2001O0401 — EN — 07.06.2001 — 000.001 — 1
This document is meant purely as a documentation tool and the institutions do not assume any liability for its contents
►B GUIDELINEOFTHEEUROPEANCENTRALBANK
of26April2001
on a Trans-European Automated Real-time Gross Settlement Express Transfer system
(►C1 TARGET ◄)
(ECB/2001/3)
(2001/401/EC)
(OJ L 140, 24.5.2001, p. 72)
Corrected by:
►C1Corrigendum, OJ L 167, 22.6.2001, p. 34 (ECB/2001/401)
▼B
GUIDELINEOFTHEEUROPEANCENTRALBANK
of26April2001
on a Trans-European Automated Real-time Gross Settlement
ExpressTransfersystem( ►C1 TARGET ◄)
(ECB/2001/3)
(2001/401/EC)
THE GOVERNING COUNCIL OF THE EUROPEAN CENTRAL BANK,
Having regard to the Treaty establishing the European Community
(hereinafter referred to as the ‘Treaty’) and in particular to the firstand fourth indents of Article 105(2) thereof and to Articles 3.1, 12.1,14.3, 17, 18 and 22 of the Statute of the European System of CentralBanks and of the European Central Bank (hereinafter referred to as the
‘Statute’),
Whereas:
(1)The first indent of Article 105(2) of the Treaty and the first
indent of Article 3.1 of the Statute require the European System
of Central Banks (ESCB) to define and implement the monetary
policy of the Community.
(2)The fourth indent of Article 105(2) of the Treaty and the fourthindent of Article 3.1 of the Statute empower the EuropeanCentral Bank (ECB) and the national central banks (NCBs) topromote the smooth operation of payment systems.
(3)Article 22 of the Statute entrusts the ECB and the NCBs with the
provision of facilities to ensure efficient and sound clearing and
payment systems within the Community and with other coun-tries.
(4)The achievement of a single monetary policy entails the need forpayment arrangements through which the monetary policy opera-tions between NCBs and credit institutions can be effected in a
timely and secure manner, and which will foster the singleness
of the money market within the euro area.
(5)Such objectives warrant a payment arrangement that operateswith a high level of security, within very short processing timesand at low cost.
(6)►C1TARGET ◄is governed by a legal framework, which
has applied from the starting date of Stage III of economic and
monetary union (EMU). This Guideline replaces Guideline ECB/
2000/9 of 3 October 2000 on a 'Trans-European AutomatedReal-time Gross Settlement Express Transfer system(►
C1TARGET ◄).
(7)This Guideline is published following a policy in favour of
transparency by way of official publication of the ECB's legalinstruments; certain additional existing ESCB arrangements
concerning security, financial and other operational or internal
ESCB aspects are not included in this Guideline.
(8)In accordance with Articles 12.1 and 14.3 of the Statute, ECBguidelines form an integral part of Community law,
HAS ADOPTED THIS GUIDELINE:
Article 1
Definitions
1. For the purposes of this Guideline:
— ‘national RTGS systems’ shall mean those Real-time Gross Settle-
ment systems which are component parts of ►C1TARGET ◄as
identified in Annex I of this Guideline,2001O0401 — EN — 07.06.2001 — 000.001 — 2
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— ‘ECB payment mechanism’ shall mean the payment arrangements
organised within the ECB and connected to ►C1TARGET ◄
for the purpose of effecting (i) payments between accounts held at
the ECB; and (ii) payments through ►C1TARGET ◄between
accounts held at the ECB and at the NCBs,
— ‘interlinking’ shall mean the technical infrastructures, design
features and procedures which are put in place within, or constituteadaptations of, each national RTGS system and the ECB payment
mechanism for the purpose of processing cross-border payments
within►
C1TARGET ◄,
— ‘participants’ shall mean the entities which have direct access to a
national RTGS system and have an RTGS account with the NCBconcerned (or, in the case of the ECB payment mechanism, withthe ECB) and shall include such NCB or the ECB, whether in its
capacity as settlement agent or otherwise,
— ‘participating Member States’ shall mean all Member States which
have adopted the single currency in accordance with the Treaty,
— ‘NCBs’ shall mean the national central banks of the Member States
which have adopted the single currency in accordance with theTreaty,
— ‘Eurosystem’ shall mean the ECB and the national central banks of
the Member States which have adopted the single currency inaccordance with the Treaty,
— ‘network service provider’ shall mean the undertaking appointed by
the ECB to provide computerised network connections for inter-
linking,
— ‘inter-NCB accounts’ shall mean the accounts that each NCB and
the ECB shall open for each other on their respective books forthe operation of cross-border ►
C1TARGET ◄payments; each
such inter-NCB account is held for the benefit of the ECB or theNCB in whose name the account is opened,
— ‘domestic payments’ shall mean payments effected or to be effected
within one national RTGS system or within the ECB paymentmechanism,
— ‘cross-border payments’ shall mean payments effected or to be
effected between two national RTGS systems or between a nationalRTGS system and the ECB payment mechanism,
— ‘RTGS rules’ shall mean the regulations and/or contractual provi-
sions, which are applied to a national RTGS system,
— ‘RTGS account’ shall mean an account (or, to the extent permitted
in accordance with the relevant RTGS rules in question, any groupof consolidated accounts, provided that all such account holders are
jointly and severally liable vis-à-vis the RTGS system in case of
default) opened in the name of a participant on the books of anNCB or the ECB on which domestic payments and/or cross-borderpayments are settled,
— ‘payment order’ shall mean an instruction by a participant in accor-
dance with the applicable RTGS rules to place at the disposal of a
receiving participant, including an NCB or the ECB, an amount of
money by means of a book entry on an RTGS account,
— ‘sending participant’ shall mean the participant which has initiated
a payment by giving a payment order,
— ‘sending NCB/ECB’ shall mean the ECB or the NCB at which the
sending participant maintains its RTGS account,
— ‘receiving participant’ shall mean the participant designated by the
sending participant as the participant to whose RTGS account theamount specified in the relevant payment order shall be credited,
— ‘receiving NCB/ECB’ shall mean the ECB or the NCB at which the
receiving participant maintains its RTGS account,
— ‘EEA’ shall mean the European Economic Area as defined in the
Agreement on the European Economic Area concluded on 2 May1992 between the European Community and its Member Statesand the Member States of the European Free Trade Association, asamended by the Protocol adjusting the Agreement on the EuropeanEconomic Area of 17 March 1993,2001O0401 — EN — 07.06.2001 — 000.001 — 3
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— ‘remote participant’ shall mean an institution established in an EEA
country which participates directly in a national RTGS system of an(other) EU Member State (‘host Member State’) and, for that
purpose, has an RTGS account in euro in its own name with the
NCB of the host Member State, without necessarily having estab-lished a branch in the host Member State,
— ‘indirect participant’ shall mean an institution without its own
RTGS account which is nevertheless recognised by a nationalRTGS system and subject to its RTGS rules and which can bedirectly addressed in ►
C1TARGET ◄; all transactions of an
indirect participant are settled on the account of a participant (as
defined above in the fourth indent of this Article 1) which hasaccepted to represent the indirect participant,
— ‘intraday credit’ shall mean credit extended and reimbursed within
a period of less than one business day,
— ‘standing facilities’ shall mean the marginal lending facility and the
deposit facility organised by the Eurosystem,
— ‘marginal lending rate’ shall mean the interest rate applicable from
time to time for the Eurosystem marginal lending facility,
— ‘deposit facility rate’ shall mean the interest rate applicable from
time to time for the Eurosystem deposit facility,
— ‘main refinancing operations rate’ shall mean the marginal interest
rate applicable from time to time for the Eurosystem's most recentmain refinancing operation, whereby marginal interest rate shallmean the interest rate at which the total tender allotment isexhausted,
— ‘CCBM’ shall mean the correspondent central banking model for
the cross-border use of collateral as established by the ESCB,
— ‘blocking-of-funds procedure’ shall mean the procedure according
to which funds on deposit or available credit are earmarked andmade unavailable for any transaction or purpose other than the
execution of the payment order concerned, in order to ensure that
the earmarked funds or available credit will be used for the execu-tion of such payment order; the earmarking of funds or availablecredit is referred to in this Guideline as ‘blocking’,
— ‘finality’ or ‘final’ shall mean that the settlement of a payment
order cannot be revoked, reversed or made void by the sendingNCB/ECB, by the sending participant or by any third party, or
even in the event of insolvency proceedings against a participant,
except in cases of imperfections in the underlying transaction(s) orpayment order(s) arising from criminal offences or fraudulent acts(whereby fraudulent acts shall also include preferences and transac-tions at under-value during suspect periods in the case ofinsolvency) provided that such has been decided on a case-by-case
basis by a court of competent jurisdiction or another competent
dispute resolution body, or arising from error,
— ‘malfunctioning of a national RTGS system’ or ‘malfunctioning of
►
C1TARGET ◄’ or ‘malfunctioning’ shall mean technical diffi-
culties, defects or failures in the technical infrastructure and/or thecomputer systems of any national RTGS system or the ECBpayment mechanism or the computerised network connections forinterlinking, or any other event related to any national RTGS
system or the ECB payment mechanism or interlinking, that makes
it impossible to execute and complete the same day processing ofpayment orders within ►
C1TARGET ◄; the definition shall
also cover cases where a malfunctioning occurs simultaneously inmore than one national RTGS system (due to, for instance, a break-
down related to the network service provider),
—‘►
C1TARGET ◄reimbursement scheme’ or the ‘reimbursement
scheme’ or the ‘scheme’ shall mean the scheme for reimbursement
in cases of malfunctioning of ►C1TARGET ◄referred to in
Article 3(h) of this Guideline.
2. The Annexes to this Guideline may be amended from time to
time by the Governing Council of the ECB. Additional documentscontaining, inter alia , technical provisions and specifications for
►
C1TARGET ◄may be adopted by the Governing Council of the2001O0401 — EN — 07.06.2001 — 000.001 — 4
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ECB, whereby such amendments and additional documents shall enter
into force as an integral part of this Guideline on the date specified bythe Governing Council of the ECB, after communication to the NCBs.
Article 2
Descriptionof ►
C1 TARGET ◄
1. The Trans-European Automated Real-time Gross Settlement
Express Transfer system is a Real-time Gross Settlement system for
the euro. ►C1TARGET ◄is composed of the national RTGS
systems, the ECB payment mechanism and interlinking, and has beenestablished by the Guideline ECB/1998/NP13 of 16 November 1998on►
C1TARGET ◄, as amended, which was repealed and replaced
by Guideline ECB/2000/NP9. ►C1TARGET ◄shall henceforth be
governed by this Guideline.
2. The RTGS systems of the EU Member States which were existing
members of the EU at the start of Stage III of EMU, but which have
not adopted the single currency, are allowed connection to►
C1TARGET ◄, in so far as such RTGS systems comply with the
minimum common features set out in Article 3 of this Guideline andare able to process the euro as a foreign currency alongside theirrespective national currency. Any such connection to
►
C1TARGET ◄is subject to an agreement whereby the national
central banks concerned agree to adhere to the rules and proceduresfor►
C1TARGET ◄referred to in this Guideline (with specifica-
tions and modifications, where appropriate, as referred to in such anagreement).
Article 3
MinimumcommonfeaturesofnationalRTGSsystems
Each NCB shall ensure that its respective national RTGS system
complies with the features set out below.
(a) Access criteria
1. Only supervised credit institutions, as defined in Article 1(1) of
Directive 2000/12/EC of the European Parliament and of theCouncil of 20 March 2000 relating to the taking upand p ursuitof the business of credit institutions(
1), which are established in
the EEA shall be admitted as participants in a national RTGSsystem. As an exception, and without prejudice to Article 7(1)
of this Guideline, the following entities may also be admitted
as participants in a national RTGS system upon approval bythe relevant NCB:
(i) treasury departments of central or regional governments of
Member States active in the money markets;
(ii) public sector bodies of Member States authorised to hold
accounts for customers; for the purposes of this Guideline,
‘public sector’ shall have the meaning of Article 3 of
Council Regulation (EC) No 3603/93 of 13 December1993 specifying definitions for the application of the prohi-bitions referred to in Articles 104 and 104(b)(1) of theTreaty(
2);
(iii) investment firms as defined in Article 1(2) of Council
Directive 93/22/EEC of 10 May 1993 on investmentservices in the securities field(
3), established in the EEA
and authorised and supervised by a recognised competent
authority designated as such under the terms of the above-mentioned Council Directive (with the exclusion of theinstitutions defined under Article 2(2) of the abovemen-tioned Directive), provided the investment firm in questionis entitled to carry out the activities referred to under items2001O0401 — EN — 07.06.2001 — 000.001 — 5
(1) OJ L 126, 26.5.2000, p. 1.
(2) OJ L 332, 31.12.1993, p. 1.
(3) OJ L 141, 11.6.1993, p. 27.
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1(b), 2 or 4 of Section A of the Annex to Directive 93/22/
EEC;
(iv) organisations providing clearing or settlement services
subject to oversight by a competent authority.
2. The criteria for access to a national RTGS system and the proce-
dure for the assessment thereof shall be set out in the RTGS
rules concerned and be made available to interested parties. Inaddition to the criteria mentioned in Article 3(a)(1), thesenational criteria may include, inter alia :
— adequate financial strength,
— expected minimum number of transactions,
— the payment of an entry fee,
— legal, technical and operational aspects.
The RTGS rules shall also require that legal opinions, based on
the Eurosystem's harmonised terms of reference for legal
opinions, shall be obtained in respect of applicants for reviewby the relevant NCB as determined and specified by theGoverning Council of the ECB. The terms of reference for legalopinions shall be made available by the respective NCB to inter-
ested parties.
3. A participant in a national RTGS system pursuant to this Article
3(a)(1) and (2) shall have access to the cross-border paymentfacilities of ►
C1TARGET ◄.
4. The RTGS rules shall contain the grounds and procedures for
removing a participant from the national RTGS systemconcerned. The grounds for removing a participant from a
national RTGS system (by way of suspension or expulsion)
should cover any event which entails systemic risk or couldotherwise cause serious operational problems, including:
(i) where a participant enters into insolvency proceedings, or
where such proceedings are impending;
(ii) where a participant is in breach of the RTGS rules in ques-
tion; or
(iii) where one or more access criteria for participation in the
relevant national RTGS system are no longer fulfilled.
(b) Currency unit
All cross-border payments to be processed through interlinking
shall be in the euro unit. NCBs shall ensure that payment ordersdenominated in their respective national currency units of the euroto be effected through interlinking are converted into and trans-
mitted in euro units.
(c) Pricing rules
1. The pricing policy of the ►
C1TARGET ◄system shall be
determined by the Governing Council of the ECB with referenceto the principles of cost recovery, transparency and non-discri-mination.
2. Domestic payments in euro effected through the national RTGS
system are subject to the pricing rules of the national RTGS
system concerned, which, in turn, shall respect the policy on
pricing set out in Annex II.
3. Cross-border payments effected within ►
C1TARGET ◄shall
be subject to a common price established by the GoverningCouncil of the ECB and specified in Annex III.
4. Prices shall be made available to interested parties.
(d) Time of operation
1. Operating days
TARGET as a whole shall be closed on Saturdays, Sundays,
New Year's Day, Good Friday (according to the calendar applic-able at the seat of the ECB), Easter Monday (according to the2001O0401 — EN — 07.06.2001 — 000.001 — 6
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calendar applicable at the seat of the ECB), 1 May (Labour
Day), Christmas Day, 26 December and in the year 2001 alsoon 31 December.
However, on 26 December 2001 the following shall apply:
(i) interlinking shall be closed;
(ii) the ECB payment mechanism shall be closed;
(iii) no settlement may be provided for large-value net settle-
ment systems in euro;
(iv) the national RTGS systems shall be closed in all Member
States subject to Article 3(d)(1)(v) below;
(v) in participating Member States in which 26 December
2001 is not a public holiday, the NCB shall endeavour toclose its national RTGS system; if this is deemed impos-sible by the NCB in question, it shall submit a proposal to
the Executive Board and the Governing Council of the
ECB outlining how it can limit domestic payments activ-ities as much as possible; in assessing such a proposal, theExecutive Board and the Governing Council shall take therelevant national legislation into account;
(vi) the standing facilities shall be available at the NCBs that
remain open for such limited activities; and
(vii) the CCBM shall be closed.
2. Hours of operation
The hours of operation of national RTGS systems shall comply
with the specifications set out in Annex IV.
(e) Payment rules
1. All payments directly resulting from or made in connection with
(i) monetary policy operations; (ii) the settlement of the euro leg
of foreign exchange operations involving the Eurosystem; and
(iii) the settlement of cross-border large-value netting systemshandling euro transfers shall be effected through►
C1TARGET ◄. Other payments may also be effected
through►C1TARGET ◄.
2. A national RTGS system and the ECB payment mechanism
shall not process a payment order unless sufficient funds are
available on the account of the sending participant with thesending NCB/ECB, either through immediately available fundsalready credited to that account, through the intraday mobilisa-tion of reserves maintained to fulfil reserve requirements or
through intraday credit granted by such NCB/ECB, as the case
may be, to that participant in accordance with Article 3(f).
3. RTGS rules and the rules for the ECB payment mechanism shall
specify the point in time at which payment orders become irre-vocable, which must not be later than the point in time at whichthe RTGS account of the sending participant held at the sending
NCB/ECB is debited with the amount concerned. Where
national RTGS systems apply a blocking-of funds procedurebefore debiting the RTGS account, such irrevocability shall beprovided from that earlier point in time at which blocking takesplace.
(f) Intraday credit
1. Subject to the provisions of this Guideline, each NCB shall
provide intraday credit to the supervised credit institutions
referred to in Article 3(a) participating in the national RTGS
system of such NCB provided that such credit institution is aneligible counterparty for Eurosystem monetary policy operationsand has access to the marginal lending facility. Provided that itis a clear condition that intraday credit shall remain limited to2001O0401 — EN — 07.06.2001 — 000.001 — 7
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the day in question and that no extension to overnight credit
shall be possible, intraday credit may also be granted to:
(i) treasury departments referred to in Article 3(a)(1)(i);
(ii) public sector bodies referred to in Article 3(a)(1)(ii);
(iii) investment firms referred to in Article 3(a)(1)(iii), on condi-
tion that such investment firm submits satisfactory writtenevidence that:
(a) either it has concluded a formal agreement with a Euro-
system monetary policy counterparty to cover any
residual debit position at the end of the day in question;
or
(b) access to intraday credit is limited to investment firms
which hold an account with a central securities deposi-
tory, and the investment firm in question is subject to a
liquidity deadline or the amount of intraday credit issubject to a ceiling.
Should an investment firm for any reason be unable to
reimburse the intraday credit on time, it shall be subject topenalties set in accordance with the following. If such aninvestment firm has a debit balance on its RTGS accountas at the close of business of ►
C1TARGET ◄for the
first time within any 12-month period, then the following
shall apply. The relevant NCB shall promptly impose a
penalty on that participant calculated at a rate five percen-tage points above the marginal lending rate on the amountof such debit balance (e.g. should the marginal lending ratebe 4 %, the penalty would be 9 %). Should such an invest-
ment firm repeatedly be in such a debit position, then the
penalty interest rate applied to that participant would beincreased by a further 2,5 percentage points each timesuch a debit position were to occur within the 12-monthperiod referred to above;
(iv) supervised credit institutions referred to in Article 3(a)(1),
which are not eligible counterparties for Eurosystem mone-tary policy operations and/or do not have access to themarginal lending facility. All provisions of the penalty
regime set out in Article 3(f)(1)(iii) for investment firms
shall apply identically to such credit institutions when, forany reason, they are unable to reimburse the intraday crediton time;
(v) organisations providing clearing or settlement services (and
subject to oversight by a competent authority) on conditionthat the arrangements for granting intraday credit to suchorganisations are submitted in advance to the Governing
Council of the ECB for approval.
2. Each NCB shall provide intraday credit by means of collatera-
lised intraday overdrafts at the NCB and/or intraday repurchasetransactions with NCBs in compliance with the criteria laiddown below and with the further minimum common featuresthat the Governing Council of the ECB may specify from timeto time.
3. Intraday credit shall be based on adequate collateral. Eligible
collateral shall be the same assets and instruments and be
subject to the same valuation and risk control rules as thoseprescribed for eligible collateral for monetary policy operations.Except for treasury departments and public sector bodiesreferred to respectively in Article 3(a)(1)(i) and (ii), an NCBshall not accept as underlying assets debt instruments issued or
guaranteed by the participant, or by any other entity with which
the counterparty has close links, ►
C1as defined in Article
1(26) of Directive 2000/12/EC and as applied for monetarypolicy operations. ◄
Each of the national central banks of the EU Member States
whose RTGS system is connected to ►
C1TARGET ◄
pursuant to Article 2(2) is allowed to establish and maintain a2001O0401 — EN — 07.06.2001 — 000.001 — 8
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list of eligible assets which can be used by institutions partici-
pating in their relevant national RTGS system connected to►
C1TARGET ◄to collateralise euro credits granted by
such national central banks, provided that the assets on such
list meet the same quality standards and are subject to the samevaluation and risk control rules as those prescribed for eligiblecollateral for monetary policy operations. The national centralbank in question shall submit such list of eligible assets for prior
approval by the ECB.
4. The Governing Council of the ECB may exempt treasury depart-
ments, referred to in Article 3(a)(1)(i), from the requirement of
collateralisation in relation to the provision of intraday credit set
out in Article 3(f)(3) upon a proposal from the relevant NCB.
5. Intraday credit provided in accordance with Articles 3(f) and (g)
shall be free of interest.
6. Intraday credit shall not be granted to any remote participant.
7. The RTGS rules shall contain the grounds on the basis of which
the relevant NCB may decide that the access of a participant tointraday credit may be suspended or terminated. Such a decisionin respect of an eligible counterparty for Eurosystem monetary
policy operations shall be approved by the ECB before it
becomes effective.
The grounds for such suspension or termination shall cover any
event which entails systemic risk or which could otherwise
endanger the smooth operation of payment systems, including:
(i) where a participant enters into insolvency proceedings;
(ii) where a participant is in breach of the RTGS rules in ques-
tion;
(iii) where the entitlement of a participant to participate in the
national RTGS system is suspended or terminated; and
(iv) where, in case of a participant which is an eligible counter-
party for Eurosystem monetary policy operations, the
participant ceases to be eligible or is excluded or suspended
from access to any or all such operations.
(g) Intraday credit against assets outside the euro area
The ECB may authorise NCBs to grant intraday credit against
assets outside the euro area contained in the list approved by theECB and referred to in Article 3(f)(3), provided that the assetsare: (i) located in EEA countries; (ii) issued by entities established
in EEA countries; and (iii) denominated in EEA currencies or other
widely traded currencies. The NCBs having received the authorisa-tion to accept these assets and the lists of such assets are set out inAnnex V.
The authorisation by the ECB is subject to the following condi-
tions:
(i) preservation of operational efficiency and the exercise of
appropriate control over the specific legal risks relating tosuch assets and over the mechanisms to prevent such assetsfrom being used in monetary policy operations;
(ii) these assets shall not be used on a cross-border basis (i.e.
counterparties may use such assets only to receive fundsdirectly from the national central bank which has beenauthorised by the ECB to grant intraday credit against these
assets);
(iii) in addition, these assets shall only be used by participants to
secure intraday credits granted by the relevant NCB and maynot be used to secure overnight credit. In case intraday credit
secured by these assets needs to be extended overnight, the
assets in question need to be substituted with collateral eligiblefor monetary policy operations as prescribed under the rele-vant guidelines of the ECB. If extension of overnight creditoccurs without such assets being simultaneously substitutedwith eligible collateral for monetary policy operations, penal-2001O0401 — EN — 07.06.2001 — 000.001 — 9
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ties set in accordance with the following will be imposed on
such participant. If the participant commits the violationdescribed above for the first time within any 12-month period,
then the relevant NCB shall promptly impose a penalty on that
participant calculated at a rate 2,5 percentage points above themarginal lending rate on the amount of the overnight creditsecured by these assets. Should the participant repeatedly bein such violation, then the penalty interest rate applied to that
participant would be increased by a further 1,25 percentage
points each time such a violation were to occur within the12-month period referred to above. Should an investmentfirm or a credit institution referred to in Article 3(f)(1)(iv)commit the violation described above, only the penalties setout in either Article 3(f)(1)(iii) or Article 3(f)(1)(iv) will apply
to such a participant.
(h)►
C1TARGET ◄reimbursement scheme
1. Establishment of a ►C1TARGET ◄reimbursement scheme
In the event of malfunctioning of ►C1TARGET ◄, and by
way of derogation from Article 8 of this Guideline, the
following rules, constituting the ►C1TARGET ◄reimburse-
ment scheme, shall apply. For the purposes of the scheme andits application, the terms ‘reimburse’, ‘reimbursement’ and‘reimbursement payments’ are used to denote the paymentsmade to participants under the scheme in order to adjust andaddress certain negative effects of malfunctioning as specified
in the following.
The reimbursement scheme is not intended to exclude the possi-
bility for participants to avail themselves of other legal means to
claim compensation in a case of malfunctioning. Participantsshould either (i) accept the arrangements of the scheme, andany receipt of reimbursement payments thereunder, without anyfurther legal action; or (ii) reject the arrangements of the schemeif the participant instead wishes to seek other legal means for
compensation of damages, to the extent such is possible. Any
reimbursement payment under the scheme shall be made oncondition that the receipt of such payment is in full and finalsettlement of all the participant's claims arising from the specificpayment affected by the malfunctioning.
2. Scope of application of the scheme
(a) For cases of malfunctioning which negatively affects both
domestic and cross-border payments, the scheme shall apply
to both categories of affected payments and be the only such►
C1TARGET ◄reimbursement arrangement offered by
the members of the ESCB. Conversely, NCBs may applyalternative regimes for cases of malfunctioning which onlyaffects domestic payments within the malfunctioning
national RTGS system.
(b) The scheme is only available to the sending participants and/
or the receiving participants of a national RTGS system thathave had recourse (subject to Articles 3(h)(5) and 3(h)(6)) tothe standing facilities due to the malfunctioning of
►
C1TARGET ◄. The scheme does not cover indirect
participants, unless such indirect participants have hadrecourse to the standing facilities due to the malfunctioningof►
C1TARGET ◄.
3. Conditions for eligibility under the scheme
(a) As a condition for a sending participant to be eligible to
receive reimbursement under the scheme, it must be able toestablish that it has entered a payment order (i) which was
not processed on the same day, or (ii) which was returned
without successful completion on the same day due to themalfunctioning of ►
C1TARGET ◄, or (iii) which trig-
gered the debiting of the sending participant's account forthe payment order entered into a national RTGS system butwhich was thereafter neither executed nor returned on the2001O0401 — EN — 07.06.2001 — 000.001 — 10
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same day due to the malfunctioning. In the case of a stop-
sending status of a national RTGS system, a sending partici-pant may, alternatively, not have been able to enter a certain
payment order. Such a participant may still lodge a claim
under the scheme provided that the participant can submitsupporting evidence to the NCB of its national RTGSsystem that shows to the satisfaction of the ESCB that ithad the intention to enter the payment order in question but
was unable to do so due to the malfunctioning and the stop-
sending message.
(b) As a condition for a receiving participant to be eligible to
receive reimbursement under the scheme, it must be able toestablish that it was expecting to receive a payment through►
C1TARGET ◄as a result of a payment order entered
into a national RTGS system on the relevant date (or other-
wise as provided for under Article 3(h)(3)(a)) and that it didnot receive such payment on the relevant date due to themalfunctioning of ►
C1TARGET ◄.
4. Rules regarding the calculation of reimbursement under the
scheme
(a) In the event of malfunctioning of ►C1TARGET ◄, the
sending participant may have a temporary excess of liquidity
with the sending NCB, whilst the NCB of the receiving
participant may have to provide the amounts of the failedpayment to that receiving participant. Therefore, the depositfacility may be activated in the first case, and the marginallending facility in the second case. In both these cases, the
rates applied are more favourable to the ESCB than the
market rate (which, for the purposes of the scheme, isconsidered to be the main refinancing operations rate).
(b) The amounts to be reimbursed to the participants under the
scheme shall be determined by applying:
(i) the difference in rate from day to day between the main
refinancing operations rate and the rate applied by the
Eurosystem for amounts lent or deposited under thestanding facilities (the marginal lending rate or thedeposit rate, respectively);
(ii) to the amount representing the effective use of the rele-
vant standing facility by the sending or the receivingparticipant and up to the amount of the payment ordersnot processed as a result of the malfunctioning of►
C1TARGET ◄,
for the period starting at the date of the entering of the
payment order until the date when the payment order was
or could have been successfully completed (the ‘period of
malfunctioning’).
(c) For a sending participant, the scheme shall exclude from
reimbursement any amounts such a participant has used forthe fulfilment of reserve requirements and any amountsrepresenting losses the participant may have incurred in
depositing excess funds in the market.
(d) For a receiving participant, the scheme shall exclude from
compensation any amounts representing losses the partici-pant may have incurred due to borrowing in the market.
(e) The scheme shall not cover any losses incurred as a result of
any underlying contractual or other arrangements that any
participant may have with another participant or any otherthird party.
(f) Reimbursement payments under the scheme to sending or
receiving participants shall be made by the NCB/ECB ofthe malfunctioning national RTGS system.2001O0401 — EN — 07.06.2001 — 000.001 — 11
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5. Additional rules regarding calculation of reimbursement under
the scheme in particular cases
(a) A sending participant of the national RTGS system of a
participating Member State which is a counterparty to the
Eurosystem monetary policy operations shall receive reim-bursement under the scheme for losses incurred due to sucha participant remaining with non-remunerated currentaccount holdings with its respective NCB where such hold-ings result from the malfunctioning of ►
C1TARGET ◄,
provided that the participant in question (i) has already
fulfilled its reserve requirements; and (ii) is no longer ableto access the Eurosystem's deposit facility on the day inquestion as a result of the malfunctioning.
(b) For participants of the national RTGS system of a partici-
pating Member State that are not monetary policycounterparties and/or have no access to the standing facil-
ities, the following shall apply:
(i) a sending participant which has remained in excess of
funds with its NCB at the end of the day due to amalfunctioning of ►
C1TARGET ◄shall receive
reimbursement at a rate representing the differencefrom day to day between the main refinancing opera-
tions rate and the interest rate applicable to the amount
of funds which have not been sent as a result of themalfunctioning and which have, therefore, remained inthe settlement account at its NCB for the period ofmalfunctioning;
(ii) a receiving participant which was expecting to receive a
payment through ►
C1TARGET ◄shall receive reim-
bursement at a rate representing the difference from dayto day between the main refinancing operations rate andthe interest rate applicable to amounts borrowed from
the respective NCB, or overdrafts on the settlement
account at its NCB, in respect of the amount of fundsnot received as a result of the malfunctioning for theperiod of malfunctioning. For such a receiving partici-pant that has remained in a debit position with its NCB
at the end of the day, that part of the applicable penalty
rate above the marginal lending rate for such a spilloverof intraday credit into an overnight position, stipulatedby the applicable RTGS rules, shall be waived (anddisregarded in future cases of spillover) to the extentthat the spill-over can be attributed to the occurrence of
the malfunctioning.
(c) The scheme shall also apply where a sending participant is
unable to recover funds which have been debited to itsRTGS account, but which are subsequently blocked over-night in the national RTGS system due to malfunctioning,in which case reimbursement shall be made for the perioduntil such funds are returned to the sending participant. The
basis of payments in respect of such unavailability of funds
for a sending participant shall be the main refinancingoperations rate.
6. Application of the scheme to participants of national RTGS
systems of non participating Member States
(a) For sending participants of a national RTGS system of a
non-participating Member State, only the participants thathave incurred additional positive end-of day balances withtheir respective NCB due to a case of malfunctioning may
receive reimbursement under the scheme as set out in the
following:
(i) any limit to the remuneration on the aggregate amount
of overnight deposits on the RTGS accounts of suchparticipants with the NCB of a non-participatingMember State shall be disregarded to the extent thatsuch amount can be attributed to the malfunctioning;2001O0401 — EN — 07.06.2001 — 000.001 — 12
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(ii) the rate of interest in respect of deposits that shall be
used for the calculation of reimbursement payments tothe sending participants of a national RTGS system of
a non-participating Member State shall be the main
refinancing operations rate;
(iii) the reimbursement payment shall represent an amount
equal to the difference from day to day between themain refinancing operations rate and the deposit rate,respectively, for the period of malfunctioning andapplied to the amount of the marginal increase of the
deposit that such a sending participant will have with
its respective NCB as a result of the malfunctioning.
(b) For receiving participants of national RTGS systems of non-
participating Member States, that part of the applicablepenalty rate above the marginal lending rate, stipulated by
the applicable RTGS rules in case of spillover of intraday
credit into overnight, shall be waived (and disregarded infuture cases of spillover) to the extent that the spill-overcan be attributed to the malfunctioning. The occurrence ofsuch spillover shall be ignored for the purpose of access to
intraday credit and/or continued participation in the national
RTGS system concerned. The reimbursement paymentsunder the scheme shall be calculated so as to reach a resultwhereby such a receiving participant will be paid at a raterepresenting the difference from day to day between themain refinancing operations rate and the marginal lending
rate on the overdraft caused by the malfunctioning for the
period of malfunctioning.
7. Procedural rules
(a) Any request for reimbursement lodged by a participant shall
be supported by the necessary information in order to enable
a proper assessment thereof, including:
(i) name, address and status of the participant (i.e. whether
or not the participant is a counterparty for Eurosystemmonetary policy operations);
(ii) time, place and other circumstances surrounding the
submission of the relevant payment order to an NCB/ECB or system operator or of the relevant transmission
through►
C1TARGET ◄;
(iii) name and address of the counterparty (receiving parti-
cipant in case the claimant is a sending participant and
sending participant in case the claimant is a receivingparticipant);
(iv) amount for which recourse to the standing facility of
the Eurosystem was made (or equivalent amounts forparticipants in national RTGS systems of non-partici-pating Member States, or equivalent amounts forparticipants in national RTGS systems of participating
Member States that are not monetary policy counter-
parties) and evidence that such recourse to thestanding facility took place due to the malfunctioningof►
C1TARGET ◄;
(v) if applicable, the amount of any non-remunerated funds
on a current account holding which remained with anNCB/ECB owing to the closure of the deposit facilityand a confirmation that the reserve requirements have
already been fulfilled;
(vi) if applicable, the amount of funds blocked in the
►
C1TARGET ◄system and returned to the partici-
pant on a later value date;
(vii) the amount and calculation of the claim made for reim-
bursement by the participant.
(b) Requests for reimbursement shall be submitted within four
weeks of the date of the malfunctioning in question. If arequest is duly submitted in time but deemed incomplete,2001O0401 — EN — 07.06.2001 — 000.001 — 13
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then the claimant will be required by the NCB of the
national RTGS system where the claimant is a participantto provide the additional information needed within a time
frame of two weeks.
(c) Participants shall submit any requests for reimbursement to
the NCB/ECB where the participant placed the paymentorder or was to receive the payment, irrespective of wherein the various components of ►
C1TARGET ◄the
malfunctioning occurred.
(d) The NCB/ECB of the malfunctioning national RTGS system
shall be the manager of the reimbursement procedure and allclaims received by other NCBs/ECB will be transmitted to itfor assessment.
(e) In order to ensure a harmonised approach and a level
playing field, the final assessment of the reimbursementrequests received under the scheme shall be carried outunder the responsibility of the Governing Council of theECB in close cooperation with the NCB of the malfunc-
tioning national RTGS system.
(f) The NCB/ECB of the malfunctioning national RTGS system
shall communicate the outcome of the assessment in respectof each claim to the participants concerned and the otherNCB/ECB involved promptly and no later than 18 weeks
after the malfunctioning, unless the Governing Council of
the ECB decides otherwise and such decision is communi-cated to the participants concerned.
(g) Reimbursement payments to the participants shall be made
at, or as soon as reasonably practicable after, the time of
the communication of the assessment to the participants,
and in any event not later than five months after themalfunctioning, unless the Governing Council of the ECBdecides otherwise and such decision is communicated tothe participants concerned.
(h) Payments to be made to ►
C1TARGET ◄participants
under the reimbursement scheme shall be made in accor-dance with the national laws and procedures applicable tothe abovementioned paying NCB/ECB. There shall be nointerest payable on the amount of reimbursement under the
scheme in respect of the time period between the occurrence
of the case of malfunctioning and the actual payment ofreimbursement to the participant.
Article 4
Interlinkingprovisions
The provisions of this Article shall apply to the arrangements for cross-
border payments effected or to be effected through interlinking. Other
provisions of this Guideline shall apply to such cross-border arrange-ments to the extent that such provisions are of relevance to them.
(a) Description of interlinking
The ECB and each of the NCBs shall operate an interlinking
component to enable the processing of cross-border paymentswithin►
C1TARGET ◄. Such interlinking components shall
comply with the technical provisions and specifications, which are
available on the ECB's website (www.ecb.int) and updated fromtime to time.
(b) Opening and operation of inter-NCB accounts held at
the NCBs and the ECB
1. The ECB and each of the NCBs shall open an inter-NCB
account on their books for each of the other NCBs and for theECB. In support of entries made on any inter-NCB account,each NCB and the ECB shall grant one another an unlimitedand uncollateralised credit facility.2001O0401 — EN — 07.06.2001 — 000.001 — 14
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2. To effect a cross-border payment, the sending NCB/ECB shall
credit the inter-NCB account of the receiving NCB/ECB heldat the sending NCB/ECB; the receiving NCB/ECB shall debit
the inter-NCB account of the sending NCB/ECB held at the
receiving NCB/ECB.
3. All inter-NCB accounts shall be maintained in the euro unit.
(c) Obligations of the sending NCB/ECB
1. Verification
The sending NCB/ECB shall without delay check all details
contained in the payment order which are necessary in orderfor the payment to be executed, in accordance with the technicalprovisions and specifications referred to in Article 4(a). Ifsyntactical errors or other grounds for rejecting a payment order
are detected by the sending NCB/ECB, the latter shall handle
the data and the payment order in accordance with the RTGSrules of its national RTGS system. Each payment passingthrough interlinking shall have a unique identifier to facilitatemessage identification and error handling.
2. Settlement
As soon as the sending NCB/ECB has checked the validity of a
payment order as referred to in Article 4(c)(1), and provided thatfunds or overdraft facilities are available, the sending NCB/ECBshall without delay:
(a) debit the amount of the payment order from the RTGS
account of the sending participant; and
(b) credit the inter-NCB account of the receiving NCB/ECB, as
maintained on the books of the sending NCB/ECB.
The point in time at which the sending NCB/ECB has carried
out the debiting specified in (a) above shall be referred to asthe settlement time. For national RTGS systems which apply ablocking-of funds procedure, the settlement time shall be thepoint in time at which blocking takes place as referred to in
Article 3(e)(3).
For the purposes of this Guideline, and without prejudice to the
provisions regarding irrevocability referred to in Article 3(e)(3),a payment shall become final (as defined in Article 1 of thisGuideline) in relation to the sending participant concerned atthe settlement time.
(d) Obligations of the receiving NCB/ECB
1. Verification
The receiving NCB/ECB shall check without delay all details
contained in the payment order which are necessary for theappropriate credit entry to be made to the RTGS account of the
receiving participant (including the unique identifier in order to
avoid double crediting). The receiving NCB/ECB shall notprocess any payment orders, which it knows to have been madein error or more than once. It shall notify the sending NCB/ECBof any such payment orders and any payments received pursuantthereto (and shall return any such payments received without
delay).
2. Settlement
As soon as the receiving NCB/ECB has checked the validity of
a payment order as referred to in Article 4(d)(1), the receiving
NCB/ECB shall without delay:
(a) debit the amount of the payment order to the inter-NCB
account of the sending NCB/ECB on its books;
(b) credit the amount of the payment order to the RTGS account
of the receiving participant; and
(c) deliver a positive acknowledgement to the sending NCB/
ECB.2001O0401 — EN — 07.06.2001 — 000.001 — 15
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For the purposes of this Guideline, and without prejudice to the
provisions regarding irrevocability referred to in Article 3(e)(3),a payment shall become final (as defined by Article 1 of this
Guideline) in relation to the receiving participant concerned at
the moment at which its RTGS account referred to in (b) iscredited.
(e) Transfer of responsibility for payment orders
Responsibility for the execution of a payment order shall pass to
the receiving NCB/ECB upon receipt by the sending NCB/ECB ofa positive acknowledgement from the receiving NCB/ECB.
(f) Regime for errors
1. Error handling procedures
Each NCB shall comply with, and ensure that its respective
national RTGS system complies with, the error handling proce-
dures adopted by the Governing Council of the ECB. The ECBshall ensure the same for the ECB payment mechanism.
2. Additional contingency measures
Each NCB shall ensure that its respective national RTGS system
and procedures comply with the user requirements for the addi-
tional contingency measures, referred to in Article 4(a), and the
terms and conditions and the procedures adopted by theGoverning Council of the ECB. The ECB shall ensure thesame for the ECB payment mechanism.
(g) Relation to network service provider
1. All NCBs and the ECB shall be connected or have an entry
point to the network service provider.
2. As between themselves, neither NCBs nor the ECB shall assume
any liability to each other for any failure of the network service
provider. It shall be the responsibility of the NCB/ECB which
has suffered the loss to claim compensation, if any, against thenetwork service provider, whereby such an NCB shall make itsclaim through the ECB.
Article 5
Security provisions
Each NCB shall comply with, and shall ensure that its respective
national RTGS system complies with, the provisions of the security
strategy and security requirements for ►
C1TARGET ◄. The ECB
shall also ensure the same for the ECB payment mechanism.
Article 6
Auditrules
The internal auditors of the ECB and the NCBs shall assess compliance
with the functional, technical and organisational features, includingsecurity provisions, as specified for the relevant ►
C1TARGET ◄
components and arrangements referred to in this Guideline.
Article 7
Managementof ►C1 TARGET ◄
1. The direction, management and control of ►C1TARGET ◄
shall fall within the competence of the Governing Council of the
ECB. The Governing Council shall be entitled to determine the termsand conditions under which cross-border payment systems other thanthe national RTGS systems may use the cross-border facilities of►
C1TARGET ◄or be connected to ►C1TARGET ◄.
2. The Governing Council of the ECB is assisted by the Payment
and Settlement Systems Committee (the ‘PSSC’) in all matters relatedto the►
C1TARGET ◄system. For such purposes, the PSSC shall
set up a subgroup composed of NCB representatives for the nationalRTGS systems.2001O0401 — EN — 07.06.2001 — 000.001 — 16
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3. The daily management of ►C1TARGET ◄shall be entrusted
to the ECB ►C1TARGET ◄Coordinator and to the NCB settlement
managers:
— each NCB and the ECB shall appoint a settlement manager for the
administration and monitoring of its respective national RTGSsystem or, in the case of the ECB, the ECB payment mechanism,
— the settlement manager shall have responsibility for the daily
management of such national RTGS system or, in the case of theECB, the ECB payment mechanism and for handling abnormal
situations and errors, and
— the ECB shall appoint the ECB ►
C1TARGET ◄Coordinator as
the daily manager of the central functions of ►C1TARGET ◄.
Article 8
Force majeure
There shall be no liability on the part of the NCBs/ECB for non-
compliance with this Guideline to the extent that, and for so long as,
there is an inability to perform the obligations in question under theGuideline, or such obligations are subject to suspension or delay,owing to the occurrence of any event arising from any reason or causebeyond reasonable control (including, but not limited to, equipment
failure or malfunction, acts of God, natural disasters, strikes or labour
disputes); provided that the above shall not prejudice the responsibilityto have in place the back-up facilities required by this Guideline, tocarry out the errorhandling procedures, referred to in Article 4(f), asfar as possible despite the force majeure event, and to use all reason-
able efforts to mitigate the effects of any such event while it is taking
place.
Article 9
Disputeresolution
1. Without prejudice to the rights and prerogatives of the Governing
Council of the ECB, any disputes arising between NCBs or between
any NCB and the ECB in connection with ►
C1TARGET ◄which
cannot be settled by agreement between the parties involved in thedispute shall be notified to the Governing Council of the ECB andreferred for conciliation to the PSSC referred to in Article 7(2).
2. In the event of such a dispute between NCBs, or between an NCB
and the ECB, the respective rights and obligations to one another in
relation to payment orders processed through ►
C1TARGET ◄and
all other matters referred to in this Guideline shall be determined: (i)by the rules and procedures referred to in this Guideline and itsAnnexes; and (ii) as a supplementary source in disputes concerningcross-border payments through interlinking, by the laws of the Member
State of the seat of the receiving NCB/ECB.
Article 10
Finalprovisions
This Guideline is addressed to the national central banks of partici-
pating Member States.
This Guideline shall enter into force on 7 June 2001.From that date, Guideline ECB/2000/9 shall be repealed and replaced.This Guideline shall be published in the Official Journal of the
European Communities .2001O0401 — EN — 07.06.2001 — 000.001 — 17
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ANNEX I
NATIONALRTGSSYSTEMS
Member State Nameofsystem Settlementagent Location
Belgium Electronic Large-value Interbank
Payment system (ELLIPS)Banque Nationale de
Belgique/Nationale
Bank van BelgiëBrussels
Germany Euro Link System (ELS) Deutsche Bundesbank Frankfurt
Greece Hellenic Real-time Money
Transfer Express system
(HERMES)Bank of Greece Athens
Spain Servicios de Liquidación del
Banco de España (SLBE)Banco de España Madrid
France Transferts Banque de France
(TBF)Banque de France Paris
Ireland Irish Real-time Interbank Settle-
ment system (IRIS)Central Bank of Ireland Dublin
Italy ►C1Sistema di regolamento
lordo BI-REL ◄Banca d'Italia Rome
Luxembourg Luxembourg Interbank Payment
systems (LIPS-Gross)Banque centrale du
LuxembourgLuxembourg
TheNether-
landsTOP De Nederlandsche Bank Amsterdam
Austria Austrian Real-time Interbank
Settlement system (ARTIS)Oesterreichische Natio-
nalbankVienna
Portugal Sistema de Pagamentos de
Grandes Transacções (SPGT)Banco de Portugal Lisbon
Finland Bank of Finland (BoF) Suomen Pankki Helsinki2001O0401 — EN — 07.06.2001 — 000.001 — 18
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ANNEX II
DOMESTICPAYMENTFEES
The price of domestic RTGS transfers in euro will continue to be determined at
the national level, with reference to the principles of cost recovery, transparency
and non-discrimination and taking into account the fact that the price for
domestic and cross-border transfers in euro should be broadly in the same range
so as not to affect the singleness of the money market.
National RTGS systems shall disclose their fee structure to the ECB, to all other
participating NCBs, to participants in national RTGS systems, and to other inter-
ested parties.
Methodologies to determine the costs of national RTGS systems will be harmo-
nised to an adequate level.2001O0401 — EN — 07.06.2001 — 000.001 — 19
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ANNEX III
CROSS-BORDERPAYMENTFEES
The fee (excluding VAT) to be charged for cross-border payments through
►C1TARGET ◄between direct participants will be based on the number of
transactions sent by a participant within a single RTGS system, according to a
degressive scale.
The degressive scale is as follows:
— EUR 1,75 for each of the first 100 transactions per month,
— EUR 1,00 for each of the next 900 transactions per month,— EUR 0,80 for each subsequent transaction in excess of 1000 per month.
For the purpose of the application of the degressive tariff, the payment volume
to be considered is the number of transactions entered into by a same legal
entity within a single RTGS system or the payment transactions entered by
different entities for execution through the same settlement account.
The application of the above tariff scheme will be reviewed from time to time.
Fees are charged only by the sending NCB/ECB to the sending participants in
the national RTGS system/ECB payment mechanism (EPM). No fees are
charged by the receiving NCB/ECB to the receiving participant. There will be
no charge for inter-NCB transfers, i.e. where the sending NCB/ECB is acting
on its own behalf.
Fees will cover the queuing of the payment instruction (if applicable), the
debiting of the sender, the crediting of the inter-NCB account of the receiving
NCB/ECB on the books of the sending NCB/ECB, the sending of the payment
settlment message request (PSMR) via the interlinking network, the debiting of
the inter-NCB account of the sending NCB/ECB on the books of the receiving
NCB/ECB, the crediting of the RTGS participant, the sending of the payment
settlement message notification (PSMN) via the interlinking network, the
communication of the payment message to the RTGS participant/receiver and
confirmation of settlement (if applicable).
The cross-border ►
C1TARGET ◄fee structure does not cover the costs of
the telecommunications link between the sender and the national RTGS system
in which the sender is a participant. The fee for this telecommunications link
will continue to be paid according to the domestic rules.
National RTGS systems may not charge any fee for the conversion of transfer
orders from national currency units into euro units or vice versa.
RTGS systems may charge extra fees for additional services they may provide
(e.g. the entering of paper-based payment instructions).
The possibility of applying different fees according to the time of execution of
the payment instructions will be considered on the basis of experience gained
during the operation of the system.2001O0401 — EN — 07.06.2001 — 000.001 — 20
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ANNEX IV
TARGETHOURSOFOPERATION
►C1TARGET ◄and, therefore, NCBs and national RTGS systems partici-
pating in or connected to ►C1TARGET ◄, applies the following rules with
respect to the time of operation.
1. The reference time for ►C1TARGET ◄shall be ‘European Central Bank
time’, defined as the local time at the seat of the ECB.
2.►C1TARGET ◄will have common operating hours from 07.00 to 18.00.
3. Early opening, before 07.00, may take place after prior notification has been
sent to the ECB:
(i) for domestic reasons (e.g. in order to facilitate settlement of securities
transactions, to settle balances of net settlement systems, or to settle
other domestic transactions, such as batch transactions channelled by
NCBs into RTGS systems during the night); or
(ii) for ESCB-related reasons (e.g. on days when exceptional payment
volumes are expected, or in order to reduce foreign exchange settlment
risk when processing the euro leg of foreign exchange deals involving
Asian currencies).
4. A cut-off for customer payments (both domestic and cross-border) of one
hour before the normal ►C1TARGET ◄closing time will apply; the
remaining time will be used only for interbank payments (both domestic
and cross-border) to transfer liquidity between participants. Customer
payments are defined as payment messages in the MT100 format, or equiva-
lent national message format (which would use the MT100 format for cross-
border transmission). The implementation of the 17.00 cut-off time for
domestic payments is to be decided by each NCB in cooperation with its
banking community. In addition, NCBs may continue to process domestic
customer payments that were in a queue at 17.00.2001O0401 — EN — 07.06.2001 — 000.001 — 21
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ANNEX V
LISTOF‘OUT’COLLATERAL
which can be used to collateralise intra-day credit for each NCB of a participating Member State that
has declared its intention to use certain collateral located in the country of a national central bank of a
Member State which has not adopted the euro and whose intention has been approved by the ECB
pursuant to Article 3(f)(3) and Article 3(g) of the ►C1TARGET ◄Guideline:
ParticipatingNCB Approveduseof‘out’collateral
DEUTSCHE BUNDESBANK — Danish Government and mortgage credit bonds
— Swedish Government debt instruments and mortgage
institutions' bonds
— UK Government gilt-edged securities— UK Treasury bills
BANCO DE ESPAÑA — UK Government gilt-edged securities
— UK Treasury bills
BANQUE DE FRANCE — Danish Government and mortgage credit bonds
— Swedish Government debt instruments and mortgage
institution's bonds
— UK Government gilt-edged securities
— UK Treasury bills
CENTRAL BANK OF IRELAND — UK Government gilt-edged securities
— UK Treasury bills
BANQUE CENTRALE DU LUXEM-
BOURG— Danish Government and mortgage credit bonds
DE NEDERLANDSCHE BANK NV — Danish Government and mortgage credit bonds
— Swedish Government debt instruments and mortgage
institutions' bonds
SUOMEN PANKKI — Danish Government and mortgage credit bonds
— Swedish Government debt instruments and mortgage
institutions' bonds
— UK Government gilt-edged securities— UK Treasury bills2001O0401 — EN — 07.06.2001 — 000.001 — 22