Where the failing or the receiving participant is a CCP, CSDs shall ensure the following:
(a)that CCPs are provided with the calculation of the cash penalties for the failed settlement instructions submitted by those CCPs;
(b)that CCPs collect the cash penalties referred to in point (a) from the clearing members that caused the settlement fails;
(c)that CCPs distributes the cash penalties referred to in point (b) to the clearing members that are affected by the settlement fails;
(d)that CCPs report to the CSD on the penalties that they have collected and distributed, on a monthly basis.
With respect to settlement fails relating to cleared transactions submitted by CCPs for settlement, CSDs shall apply Articles 16, 17 and 18.
CCPs may allocate to their clearing members any remaining net amount of penalties, credit or debit, paid pursuant to Article 16 and distributed pursuant to Article 17(2).
CCPs shall establish an appropriate mechanism in their rules to that effect.