CSDR cash penalties payment: Application of late funding charges
LuxCSD1 reminds clients to comply with their CSDR Settlement Discipline Regime obligations as reflected in LuxCSD's governing documents in regard to the timely funding of their cash accounts allowing to settle monthly CSDR debit penalties settlement instructions on the intended settlement day2.
Late payment fees applied by local markets will be charged to failing clients.
Background
Clients that are not fully funding the cash amounts due in the required currency, block the finalisation of the payment process on LuxCSD and/or local market level.
Impact on clients
As a result, additional fees as applied by the local CSD may be charged to LuxCSD3. Such fees will be passed on to the failing clients.
Therefore, clients are strongly encouraged to review their current cash funding process in context of CSDR settlement fails penalties payments. For detailed information about the monthly payment process, clients should refer to the LuxCSD Client Handbook Section 3.8 “CSDR Settlement Discipline Regime” under “Monthly collection/distribution of cash penalties”
Should clients continue failing to comply with their cash funding obligations, LuxCSD is also contemplating introducing charges for its manual efforts to resolve the funding gap. If this is the case, further information will be provided in due course.
Further information
For further information, please contact your 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. Refer to the “Penalties payment date (18th PBD)” as per the CSDR penalties schedule 2026 published on the website.
3. For example, the Danish CSD, Euronext Securities Copenhagen, will be applying a “Penalty Overdue Fee” as of November 2026.