Article 19 Penalty mechanism where the participant is a CCP

Where the failing or the receiving participant is a CCP, CSDs shall ensure the following:

1. (a)

   that CCPs are provided with the calculation of the cash penalties for the failed settlement instructions submitted by those CCPs;

2. (b)

   that CCPs collect the cash penalties referred to in point (a) from the clearing members that caused the settlement fails;

3. (c)

   that CCPs distributes the cash penalties referred to in point (b) to the clearing members that are affected by the settlement fails;

4. (d)

   that CCPs report to the CSD on the penalties that they have collected and distributed, on a monthly basis.