Questions and Answers (Q&As) regarding the implementation of the Central Securities Depository Regulation (CSDR):
The updated Q&As provide answers to questions regarding practical issues on the implementation of the new CSDR regime. The latest batch of CSDR Q&As clarify two aspects of the settlement discipline regime in relation to cash penalties:
- Calculation of cash penalties: the first Q&A confirms that cash penalties amounts should be calculated per settlement currency (and do not need to be converted into euros).
- Cases of non-application of cash penalties: The second Q&A lists situations where cash penalties should not be applied either because an insolvency proceeding has been opened against a failing participant or because settlement cannot be performed for reasons independent from any of the involved participants. This latter category covers: suspensions of ISINs from settlement or from trading, closure of a relevant payment system for settlement and certain technical impossibilities at CSD level.
Q&As on the European Benchmark Regulation (BMR):
The new Q&A provide clarification on provisions of the BMR regarding the scope of application of the Commission Delegated Regulations adopted under the BMR depending on the type of benchmark and in particular:
· Regulated-data benchmarks;
· Interest-rate benchmarks; and
· Commodity benchmarks.