Article 19 of Delegated Regulation (EU) 2018/1229 is replaced by the following:
‘Article 19
Penalty mechanism for settlement fails relating to cleared transactions submitted by CCPs for settlement
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.’