ANNEX
Penalty rates applicable to settlement fails
Type of fail | Rate |
Settlement fail due to a lack of shares that have a liquid market within the meaning of point (b) of Article 2(1)(17) of Regulation (EU) No 600/2014, excluding shares referred to in point 3 | 1,0 basis point |
Settlement fail due to a lack of shares that do not have a liquid market within the meaning of point (b) of Article 2(1)(17) of Regulation (EU) No 600/2014, excluding shares referred to in point 3 | 0,5 basis point |
Settlement fail due to a lack of financial instruments traded on SME growth markets, excluding debt instruments referred to in point 6 | 0,25 basis point |
Settlement fail due to a lack of debt instruments issued or guaranteed by: a sovereign issuer as defined in Article 4(1)(60) of Directive 2014/65/EU; a third country sovereign issuer; a local government authority; a central bank; any multilateral development bank referred to in the second subparagraph of Article 117(1) and in Article 117(2) of Regulation (EU) No 575/2013 of the European Parliament and of the Council (1); the European Financial Stability Facility or the European Stability Mechanism. | 0,10 basis point |
Settlement fail due to a lack of debt instruments other than those referred to in points 4 and 6 | 0,20 basis point |
Settlement fail due to a lack of debt instruments traded on SME growth markets | 0,15 basis point |
Settlement fail due to a lack of all other financial instruments not covered in points 1 to 6 | 0,5 basis point |
Settlement fail due to a lack of cash | Official interest rate for overnight credit charged by the central bank issuing the settlement currency with a floor of 0 |
(1) Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012 (OJ L 176, 27.6.2013, p. 1).