Settlement Discipline Regulation entering into force on 1 February, a number of system defects have been identified either in Clearstream Banking or with its local providers. These defects have resulted in some penalties not having yet been reported to the customers.
Some fixes have been implemented during February and missing penalties have been reported to customers in their daily MT537 report. Not all penalties have yet been reported, adjusted or removed. Additional fixes are foreseen to ensure adequate reporting to customers in one of the forthcoming daily MT537 reports and in the monthly MT537 report. These penalties will be taken into account for the collection and distribution in March 2022.
Further information
For further information, customers may contact Clearstream Banking Client Services or their Relationship Officer.
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1. Clearstream Banking refers to Clearstream Banking AG, registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany, and registered in Register B of the Amtsgericht Frankfurt am Main, Germany, under number HRB 7500.