FIA responds to ESMA consultation on cash penalty process for cleared transactions

9 September 2022

On 9 September, FIA submitted its response to the ESMA consultation paper on the proposed changes to the cash penalty process for cleared transactions under Article 19 of the Central Securities Depositories Regulation RTS on Settlement Discipline.

FIA supports ESMA’s proposals to remove the process of collection and distribution of penalties by central counterparties for cleared transactions. This will allow for the centralisation of the collection and distribution process of cash penalties for both cleared and uncleared transactions upon a single entity (central securities depository), allowing for a more straightforward and consistent approach, centred on the settlement step regardless of trading flow. Removing CCPs from the cash penalty process will reduce risk and improve the operating environment.

FIA recommends that the amendment is introduced without additional delays, as the burden imposed by a bifurcated regime is ultimately detrimental to the smooth running of the CSDR cash penalty regime and the EEA’s capital markets.


  • FIA
  • Settlement Discipline
  • Advocacy
  • Europe
  • Advocacy
  • Regulatory Responses