OeKB CSD, the Austrian CSD, confirmed today that they are changing their processing cycle for settlement fail penalties. Following an agreement within the European Central Securities Depositories Association (ECSDA), the CSD participants should have more time for checking and coverage of the monthly settlement fails penalties. The change will be applicable beginning with the penalties due as of April 2023.
Please see below a comparison of the current and the future schedule:
Penalties business days (PBD) can differ from the actual ‘business days’ of a CSD’s settlement system calendar or payment system calendar. The concept of PBD is used for the penalties-specific monthly reporting, appeals and payment processing by a CSD. According to the ECSDA settlement fails penalties framework ''a PBD is any day of the year except for 1 January and 25 December and Saturdays, Sundays''.
Impact on investors: In line with the new approach of the CSD, UniCredit Bank Austria will also postpone the date for the debit of the monthly penalties by one day from April 2023 onwards.
Austrian CSD Changes Processing Cycle for Monthly Settlement Penalties