Commission Delegated Regulation (EU) 2023/1626 of 19 April 2023 on amending the regulatory technical standards laid down in Delegated Regulation (EU) 2018/1229 as regards the penalty mechanism for settlement fails relating to cleared transactions submitted by CCPs for settlement (Text with EEA relevance)

New Commission Delegated Regulation (EU) 2023/1626 as regards the collection of cash penalties by central securities depositories for „settlement fails relating to cleared transactions submitted by CCPs for settlement“ was published in the Official Journal (OJ) of the EU.
The Delegated Regulation modifies Article 19 of Commission Delegated Regulation (EU) 2018/1229, the so-called „RTS on the Settlement Discipline“, to remove the explicit cash penalty collection and distribution process that applies to settlement fails on cleared transactions only and align this process with the collection and distribution process already outlined in Article 16 through 18 of the RTS for the collection and distribution of other penalties. That way, securities depositories (CSDs) will be solely responsible for collecting and distributing such penalties and the intermediary function of central counterparties (CCPs) in this process is eliminated.
Article 19 is thereby simply modified by providing reference to these Articles 16 through 18 and includes a new provision to enable and mandate CCPs to transfer remaining penalty balances to the CSD.