DTCC to Offer CSDR Penalty Calculation Service for Failed Trades

Exception Manager, the Depository Trust & Clearing Corporation (DTCC) platform to publish, manage and communicate trade exceptions, will now offer an optional Central Securities Depositories Regulation (CSDR) service to calculate predicted fail penalties. The calculation will prioritize exceptions by size of predicted penalty. A new linkage between Exception Manager and Central Trade Manager (CTM), DTCC’s central matching service for cross-border and domestic transactions, will also provide clients with direct access to golden source trade information to help prevent settlement fails. The CSDR Settlement Discipline Regime (SDR), expected to take effect in February 2022, introduces measures to mitigate settlement delays and requires firms to maintain high settlement rates. For eligible trades that do fail, the SDR is likely to impose daily penalties or charges.