CSDR – SDR: ECSDA changes its penalty calendar


The difficulties encountered following the implementation of the penalties in February 2022 (whether on daily and monthly reporting or on the payment itself) led to the creation of three Task Forces bringing together the various players in the industry.

The one on the ECSDA1 calendar resulted in a change in the date of payment. As of April 2023 (i.e. for the penalties of March 2023), the date will be the 18th Penatlies Business Day2 of the month, thus no longer the 17th.

The other two Task Forces, respectively, dealt with the possible existence of different reference prices between 2 CSDs3 and the rules for filling messages. While the first concluded that there was no solution, the second resulted in changes in the forthcoming Swift release of November 2023 and a reminder of some of the recommendations issued by the Securities Market Practice Group (SMPG).

1ECSDA: European CSDs association
2A PBD is used for the penalties-specific monthly reporting, appeals, and payment processing by a CSD. According to the ECSDA settlement fails penalties framework, “a PBD is any day of the year except for 1 January and 25 December and Saturdays, Sundays”
3CSD: Central Securities Depositary