Settlement Discipline Regime is planned to enter into force on 1st of February
2022. As part of preparation for upcoming changes Nasdaq Clearing introduces
Service Description for CSDR Settlement Discipline ("SDR").
The purpose of Service Description is to outline the services, processes and
reporting which Nasdaq Clearing will be providing in relation to the SDR. CSDR
buy-ins are not included as buy-ins are not expected to come into force on 1st
of February 2022. European Parliament and Council have agreed to postpone
implementation of mandatory buy ins under the SDR. Any future updates of the
Service Description will be available on Nasdaq's websiteunder CSDR in Resource
Center.
CSDs will calculate and notify CSD participants about SDR Settlement penalties
for instructions failing to settle on intended settlement date. For CSD
settlement instructions categorized as CCP-cleared instructions, the aggregated
net CSDR Settlement penalty amounts will be debited or credited by Nasdaq
Clearing. Nasdaq Clearing will notify Clearing members and include such amounts
in the cash optimization process starting from 1st of February 2022 on the
payment date of such penalties as stipulated in SDR. In addition to CSDR
Settlement payments, Nasdaq Clearing will apply late settlement administrative
fees in connection with delayed delivery of equities and/or debt securities.
This document does not include information regarding Nasdaq Clearing's own fees
in connection with delayed delivery. Information regarding changes to Nasdaq
Clearing's own fees for delayed delivery will be communicated before 1st of
February 2022.
Clearing Member's House account will be charged for CSDR penalties and any
other fees associated with Clearing Member's delayed settlement. The Clearing
Member is responsible to make required allocations of penalties and fees from
the charged account to its clients or other parties.
Settlement instructions with SME Growth Market as underlying
Exercise and Expiration ("E&E") settlement instructions, with SME Growth Market
("SME") as underlying, should be instructed to CSDs in a standard manner as any
other instrument. In E&E settlement instruction, related to SME instrument, the
place code should not be populated with exchange and MIC of SME. Instead, place
code should be populated in the same way as all other E&E settlement
instructions sent to Nasdaq Clearing.
CSDR settlement penalties dry run
Prior to the regulation entering into force, Nasdaq Clearing offers its
Clearing Members to subscribe to Daily and Monthly CSDR Penalties Excel
reports. The reports will be sent, if any delayed delivery, via e-mail starting
from 10th January of 2022. Daily and Monthly settlement penalties reports will
outline penalties on failing settlement instructions that Clearing Members will
be debited or credited on the 17th business day of the following month.
Penalties reported during the dry run period, from 10th of January to 28th of
January 2022, will be actual production data without cash collection and
redistribution. Nasdaq Clearing is encouraging its Clearing Members to
participate in the dry run.
Clearing Members that would like to subscribe to CSDR Penalties report should
use the subscription form "Sign up for CSDR Penalties report" supplied by
Nasdaq Clearing via Nasdaq Clearing's Member Portal:
Sign up for CSDR Penalties reports
The subscription will include both, the Daily and Monthly aggregated reports.
Please submit subscription form to Nasdaq Clearing prior to 28th of January
2022.
Contact information provided in subscription form will be applicable for
communication of Nasdaq Clearing's late settlement administrative fee in
connection with delayed delivery of equities and/or debt securities.
Nasdaq Clearing Service Description Settlement Discipline and Report examples
can be found below.
For further information, please contact Nasdaq Clearing, telephone + 46 8 405
6880 or clearing@nasdaq.com.
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https://cns.omxgroup.com/cds/DisclosureAttachmentServlet?messageAttachmentId=1036133© 2022 GlobeNewswire
