2001O0401—EN—22.03.2002—001.001—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)
(OJL140,24.5.2001,p.72)
Amendedby:
OfficialJournal
No page date
►M1Guideline of the European Central Bank of 27 February 2002 (ECB/
2002/1)L67 74 9.3.2002
Correctedby:
►C1Corrigendum,OJL167,22.6.2001,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)
THEGOVERNINGCOUNCILOFTHEEUROPEANCENTRALBANK,
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 Systemof CentralBanksandoftheEuropeanCentralBank(hereinafterreferredtoasthe
‘Statute’),
Whereas:
(1)The first indent of Article 105(2) of the Treaty and the first
indentofArticle3.1oftheStatuterequiretheEuropeanSystem
ofCentralBanks(ESCB)todefineandimplementthemonetary
policyoftheCommunity.
(2)ThefourthindentofArticle105(2)oftheTreatyandthefourthindent of Article 3.1 of the Statute empower the EuropeanCentral Bank (ECB) and the national central banks (NCBs) topromotethesmoothoperationofpaymentsystems.
(3)Article22oftheStatuteentruststheECBandtheNCBswiththe
provisionoffacilities toensureefficient andsoundclearing and
payment systems within the Community and with other coun-tries.
(4)Theachievementofasinglemonetarypolicyentailstheneedforpaymentarrangementsthroughwhichthemonetarypolicyopera-tions between NCBsand credit institutions can be effected in a
timely and secure manner, and which will foster the singleness
ofthemoneymarketwithintheeuroarea.
(5)Such objectives warrant a payment arrangement that operateswithahighlevelofsecurity,withinveryshortprocessingtimesandatlowcost.
(6)►C1TARGET ◄is governed by a legal framework, which
hasapplied fromthe starting date of Stage III ofeconom ic and
monetaryunion(EMU).ThisGuidelinereplacesGuidelineECB/
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
ESCBaspectsarenotincludedinthisGuideline.
(8)In accordance with Articles 12.1 and 14.3 of the Statute, ECBguidelinesformanintegralpartofCommunitylaw,
HASADOPTEDTHISGUIDELINE:
Article 1
Definitions
1. ForthepurposesofthisGuideline:
— ‘national RTGS systems’ shall mean those Real-time GrossSettle-
mentsystemswhicharecomponentpartsof ►C1TARGET ◄as
identifiedinAnnexIofthisGuideline,2001O0401—EN—22.03.2002—001.001—2
▼B
— ‘ECB payment mechanism’ shall mean the payment arrangements
organised within the ECB and connected to ►C1TARGET ◄
forthepurposeofeffecting (i)payments between accountsheld at
the ECB; and (ii) payments through ►C1TARGET ◄between
accountsheldattheECBandattheNCBs,
— ‘interlinking’ shall mean the technical infrastructures, design
featuresandprocedureswhichareputinplacewithin,orconstituteadaptations of, each national RTGS systemand the ECB paym ent
mechanism for the purpose of processing cross-border payments
within►
C1TARGET ◄,
— ‘participants’ shall mean the entities which have direct access to a
national RTGS systemand 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
capacityassettlementagentorotherwise,
— ‘participating MemberStates’shallmeanallMemberStateswhich
haveadoptedthesinglecurrencyinaccordancewiththeTreaty,
— ‘NCBs’shallmeanthenationalcentralbanksoftheMemberStates
which have adopted the single currency in accordance with theTreaty,
— ‘Eurosystem’shallmeantheECBandthenationalcentralbanksof
the Member States which have adopted the single currency inaccordancewiththeTreaty,
— ‘networkserviceprovider’shallmeantheundertakingappointedby
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 theNCBinwhosenametheaccountisopened,
— ‘domesticpayments’shallmeanpaymentseffectedortobeeffected
within one national RTGS systemor within the ECB paym entmechanism,
— ‘cross-border payments’ shall mean payments effected or to be
effectedbetweentwonationalRTGSsystemsorbetweenanationalRTGSsystemandtheECBpaymentmechanism,
— ‘RTGS rules’ shall mean the regulations and/or contractual provi-
sions,whichareappliedtoanationalRTGSsystem,
— ‘RTGSaccount’shallmeananaccount(or,totheextentpermitted
inaccordance withtherelevantRTGSrulesinquestion,anygroupofconsolidatedaccounts,providedthatallsuchaccountholdersare
jointly and severally liable vis-à-vis the RTGS systemin case of
default) opened in the name of a participant on the books of anNCBortheECBonwhichdomesticpaymentsand/orcross-borderpaymentsaresettled,
— ‘paymentorder’shallmeananinstructionbyaparticipantinaccor-
dancewiththeapplicable RTGSrulestoplace atthedisposalofa
receiving participant, including anNCBortheECB,anamountof
moneybymeansofabookentryonanRTGSaccount,
— ‘sending participant’ shall mean the participant which has initiated
apaymentbygivingapaymentorder,
— ‘sendingNCB/ECB’shallmeantheECBortheNCBatwhichthe
sendingparticipantmaintainsitsRTGSaccount,
— ‘receiving participant’ shallmean theparticipant designated bythe
sending participant as the participant to whose RTGS account theamountspecifiedintherelevantpaymentordershallbecredited,
— ‘receivingNCB/ECB’shallmeantheECBortheNCBatwhichthe
receivingparticipantmaintainsitsRTGSaccount,
— ‘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 StatesandtheMemberStatesoftheEuropeanFreeTradeAssociation,asamendedbytheProtocoladjustingtheAgreementontheEuropeanEconomicAreaof17March1993,2001O0401—EN—22.03.2002—001.001—3
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— ‘remoteparticipant’shallmeananinstitutionestablishedinanEEA
countrywhichparticipatesdirectlyinanationalRTGSsystemofan(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-lishedabranchinthehostMemberState,
— ‘indirect participant’ shall mean an institution without its own
RTGS account which is nevertheless recognised by a nationalRTGS systemand 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 hasacceptedtorepresenttheindirectparticipant,
— ‘intraday credit’ shall mean credit extended and reimbursed within
aperiodoflessthanonebusinessday,
— ‘standingfacilities’shallmeanthemarginallendingfacilityandthe
depositfacilityorganisedbytheEurosystem,
— ‘marginallendingrate’shallmeantheinterestrateapplicablefrom
timetotimefortheEurosystemmarginallendingfacility,
— ‘deposit facility rate’ shall mean the interest rate applicable from
timetotimefortheEurosystemdepositfacility,
— ‘main refinancing operations rate’ shall mean the marginal interest
rate applicable from time totime forthe Eurosystem'smostrecentmain 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
thecross-borderuseofcollateralasestablishedbytheESCB,
— ‘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
theearmarkedfundsoravailable creditwillbeusedfortheexecu-tion of such payment order; the earmarking of funds or availablecreditisreferredtointhisGuidelineas‘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,
exceptincasesofimperfections intheunderlyingtransaction(s)orpayment order(s) arising from criminal offences or fraudulent acts(wherebyfraudulentactsshallalsoincludepreferencesandtransac-tions at under-value during suspect periods in the case ofinsolvency)providedthat suchhasbeendecidedonacase-by-case
basis by a court of competent jurisdiction or another competent
disputeresolutionbody,orarisingfromerror,
— ‘malfunctioning of a national RTGSsystem’ or ‘malfunctioning of
►
C1TARGET ◄’or‘malfunctioning’shallmeantechnicaldiffi-
culties, defects orfailures 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
systemortheECBpaymentmechanismorinterlinking,thatmakes
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 inmorethanonenationalRTGSsystem(dueto,forinstance,abreak-
downrelatedtothenetworkserviceprovider),
—‘►
C1TARGET ◄reimbursementscheme’orthe‘reimbursement
scheme’orthe‘scheme’shallmeantheschemeforreimbursement
in cases of malfunctioning of ►C1TARGET ◄referred to in
Article3(h)ofthisGuideline.
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—22.03.2002—001.001—4
▼B
ECB,wherebysuchamendments andadditional documents shall enter
intoforceasanintegralpartofthisGuidelineonthedatespecifiedbytheGoverningCounciloftheECB,aftercommunicationtotheNCBs.
Article 2
Descriptionof ►
C1 TARGET ◄
1. The Trans-European Automated Real-time Gross Settlement
ExpressTransfersystem isa real-time grosssettlement system forthe
euro. Target is composed of the national RTGS systems, the ECB
paymentmechanismandinterlinking.
2. TheRTGSsystemsoftheEUMemberStateswhichwereexisting
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 ◄,insofarassuchRTGSsystemscomplywiththe
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 procedures
for►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
complieswiththefeaturessetoutbelow.
(a)Accesscriteria
1. Onlysupervisedcreditinstitutions,asdefinedinArticle1(1)of
Directive 2000/12/EC of the European Parliament and of theCouncilof20March2000relating tothetakingupandpursuitofthebusinessofcreditinstitutions(
1),whichareestablishedin
the EEA shall be admitted as participants in a national RTGS
system. As an exception, and without prejudice to Article 7(1)of this Guideline, the following entities may also be admittedas participants in a national RTGS systemupon approval bytherelevantNCB:
(i) treasury departments of central or regional governments of
MemberStatesactiveinthemoneymarkets;
(ii) public sector bodies of Member States authorised to hold
accounts for customers; for the purposesof this Guideline,‘public sector’ shall have the meaning of Article 3 of
Council Regulation (EC) No 3603/93 of 13 December
1993specifyingdefinitionsfortheapplicationoftheprohi-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 competentauthority designated assuchunder the terms ofthe above-
mentioned Council Directive (with the exclusion of the
institutions defined under Article 2(2) of the abovemen-tioned Directive), providedtheinvestment firminquestionisentitledtocarryouttheactivitiesreferredtounderitems1(b),2or4ofSectionAoftheAnnextoDirective 93/22/EEC;2001O0401—EN—22.03.2002—001.001—5
(1) OJL126,26.5.2000,p.1.
(2) OJL332,31.12.1993,p.1.
(3) OJL141,11.6.1993,p.27.▼M1
▼B
▼B
(iv) organisations providing clearing or settlement services
subjecttooversightbyacompetentauthority.
2. ThecriteriaforaccesstoanationalRTGSsystemandtheproce-
dure for the assessment thereof shall be set out in the RTGSrules concerned and be made available to interested parties. Inaddition to the criteria mentioned in Article 3(a)(1), thesenationalcriteriamayinclude, inter alia:
— adequatefinancialstrength,
— expectedminimumnumberoftransactions,
— thepaymentofanentryfee,
— legal,technicalandoperationalaspects.
TheRTGSrulesshallalsorequirethatlegalopinions,basedon
the Eurosystem's harmonised terms of reference for legal
opinions, shall be obtained in respect of applicants for review
by the relevant NCB as determined and specified by theGoverningCounciloftheECB.ThetermsofreferenceforlegalopinionsshallbemadeavailablebytherespectiveNCBtointer-estedparties.
3. AparticipantinanationalRTGSsystempursuanttothisArticle
3(a)(1) and (2) shall have access to the cross-border paymentfacilitiesof ►
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 anational RTGS system(by way of suspension or expulsion)should cover any event which entails systemic risk or couldotherwisecauseseriousoperationalproblems,including:
(i) where a participant enters into insolvency proceedings, or
wheresuchproceedingsareimpending;
(ii) whereaparticipantisinbreachoftheRTGSrulesinques-
tion;or
(iii) where one or more access criteria for participation in the
relevantnationalRTGSsystemarenolongerfulfilled.
(b)Currencyunit
All cross-border payments to be processed through interlinking
shall be in the euro unit. NCBs shall ensure that payment ordersdenominatedintheirrespectivenationalcurrencyunitsoftheeuroto be effected through interlinking are converted into and trans-
mittedineurounits.
(c)Pricingrules
1. The pricing policy of the ►
C1TARGET ◄systemshall be
determinedbytheGoverningCounciloftheECBwithreference
to the principles of cost recovery, transparency and non-discri-
mination.
2. DomesticpaymentsineuroeffectedthroughthenationalRTGS
systemare subject to the pricing rules of the national RTGSsystemconcerned, which, in turn, shall respect the policy on
pricingsetoutinAnnexII.
3. Cross-borderpaymentseffectedwithin ►
C1TARGET ◄shall
be subject to a common price established by the GoverningCounciloftheECBandspecifiedinAnnexIII.
4. Pricesshallbemadeavailabletointerestedparties.
(d) Time of operation
1. Operatingdays
From2002, Target as a whole shall be closed on Saturdays,
Sundays, New Year's Day, Good Friday and Easter Monday(accordingtothecalendarapplicable attheseatoftheECB),1May(LabourDay),ChristmasDayand26December.2001O0401—EN—22.03.2002—001.001—6
▼M1
▼M1
Without prejudice to the above, only the following limited
settlement services may, extraordinarily, during the years 2002to2004,beundertakeninHermes,theGreekRTGSsystem,on
Good Friday and Easter Monday (according to the calendar
applicableattheseatoftheECB),whenthesedaysdonotcoin-cidewiththeOrthodoxEaster:
(a) settlementofdomesticcustomerpayments,and
(b) settlement of payments related to the delivery of cash from
andreturnofcashtotheBankofGreece,and
(c) settlement operations oftheAthensClearing Officeandthe
DIASretailpaymentsystems.
2. Hoursofoperation
Thehoursofoperation ofnational RTGSsystemsshallcomply
withthespecificationssetoutinAnnexIV.
(e)Paymentrules
1. Allpaymentsdirectlyresultingfromormadeinconnectionwith
(i)monetarypolicyoperations;(ii)thesettlementoftheeurolegof foreign exchange operations involving the Eurosystem; and
(iii) the settlement of cross-border large-value netting systems
handling 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 orthrough intraday credit granted by such NCB/ECB, as the case
maybe,tothatparticipantinaccordancewithArticle3(f).
3. RTGSrulesandtherulesfortheECBpaymentmechanismshall
specifythepointintime atwhichpayment ordersbecome irre-vocable,whichmustnotbelaterthanthepointintimeatwhich
theRTGSaccountofthesendingparticipantheldatthesending
NCB/ECB is debited with the amount concerned. Wherenational RTGS systems apply a blocking-of funds procedurebefore debiting the RTGS account, such irrevocability shall beprovidedfromthatearlierpointintimeatwhichblockingtakesplace.
(f)Intradaycredit
1. Subject to the provisions of this Guideline, each NCB shall
provide intraday credit to the supervised credit institutionsreferred to in Article 3(a) participating in the national RTGSsystemof such NCB provided that such credit institution is an
eligiblecounterpartyforEurosystemmonetarypolicyoperations
andhasaccesstothemarginal lending facility. Providedthat itis a clear condition that intraday credit shall remain limited tothe day in question and that no extension to overnight creditshallbepossible,intradaycreditmayalsobegrantedto:
(i) treasurydepartmentsreferredtoinArticle3(a)(1)(i);
(ii) publicsectorbodiesreferredtoinArticle3(a)(1)(ii);
(iii) investmentfirmsreferredtoinArticle3(a)(1)(iii),oncondi-
tion that such investment firm submits satisfactory written
evidencethat:
(a) eitherithasconcludedaformalagreementwithaEuro-
systemm onetary policy counterparty to cover anyresidualdebitpositionattheendofthedayinquestion;or2001O0401—EN—22.03.2002—001.001—7
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(b) access to intraday credit is limited to investment firms
whichholdanaccountwithacentral securitiesdeposi-tory,andtheinvestmentfirminquestionissubjecttoa
liquidity deadline or the amount of intraday credit is
subjecttoaceiling.
Should an investment firm for any reason be unable to
reimbursetheintradaycreditontime,itshallbesubjecttopenalties set in accordance with the following. If such an
investment firm has a debit balance on its RTGS account
as at the close of business of ►
C1TARGET ◄for the
first time within any 12-month period, then the followingshall apply. The relevant NCB shall promptly impose apenalty onthat participant calculated at a rate fivepercen-tage points above the marginal lending rate onthe amount
ofsuchdebitbalance(e.g.shouldthemarginallendingrate
be4%,thepenaltywouldbe9%).Shouldsuchaninvest-ment firm repeatedly be in such a debit position, then thepenalty interest rate applied to that participant would beincreased by a further 2,5 percentage points each time
such a debit position were to occur within the 12-month
periodreferredtoabove;
(iv) supervised credit institutions referred to in Article 3(a)(1),
whicharenoteligiblecounterpartiesforEurosystemmone-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, foranyreason,theyareunabletoreimbursetheintradaycreditontime;
(v) organisationsprovidingclearingorsettlementservices(and
subjecttooversightbyacompetentauthority)oncondition
that the arrangements for granting intraday credit to such
organisations are submitted in advance to the GoverningCounciloftheECBforapproval.
2. Each NCB shall provide intraday credit by means of collatera-
lised intraday overdrafts at the NCBand/or intraday repurchase
transactions 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 timetotime.
3. Intraday credit shall be based on adequate collateral. Eligible
collateral shall be the same assets and instruments and besubject to the same valuation and risk control rules as thoseprescribedforeligiblecollateral formonetarypolicyoperations.Except for treasury departments and public sector bodies
referred to respectively in Article 3(a)(1)(i) and (ii), an NCB
shall not accept as underlying assets debt instruments issued orguaranteedbytheparticipant,orbyanyotherentitywithwhichthe counterparty has close links, ►
C1as defined in Article
1(26) of Directive 2000/12/EC and as applied for monetary
policyoperations. ◄
Each of the national central banks of the EU Member States
whose RTGS systemis connected to ►C1TARGET ◄
pursuant to Article 2(2) is allowed to establish and maintain alist of eligible assets which can be used by institutions partici-
pating in their relevant national RTGS systemconnected to
►
C1TARGET ◄to collateralise euro credits granted by
such national central banks, provided that the assets on suchlistmeetthesamequalitystandardsandaresubjecttothesamevaluation and risk control rules as those prescribed for eligible
collateral for monetary policy operations. The national central
bankinquestionshallsubmitsuchlistofeligibleassetsforpriorapprovalbytheECB.
4. TheGoverningCounciloftheECBmayexempttreasurydepart-
ments, referred to in Article 3(a)(1)(i), from the requirement of2001O0401—EN—22.03.2002—001.001—8
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collateralisationinrelationtotheprovisionofintradaycreditset
outinArticle3(f)(3)uponaproposalfromtherelevantNCB.
5. IntradaycreditprovidedinaccordancewithArticles3(f)and(g)
shallbefreeofinterest.
6. Intradaycreditshallnotbegrantedtoanyremoteparticipant.7. TheRTGSrulesshallcontainthegroundsonthebasisofwhich
therelevantNCBmaydecidethattheaccessofaparticipant tointradaycreditmaybesuspendedorterminated.Suchadecision
in respect of an eligible counterparty for Eurosystemm onetary
policy operations shall be approved by the ECB before itbecomeseffective.
Thegroundsforsuchsuspensionortermination shallcoverany
event which entails systemic risk or which could otherwiseendangerthesmoothoperationofpaymentsystems,including:
(i) whereaparticipantentersintoinsolvencyproceedings;
(ii) whereaparticipantisinbreachoftheRTGSrulesinques-
tion;
(iii) where the entitlement of a participant to participate in the
nationalRTGSsystemissuspendedorterminated;and
(iv) where,incaseofaparticipantwhichisaneligiblecounter-
party for Eurosystemm onetary policy operations, theparticipantceasestobeeligibleorisexcludedorsuspendedfromaccesstoanyorallsuchoperations.
(g)Intradaycreditagainstassetsoutsidetheeuroarea
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)locatedinEEAcountries;(ii)issuedbyentitiesestablished
inEEAcountries;and(iii)denominatedinEEAcurrenciesorother
widelytradedcurrencies.TheNCBshavingreceivedtheauthorisa-tiontoaccepttheseassetsandthelistsofsuchassetsaresetoutinAnnexV.
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 to
such assets and over the mechanisms to prevent such assetsfrombeingusedinmonetarypolicyoperations;
(ii) these assets shall not be used on a cross-border basis (i.e.
counterparties may use such assets only to receive fundsdirectly fromthe national central bank which has beenauthorised by the ECB to grant intraday credit against theseassets);
(iii) in addition, these assets shall only be used by participants to
secure intraday credits granted bythe relevant NCB and maynotbeusedto secureovernight credit. Incase intraday credit
secured by these assets needs to be extended overnight, the
assetsinquestionneedtobesubstitutedwithcollateraleligiblefor 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-
ties set in accordance with the following will be imposed on
such participant. If the participant commits the violationdescribedaboveforthefirsttimewithinany12-monthperiod,thentherelevantNCBshallpromptlyimposeapenaltyonthatparticipantcalculatedatarate2,5percentagepointsabovethe
marginal lending rate on the amount of the overnight credit
secured by these assets. Should the participant repeatedly beinsuchviolation, thenthepenaltyinterestrateappliedtothatparticipant would be increased by a further 1,25 percentagepoints each time such a violation were to occur within the12-month period referred to above. Should an investment2001O0401—EN—22.03.2002—001.001—9
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firmor a credit institution referred to in Article 3(f)(1)(iv)
commit the violation described above, only the penalties setoutineitherArticle3(f)(1)(iii)orArticle3(f)(1)(iv)willapply
tosuchaparticipant.
(h)►
C1TARGET ◄reimbursementscheme
1. Establishmentofa ►C1TARGET ◄reimbursementscheme
In the event of malfunctioning of ►C1TARGET ◄, and by
way of derogation fromArticle 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 and
address certain negative effects of malfunctioning as specified
inthefollowing.
Thereimbursementschemeisnotintendedtoexcludethepossi-
bilityforparticipantstoavailthemselvesofotherlegalmeansto
claim compensation in a case of malfunctioning. Participants
should either (i) accept the arrangements of the scheme, andanyreceiptofreimbursementpaymentsthereunder,withoutanyfurtherlegalaction;or(ii)rejectthearrangementsoftheschemeif the participant instead wishes to seek other legal means forcompensation of damages, to the extent such is possible. Any
reimbursement payment under the scheme shall be made on
condition that the receipt of such payment is in full and finalsettlementofalltheparticipant'sclaimsarisingfromthespecificpaymentaffectedbythemalfunctioning.
2. Scopeofapplicationofthescheme
(a) For cases of malfunctioning which negatively affects both
domesticandcross-borderpayments,theschemeshallapplytobothcategoriesofaffectedpaymentsandbetheonlysuch►
C1TARGET ◄reimbursement arrangement offered by
the members of the ESCB. Conversely, NCBs may applyalternative regimes for cases of malfunctioning which only
affects domestic payments within the malfunctioning
nationalRTGSsystem.
(b) Theschemeisonlyavailabletothesendingparticipantsand/
orthereceivingparticipantsofanationalRTGSsystemthathavehadrecourse(subjecttoArticles3(h)(5)and3(h)(6))tothe standing facilities due to the malfunctioning of►
C1TARGET ◄. The scheme does not cover indirect
participants, unless such indirect participants have had
recoursetothestanding facilities duetothemalfunctioningof►
C1TARGET ◄.
3. Conditionsforeligibilityunderthescheme
(a) As a condition for a sending participant to be eligible to
receivereimbursementunderthescheme,itmustbeableto
establish that it has entered a payment order (i) which was
not processed on the same day, or (ii) which was returnedwithout successful completion on the same day due to themalfunctioning of ►
C1TARGET ◄, or (iii) which trig-
gered the debiting of the sending participant's account forthepaymentorderenteredintoanationalRTGSsystembut
which was thereafter neither executed nor returned on the
same day due to the malfunctioning. In the case of a stop-sendingstatusofanationalRTGSsystem,asendingpartici-pantmay,alternatively,nothavebeenabletoenteracertainpayment order. Such a participant may still lodge a claim
under the scheme provided that the participant can submit
supporting evidence to the NCB of its national RTGSsystemthat shows to the satisfaction of the ESCB that ithadtheintentiontoenterthepaymentorderinquestionbutwasunabletodosoduetothemalfunctioningandthestop-sendingmessage.2001O0401—EN—22.03.2002—001.001—10
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(b) As a condition for a receiving participant to be eligible to
receivereimbursementunderthescheme,itmustbeabletoestablishthatitwasexpectingtoreceiveapaymentthrough
►
C1TARGET ◄as a result of a payment order entered
intoanationalRTGSsystemontherelevantdate(orother-wiseasprovidedforunderArticle3(h)(3)(a))andthatitdidnot receive such payment on the relevant date due to themalfunctioningof ►
C1TARGET ◄.
4. Rules regarding the calculation of reimbursement under the
scheme
(a) In the event of malfunctioning of ►C1TARGET ◄, the
sendingparticipantmayhaveatemporaryexcessofliquiditywith the sending NCB, whilst the NCB of the receivingparticipant may have to provide the amounts of the failed
paymenttothatreceivingparticipant. Therefore,thedeposit
facility may be activated in the first case, and the marginallending facility in the second case. In both these cases, therates applied are more favourable to the ESCB than themarket rate (which, for the purposes of the scheme, isconsideredtobethemainrefinancingoperationsrate).
(b) The amounts to be reimbursed to the participants under the
schemeshallbedeterminedbyapplying:
(i) thedifferenceinratefromdaytodaybetweenthemain
refinancing operations rate and the rate applied by the
Eurosystemfor am ounts lent or deposited under the
standing facilities (the marginal lending rate or thedepositrate,respectively);
(ii) totheamountrepresentingtheeffective useoftherele-
vant standing facility by the sending or the receiving
participant andupto the amount ofthe payment orders
not 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 ofmalfunctioning’).
(c) For a sending participant, the scheme shall exclude from
reimbursement any amounts sucha participant has used forthe fulfilment of reserve requirements and any amountsrepresenting losses the participant may have incurred indepositingexcessfundsinthemarket.
(d) For a receiving participant, the scheme shall exclude from
compensation any amounts representing losses the partici-
pantmayhaveincurredduetoborrowinginthemarket.
(e) Theschemeshallnotcoveranylossesincurredasaresultof
any underlying contractual or other arrangements that any
participant may have with another participant or any otherthirdparty.
(f) Reimbursement payments under the scheme to sending or
receiving participants shall be made by the NCB/ECB ofthemalfunctioningnationalRTGSsystem.
5. Additional rules regarding calculation of reimbursement under
theschemeinparticularcases
(a) A sending participant of the national RTGS systemof a
participating Member State which is a counterparty to theEurosystem monetary policy operations shall receive reim-bursementundertheschemeforlossesincurredduetosucha participant remaining with non-remunerated current
account holdings with its respective NCBwheresuchhold-
ings result fromthe m alfunctioning of ►
C1TARGET ◄,
provided that the participant in question (i) has alreadyfulfilled its reserve requirements; and (ii) is no longer ableto access the Eurosystem's deposit facility on the day inquestionasaresultofthemalfunctioning.2001O0401—EN—22.03.2002—001.001—11
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(b) For participants of the national RTGS systemof a partici-
pating Member State that are not monetary policycounterparties and/or have no access to the standing facil-
ities,thefollowingshallapply:
(i) a sending participant which has remained in excess of
funds with its NCB at the end of the day due to a
malfunctioning of ►
C1TARGET ◄shall receive
reimbursement at a rate representing the differencefromday to day between the m ain refinancing opera-tionsrate and the interest rate applicable to the amountof funds which have not been sent as a result of the
malfunctioning and which have, therefore, remained in
the settlement account at its NCB for the period ofmalfunctioning;
(ii) areceivingparticipantwhichwasexpectingtoreceivea
paymentthrough ►
C1TARGET ◄shallreceivereim-
bursementataraterepresentingthedifferencefromday
todaybetweenthemainrefinancingoperationsrateand
the interest rate applicable to amounts borrowed fromthe respective NCB, or overdrafts on the settlementaccount 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-
pantthathasremainedinadebitpositionwithitsNCB
attheendoftheday,thatpartoftheapplicablepenaltyrateabovethemarginallendingrateforsuchaspilloverof intraday credit into an overnight position, stipulatedby the applicable RTGS rules, shall be waived (and
disregarded in future cases of spillover) to the extent
thatthespill-overcanbeattributedtotheoccurrenceofthemalfunctioning.
(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 systemdue to m alfunctioning,in which case reimbursement shall be made for the period
untilsuchfundsarereturnedtothesendingparticipant.The
basisofpaymentsinrespectofsuchunavailability offundsfor a sending participant shall be the main refinancingoperationsrate.
6. Application of the scheme to participants of national RTGS
systemsofnonparticipatingMemberStates
(a) For sending participants of a national RTGS systemof a
non-participating Member State, only the participants that
have incurred additional positive end-of day balances with
their respective NCB due to a case of malfunctioning mayreceive reimbursement under the scheme as set out in thefollowing:
(i) anylimit to the remuneration onthe 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 that
suchamountcanbeattributedtothemalfunctioning;
(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 systemofa non-participating Member State shall be the mainrefinancingoperationsrate;
(iii) the reimbursement payment shall represent an amount
equal to the difference fromday to day between the
main refinancing operations rate and the deposit rate,respectively, for the period of malfunctioning andapplied to the amount of the marginal increase of thedeposit that such a sending participant will have withitsrespectiveNCBasaresultofthemalfunctioning.2001O0401—EN—22.03.2002—001.001—12
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(b) ForreceivingparticipantsofnationalRTGSsystemsofnon-
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 ofsuchspillover shall be ignored for the purpose of access to
intradaycreditand/orcontinuedparticipationinthenational
RTGS system concerned. The reimbursement paymentsundertheschemeshallbecalculated soastoreacharesultwhereby such a receiving participant will be paid at a raterepresenting the difference fromday to day between themain refinancing operations rate and the marginal lending
rate on the overdraft caused by the malfunctioning for the
periodofmalfunctioning.
7. Proceduralrules
(a) Anyrequestforreimbursementlodgedbyaparticipantshall
besupportedbythenecessaryinformationinordertoenableaproperassessmentthereof,including:
(i) name,addressandstatusoftheparticipant(i.e.whether
ornottheparticipant isacounterpartyforEurosystemmonetarypolicyoperations);
(ii) time, place and other circumstances surrounding the
submission of the relevant payment order to an NCB/ECBorsystemoperatororoftherelevanttransmissionthrough►
C1TARGET ◄;
(iii) name and address of the counterparty (receiving parti-
cipantincasetheclaimantisasendingparticipantand
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 for
participants in national RTGS systems of participatingMember States that are not monetary policy counter-parties) and evidence that such recourse to thestanding facility took place due to the malfunctioningof►
C1TARGET ◄;
(v) ifapplicable,theamountofanynon-remuneratedfunds
on a current account holding which remained with anNCB/ECB owing to the closure of the deposit facilityand a confirmation that the reserve requirements havealreadybeenfulfilled;
(vi) if applicable, the amount of funds blocked in the
►
C1TARGET ◄systemandreturnedtothepartici-
pantonalatervaluedate;
(vii) theamountandcalculationoftheclaimmadeforreim-
bursementbytheparticipant.
(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,then the claimant will be required by the NCB of the
national RTGS systemwhere the claim ant is a participant
to provide the additional information needed within a timeframeoftwoweeks.
(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
malfunctioningoccurred.
(d) TheNCB/ECBofthemalfunctioningnationalRTGSsystem
shallbethemanagerofthereimbursementprocedureandall2001O0401—EN—22.03.2002—001.001—13
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claimsreceivedbyotherNCBs/ECBwillbetransmittedtoit
forassessment.
(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 the
ECB in close cooperation with the NCB of the malfunc-
tioningnationalRTGSsystem.
(f) TheNCB/ECBofthemalfunctioningnationalRTGSsystem
shallcommunicatetheoutcomeoftheassessmentinrespect
of each claimto the participants concerned and the otherNCB/ECB involved promptly and no later than 18 weeksafter the malfunctioning, unless the Governing Council ofthe ECB decides otherwise and such decision is communi-
catedtotheparticipantsconcerned.
(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 totheparticipantsconcerned.
(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 no
interest payable on the amount of reimbursement under the
schemeinrespectofthetimeperiodbetweentheoccurrenceof the case of malfunctioning and the actual payment ofreimbursementtotheparticipant.
Article 4
Interlinkingprovisions
TheprovisionsofthisArticleshallapplytothearrangementsforcross-
border payments effected or to be effected through interlinking. Otherprovisions of this Guideline shall apply to such cross-border arrange-mentstotheextentthatsuchprovisionsareofrelevancetothem.
(a)Descriptionofinterlinking
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
complywiththetechnical provisionsandspecifications, whichare
available on the ECB's website (www.ecb.int) and updated fromtimetotime.
(b)Opening and operation of inter-NCB accounts held at
theNCBsandtheECB
1. The ECB and each of the NCBs shall open an inter-NCB
account on their booksfor each of the other NCBsand for the
ECB. In support of entries made on any inter-NCB account,each NCB and the ECB shall grant one another an unlimitedanduncollateralisedcreditfacility.
2. To effect a cross-border payment, the sending NCB/ECB shall
credit the inter-NCB account of the receiving NCB/ECB held
at the sending NCB/ECB; the receiving NCB/ECB shall debit
the inter-NCB account of the sending NCB/ECB held at thereceivingNCB/ECB.
3. Allinter-NCBaccountsshallbemaintainedintheeurounit.
(c)ObligationsofthesendingNCB/ECB
1. Verification
The sending NCB/ECB shall without delay check all details
contained in the payment order which are necessary in orderforthepaymenttobeexecuted,inaccordancewiththetechnical2001O0401—EN—22.03.2002—001.001—14
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provisions and specifications referred to in Article 4(a). If
syntacticalerrorsorothergroundsforrejectingapaymentorderare detected by the sending NCB/ECB, the latter shall handle
the data and the payment order in accordance with the RTGS
rules of its national RTGS system. Each payment passingthrough interlinking shall have a unique identifier to facilitatemessageidentificationanderrorhandling.
2. Settlement
AssoonasthesendingNCB/ECBhascheckedthevalidityofa
paymentorderasreferredtoinArticle4(c)(1),andprovidedthatfundsoroverdraftfacilitiesareavailable,thesendingNCB/ECBshallwithoutdelay:
(a) debit the amount of the payment order from the RTGS
accountofthesendingparticipant;and
(b) credittheinter-NCBaccountofthereceivingNCB/ECB,as
maintainedonthebooksofthesendingNCB/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 the
point in time at which blocking takes place as referred to in
Article3(e)(3).
ForthepurposesofthisGuideline,andwithoutprejudicetothe
provisionsregardingirrevocability referredtoinArticle3(e)(3),a payment shall become final (as defined in Article 1 of thisGuideline) in relation to the sending participant concerned at
thesettlementtime.
(d)ObligationsofthereceivingNCB/ECB
1. Verification
The receiving NCB/ECB shall check without delay all details
contained in the payment order which are necessary for theappropriatecreditentrytobemadetotheRTGSaccountofthereceiving participant (including the uniqueidentifier inordertoavoid double crediting). The receiving NCB/ECB shall not
processanypaymentorders,whichitknowstohavebeenmade
inerrorormorethanonce.ItshallnotifythesendingNCB/ECBofanysuchpaymentordersandanypaymentsreceivedpursuantthereto (and shall return any such payments received withoutdelay).
2. Settlement
Assoonasthereceiving NCB/ECBhascheckedthevalidityof
a payment order as referred to in Article 4(d)(1), the receivingNCB/ECBshallwithoutdelay:
(a) debit the amount of the payment order to the inter-NCB
accountofthesendingNCB/ECBonitsbooks;
(b) credittheamountofthepaymentordertotheRTGSaccount
ofthereceivingparticipant;and
(c) deliver a positive acknowledgement to the sending NCB/
ECB.
ForthepurposesofthisGuideline,andwithoutprejudicetothe
provisionsregardingirrevocability referredtoinArticle3(e)(3),
a payment shall become final (as defined by Article 1 of thisGuideline) in relation to the receiving participant concerned atthe moment at which its RTGS account referred to in (b) iscredited.
(e)Transferofresponsibilityforpaymentorders
Responsibility for the execution of a payment order shall pass to
thereceivingNCB/ECBuponreceiptbythesendingNCB/ECBofapositiveacknowledgementfromthereceivingNCB/ECB.2001O0401—EN—22.03.2002—001.001—15
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(f)Regimeforerrors
1. Errorhandlingprocedures
Each NCB shall comply with, and ensure that its respective
national RTGSsystemcom plies with,theerror handlingproce-duresadoptedbytheGoverningCounciloftheECB.TheECBshallensurethesamefortheECBpaymentmechanism.
2. Additionalcontingencymeasures
EachNCBshallensurethatitsrespectivenationalRTGSsystem
andprocedurescomplywiththeuserrequirementsfortheaddi-
tionalcontingencymeasures,referredtoinArticle4(a),andtheterms and conditions and the procedures adopted by theGoverning Council of the ECB. The ECB shall ensure thesamefortheECBpaymentmechanism.
(g)Relationtonetworkserviceprovider
1. All NCBs and the ECB shall be connected or have an entry
pointtothenetworkserviceprovider.
2. Asbetweenthemselves,neitherNCBsnortheECBshallassume
anyliabilitytoeachotherforanyfailureofthenetworkserviceprovider. It shall be the responsibility of the NCB/ECB whichhas suffered the lossto claimcom pensation, if any, against thenetworkservice provider, wherebysuchanNCBshall make itsclaimthroughtheECB.
Article 5
Security provisions
Each NCB shall comply with, and shall ensure that its respective
national RTGS systemcom plies with, the provisions of the securitystrategy and security requirements for ►
C1TARGET ◄. The ECB
shallalsoensurethesamefortheECBpaymentmechanism.
Article 6
Auditrules
TheinternalauditorsoftheECBandtheNCBsshallassesscompliance
with the functional, technical and organisational features, including
security provisions, as specified for the relevant ►C1TARGET ◄
componentsandarrangementsreferredtointhisGuideline.
Article 7
Managementof ►C1 TARGET ◄
1. The direction, management and control of ►C1TARGET ◄
shall fall within the competence of the Governing Council of theECB. 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 ◄orbeconnectedto ►C1TARGET ◄.
2. The Governing Council of the ECB is assisted by the Payment
andSettlement SystemsCommittee (the‘PSSC’)inall mattersrelatedto the►
C1TARGET ◄system. For such purposes, the PSSC shall
set up a subgroup composed of NCB representatives for the national
RTGSsystems.
3. The daily management of ►C1TARGET ◄shall be entrusted
totheECB ►C1TARGET ◄CoordinatorandtotheNCBsettlement
managers:
— eachNCBandtheECBshallappointasettlement managerforthe
administration and monitoring of its respective national RTGS
systemor,inthecaseoftheECB,theECBpaymentmechanism,
— 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 abnormalsituationsanderrors,and2001O0401—EN—22.03.2002—001.001—16
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— theECBshallappointtheECB ►C1TARGET ◄Coordinatoras
thedailymanagerofthecentralfunctionsof ►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 performthe obligations in question under the
Guideline, or such obligations are subject to suspension or delay,owingtotheoccurrenceofanyeventarisingfromanyreasonorcausebeyond reasonable control (including, but not limited to, equipmentfailure or malfunction, acts of God,natural disasters, strikes or labourdisputes);providedthattheaboveshallnotprejudicetheresponsibility
to have in place the back-up facilities required by this Guideline, to
carry out the errorhandling procedures, referred to in Article 4(f), asfar as possible despite the force majeure event, and to use all reason-
ableeffortstomitigate theeffectsofanysucheventwhileitistakingplace.
Article 9
Disputeresolution
1. WithoutprejudicetotherightsandprerogativesoftheGoverning
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 andreferredforconciliationtothePSSCreferredtoinArticle7(2).
2. IntheeventofsuchadisputebetweenNCBs,orbetweenanNCB
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-borderpaymentsthroughinterlinking,bythelawsoftheMemberStateoftheseatofthereceivingNCB/ECB.
Article 10
Finalprovisions
This Guideline is addressed to the national central banks of partici-
patingMemberStates.
ThisGuidelineshallenterintoforceon7June2001.
Fromthatdate,GuidelineECB/2000/9shallberepealedandreplaced.
This Guideline shall be published in the Official Journal of the
European Communities .2001O0401—EN—22.03.2002—001.001—17
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ANNEX I
NATIONALRTGSSYSTEMS
Member State Nameofsystem Settlementagent Location
Belgium ElectronicLarge-valueInterbank
Paymentsystem(ELLIPS)BanqueNationalede
Belgique/Nationale
BankvanBelgiëBrussels
Germany EuroLinkSystem(ELS) DeutscheBundesbank Frankfurt
Greece HellenicReal-timeMoney
TransferExpresssystem
(HERMES)BankofGreece Athens
Spain ServiciosdeLiquidacióndel
BancodeEspaña(SLBE)BancodeEspaña Madrid
France TransfertsBanquedeFrance
(TBF)BanquedeFrance Paris
Ireland IrishReal-timeInterbankSettle-
mentsystem(IRIS)CentralBankofIreland Dublin
Italy ►C1Sistemadiregolamento
lordoBI-REL ◄Bancad'Italia Rome
Luxembourg LuxembourgInterbankPayment
systems(LIPS-Gross)Banquecentraledu
LuxembourgLuxembourg
TheNether-
landsTOP DeNederlandscheBank Amsterdam
Austria AustrianReal-timeInterbank
Settlementsystem(ARTIS)OesterreichischeNatio-
nalbankVienna
Portugal SistemadePagamentosde
GrandesTransacções(SPGT)BancodePortugal Lisbon
Finland BankofFinland(BoF) SuomenPankki Helsinki2001O0401—EN—22.03.2002—001.001—18
▼C1
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ANNEX II
DOMESTICPAYMENTFEES
ThepriceofdomesticRTGStransfersineurowillcontinuetobedeterminedat
thenationallevel,withreferencetotheprinciplesofcostrecovery,transparency
and non-discrimination and taking into account the fact that the price for
domesticandcross-bordertransfersineuroshouldbebroadlyinthesamerange
soasnottoaffectthesinglenessofthemoneymarket.
NationalRTGSsystemsshalldisclosetheirfeestructuretotheECB,toallother
participatingNCBs,toparticipantsinnationalRTGSsystems,andtootherinter-
estedparties.
MethodologiestodeterminethecostsofnationalRTGSsystemswillbeharmo-
nisedtoanadequatelevel.2001O0401—EN—22.03.2002—001.001—19
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ANNEX III
CROSS-BORDERPAYMENTFEES
The fee (excluding VAT) to be charged for cross-border payments through
►C1TARGET ◄betweendirectparticipantswillbebasedonthenumberof
transactions sent by a participant within a single RTGSsystem, according to a
degressivescale.
Thedegressivescaleisasfollows:
— EUR1,75foreachofthefirst100transactionspermonth,
— EUR1,00foreachofthenext900transactionspermonth,— EUR0,80foreachsubsequenttransactioninexcessof1000permonth.
Forthepurposeoftheapplication ofthedegressivetariff,thepaymentvolume
to be considered is the number of transactions entered into by a same legal
entity within a single RTGS systemor the paym ent transactions entered by
differententitiesforexecutionthroughthesamesettlementaccount.
Theapplicationoftheabovetariffschemewillbereviewedfromtimetotime.
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
onitsownbehalf.
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/ECBonthebooksofthesendingNCB/ECB,thesendingofthepayment
settlmentmessagerequest(PSMR)viatheinterlinking network,thedebitingof
theinter-NCBaccount ofthesendingNCB/ECBonthebooksofthereceiving
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
confirmationofsettlement(ifapplicable).
The cross-border ►
C1TARGET ◄fee structure does not cover the costs of
thetelecommunications linkbetweenthesenderandthenationalRTGSsystem
in which the sender is a participant. The fee for this telecommunications link
willcontinuetobepaidaccordingtothedomesticrules.
National RTGS systems may not charge any fee for the conversion of transfer
ordersfromnationalcurrencyunitsintoeurounitsorviceversa.
RTGSsystems may charge extra fees for additional services they may provide
(e.g.theenteringofpaper-basedpaymentinstructions).
Thepossibilityofapplyingdifferent feesaccording tothetime ofexecution of
the payment instructions will be considered on the basis of experience gained
duringtheoperationofthesystem.2001O0401—EN—22.03.2002—001.001—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
respecttothetimeofoperation.
1. Thereferencetimefor ►C1TARGET ◄shallbe‘EuropeanCentralBank
time’,definedasthelocaltimeattheseatoftheECB.
2.►C1TARGET ◄willhavecommonoperatinghoursfrom07.00to18.00.
3. Earlyopening,before07.00,maytakeplaceafterpriornotificationhasbeen
senttotheECB:
(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
NCBsintoRTGSsystemsduringthenight);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
Asiancurrencies).
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
paymentsaredefinedaspaymentmessagesintheMT100format,orequiva-
lentnationalmessageformat(whichwouldusetheMT100formatforcross-
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
customerpaymentsthatwereinaqueueat17.00.2001O0401—EN—22.03.2002—001.001—21
▼M1
ANNEX V
LISTOF‘OUT’COLLATERAL
whichcanbeusedtocollateraliseintra-daycreditforeachNCBofaparticipatingMemberStatethat
hasdeclareditsintentiontousecertaincollaterallocatedinthecountryofanationalcentralbankofa
Member State which has not adopted the euro and whose intention has been approved by the ECB
pursuanttoArticle3(f)(3)andArticle3(g)oftheTARGETGuideline:
ParticipatingNCB Approveduseof‘out’collateral
DEUTSCHEBUNDESBANK — Danish government and mortgage credit bonds and
bonds issued by Danmarks Skibskreditfond and
KommuneKredit(1)
— Swedishgovernment debt instruments and mortgage
institutions'bonds
— UnitedKingdomgovernmentgilt-edgedsecurities— UnitedKingdomTreasurybills
BANCODEESPAÑA — UnitedKingdomgilt-edgedsecurities
— UnitedKingdomTreasurybills
BANQUEDEFRANCE — Dansih government and mortgage credit bonds and
bonds issued by Danmarks Skibskreditfond and
KommuneKredit(
2)
— Swedishgovernment debt instruments and mortgage
institutions'bonds
— UnitedKingdomgovernmentgilt-edgedsecurities— UnitedKingdomTreasurybills
CENTRALBANKOFIRELAND — UnitedKingdomgilt-edgedsecurities
— UnitedKingdomTreasurybills
BANQUECENTRALEDULUXEM-
BOURG— Danishgovernmentandmortgagecreditbonds
DENEDERLANDSCHEBANK — Danish government and mortgage credit bonds and
bonds issued by Danmarks Skibskreditfond and
KommuneKredit(
3)
— Swedishgovernment debt instruments and mortgage
institutions'bonds
SUOMENPANKKI — Danishgovernmentandmortgagecreditbonds
— Swedish governement debt instruments and mort-
gageinstitutions'bonds
— UnitedKingdomgovernmentgilt-edgedsecurities— UnitedKingdomTreasurybills
(1) Excludingbondslinkedtoreferencesotherthaninterestratesand/orhavingoptioncharacteristics,butincluding
bondslinkedtoinflation.
(2) Excludingbondslinkedtoreferencesotherthaninterestratesand/orhavingoptioncharacteristics,butincluding
bondslinkedtoinflation.
(3) Excludingbondslinkedtoreferencesotherthaninterestratesand/orhavingoptioncharacteristics,butincluding
bondslinkedtoinflation.2001O0401—EN—22.03.2002—001.001—22