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🔗 Back to Summary. 🇫🇷 French Version: 2018R1229_FR.32. Back to Summary of LVL1. Open the PDF. Direct link to EUR-LEX.
Article 31 – Buy-in procedure and notifications ⬅️ | ➡️ Article 33 – Payment of the cash compensation
Références LVL1 <=> LVL2
Level 1 reference(s): 2014R0909_EN.7 > 7
Article 32 - Calculation of the cash compensation
1.
The cash compensation to be paid pursuant to 2014 shall be calculated in either of the following ways:
(a)
for settlement instructions against payment, the difference between the market value of the relevant financial instruments on the business day before the payment of the cash compensation and the settlement amount included in the failed settlement instruction where that settlement amount is lower than that market value;
(b)
for settlement instructions free of payment, the difference between the market value of the relevant financial instruments on the business day before the payment of the cash compensation and the market value of those financial instruments on the day of their trade, where the market value of those financial instruments on the day of their trade is lower than on the business day before the payment of the cash compensation.
2.
Where not already included in the market value of the financial instrument, the cash compensation to be paid pursuant to 2014 shall include a component reflecting exchange rates variation, as well as corporate entitlements and accrued interest.
3.
The market value referred to in paragraph 1 shall be determined as follows:
(a)
for financial instruments referred to in 2014 of the European Parliament and of the Council admitted to trading on a trading venue within the Union, the value determined on the basis of the closing price of the most relevant market in terms of liquidity referred to in Article 4(6)(b) of that Regulation;
(b)
for financial instruments admitted to trading on a trading venue within the Union other than those referred to in point (a), the value determined on the basis of the closing price of the trading venue within the Union with the highest turnover;
(c)
for financial instruments other than those referred to in points (a), and (b), the value determined on the basis of a price calculated using a pre-determined methodology approved by the competent authority of the CSD that refers to criteria related to market data, including market prices available across trading venues or investment firms.
4.
The market value referred to in paragraph 1 and the component reflecting exchange rates variation, corporate entitlements and accrued interest, referred to in paragraph 2, shall be disclosed to clearing members, trading venue members and trading parties in a detailed breakdown.