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CSDR - system of cash penalties for late settlement

About the service
As part of the efforts to align with the requirements of Regulation (EU) No 909/2014 of the European Parliament and of the Council of 23 July 2014 on improving securities settlement in the European Union and on central securities depositories (CSDR) and the technical standards concerning settlement discipline published on 13 September 2018, KDPW is modifying the processing of cash penalties for late settlement as of 1 February 2022.
Description of the requirements in the cash penalty system
Information about the modifications to the settlement discipline system, including prior communications about the modifications and memos from working meetings

Regulations and market practice
The processing of cash penalties for late settlement is governed by Section 6, Chapter 6 “Settlement discipline” of the KDPW Rules and Part Two, Section 12 “Cash penalties for failure to perform timely settlement of transactions for the reasons referred to in § 136a subpara. 1 of the KDPW Rules” of the Detailed Rules of Operation of KDPW.
KDPW Rules
Detailed Rules of Operation of KDPW
ECSDA document containing source information relevant to the implemented systemic solutions:
link to the ECSDA website

Complaint form

According to § 136d of the KDPW Rules, a procedure has been established for the lodging of complaints regarding calculated cash penalties. A dedicated template has been defined for the purpose of such complaints:
U43 - Complaint concerning a cash penalty for late settlement
Complaint forms should be lodged with KDPW according to the standard procedure followed in communications; in particular, complaint forms may be lodged in electronic format signed with qualified signatures.
Complaint forms should be lodged as follows:
  • traditional mail – to the KDPW Secretariat;
  • electronic documents – by email at: with a copy to the Settlement Section

Cash penalty mechanism fees are defined in point 8.5 of the Table of Fees under Fees charged to KDPW direct participants.
Cash penalty mechanism fees charged to direct participants – excerpt from the Table of Fees with a simplified description

IT tools
KDPW uses the message semt.044.001.01 to transmit daily and monthly reports of calculated cash penalties under CSDR settlement discipline.
Message name Description Schema Example
semt.044.001.01 Securities Transaction Penalties Report    

The KDPW message schema is also available on MyStandards!content.
Access to the platform is free of charge and requires no SWIFT licence.
However, users must register on the platform and request approval to join the Community, which will be granted automatically.
Last modified:15-07-2022 Go up