(2)Article 19 of Commission Delegated Regulation (EU) 2018/1229 2 as currently applicable provides for a specific mechanism on the collection and distribution by CCPs of cash penalties (‘penalty mechanism’) to ensure that, in respect of settlement fails relating to cleared transactions, where CCPs interpose themselves between counterparties, cash penalties are not applied to CCPs.
Recital 2
- 2 Commission Delegated Regulation (EU) 2018/1229 of 25 May 2018 supplementing Regulation (EU) No 909/2014 of the European Parliament and of the Council with regard to regulatory technical standards on settlement discipline ( OJ L 230, 13.9.2018, p. 1 ). ↩