Penalties and Administrative costs

Penalties

In accordance with the Delegated Regulation (EU) 2018/1229 of the European Parliament and of the Council on regulatory technical standards concerning settlement discipline ("SDR"), Central Securities Depository (“CSD”) will be responsible for calculating the penalties to be applied to defaulting entities, with the CCP being responsible for the collection and distribution to its Members of the informed penalties.

The Settlement System shall inform BME Clearing and the Participant Entities on a daily basis of the penalties calculated for the transactions to which they are counterparties.

BME Clearing shall inform their members of the monthly net amount of penalties to be collected or distributed and shall make such debits and credits in the corresponding multilateral account.

Administrative Costs

Administrative costs for the failing seller

A penalty of €50 per day is applied to the failed seller for each failed instruction once their ISD has arrived.

Administrative costs for buy – in and / or cash settlement

It applies to the failed seller a penalty of 10 bps plus a fixed administrative cost of 1,000 euros for each Failed Settlement Instruction to which Buy-in / Cash Settlement process is executed.