The daily penalty will be applied for each day a position is failed. This penalty will be a percentage applied daily on the market value of the fail.
The cash will be calculated with the closing price (included the accrued interest) of the security multiplied by its notional amount, during the number of days between the ISD and the effective settlement date of the fail.
If the failed instructions are settled in the following days because the failed seller delivers, IBERCLEAR will inform BME CLEARING and penalties will be interrupted. In case of partial settlement, BME CLEARING will continue charging penalties for the pending remainder of the instruction.
The applicable percentage of the penalty plus the administrative cost of managing the failure that will be a daily fixed amount in euros, it is published through the Circular called Administrative costs and Penalties of Fixed Income Segment available in Resources section of this webpage.
It applies to the seller with securities delivery obligations, when there is a Failed Settlement due to insufficient securities, for each day the Seller Position is failed.
Daily penalty is established in 0.10 bps and, an administrative cost is €20 for each Settlement Instruction.
It applies to the buyer with cash delivery obligations, when there is a Failed Settlement due to lack of cash, for each day the Buyer Position is failed.
Daily penalty established is Eonia+ 200 bps and, an administrative cost is €20 for each Settlement Instruction.
It applies to the failed seller a penalty of 1 bps plus a fixed administrative cost of 1.000 euros for each Failed Settlement Instruction to which Buy-in process is executed (without taking into account number of attempts or buy-ins), or Cash Settlement (in case Buy-in is not viable).