Regulation (EU) No 909/2014 provides for various measures to address settlement fails, including cash penalties imposed on failing participants. The calculation of those cash penalties is determined by parameters specified in Commission Delegated Regulation (EU) 2017/389. The Commission is expected to keep track of market developments, the volume of settlement fails and the readiness of the industry to comply with the T+1 settlement cycle requirement, and to consider, accordingly, whether there is a significant risk that the move from a T+2 to a T+1 settlement cycle requirement would lead to a material increase in settlement fails. Where such a risk is identified, the Commission is able, where necessary, to consider whether to adjust Delegated Regulation (EU) 2017/389 accordingly, or to take any other appropriate measure within the scope of the empowerments laid down in Regulation (EU) No 909/2014, in order to mitigate both financial and non-financial adverse consequences. Any adjustments should be temporary, proportionate to the objective and designed to avoid imposing excessive costs on the industry.
Text as published in the Official Journal, reproduced verbatim (including any typographical quirks of the source). For the authentic version, see EUR-Lex.
