Article 26 Reimbursement procedures of intraday credit
United Kingdom
A CSD-banking service provider shall have effective reimbursement procedures of intraday credit, which comply with the requirements in paragraph 2.
The reimbursement procedures of intraday credit shall provide for sanctioning rates acting as an effective deterrent to discourage overnight credit exposures, and, in particular, that they shall meet both of the following conditions:
they are higher than the interbank money-market overnight collateralised market rate and the marginal lending rate of a central bank of issue of the currency of the credit exposure;
they take into consideration the funding costs of the currency of the credit exposure and the creditworthiness of the participant that has an overnight credit exposure.