(1)

Annex I is amended as follows: (a) in Annex I and the Appendices, the term ‘SSP-providing CBs’ is replaced by the term ‘SSP-providing NCBs’ and the term ‘network service provider’ is replaced by the term ‘TARGET2 network service provider’; (b) Article 1 is amended as follows: (i) the definition of ‘addressable BIC holder’ is replaced by the following: ‘“addressable BIC holder” means an entity which: (a) holds a Business Identifier Code (BIC); (b) is not recognised as an indirect participant in the PM; and (c) is a correspondent or customer of a PM account holder or a branch of a direct or indirect participant in the PM, and is able to submit payment orders to and receive payments from a TARGET2 component system via the PM account holder,’; (ii) the definition of ‘ancillary system’ is replaced by the following: ‘“ancillary system” means a system managed by an entity that is subject to supervision and/or oversight by a competent authority and complies with the oversight requirements for the location of infrastructures offering services in euro, as amended from time to time and published on the ECB's website (*1), in which payments and/or financial instruments are exchanged and/or cleared or recorded with (a) the monetary obligations settled in TARGET2 and/or (b) funds held in TARGET2, in accordance with Guideline ECB/2012/27 (*2) and a bilateral arrangement between the ancillary system and the relevant Eurosystem CB, (*1) The Eurosystem's current policy for the location of infrastructure is set out in the following statements, which are available on the ECB's website at www.ecb.europa.eu: (a) the policy statement on euro payment and settlement systems located outside the euro area of 3 November 1998; (b) the Eurosystem's policy line with regard to consolidation in central counterparty clearing of 27 September 2001; (c) the Eurosystem policy principles on the location and operation of infrastructures settling euro-denominated payment transactions of 19 July 2007; (d) the Eurosystem policy principles on the location and operation of infrastructures settling euro-denominated payment transactions: specification of “legally and operationally located in the euro area” of 20 November 2008; (e) the Eurosystem oversight policy framework, revised version of July 2016." (*2) Guideline ECB/2012/27 of the European Central Bank of 5 December 2012 on a Trans-European Automated Real-time Gross settlement Express Transfer system (TARGET2) (OJ L 30, 30.1.2013, p. 1).’;" (iii) the definition of ‘available liquidity’ is replaced by the following: ‘“available liquidity” means a credit balance on a participant's PM account and, if applicable, any intraday credit line granted by the relevant euro area NCB in relation to such account but not yet drawn upon, or, if applicable, decreased by the amount of any processed reservations of liquidity on the PM account,’; (iv) the definition of ‘business day’ is replaced by the following: ‘“business day” or “TARGET2 business day” means any day on which TARGET2 is open for the settlement of payment orders, as set out in Appendix V,’; (v) the definition of ‘Dedicated Cash Account’ is replaced by the following: ‘“T2S Dedicated Cash Account (T2S DCA)” means an account held by a T2S DCA holder, opened in TARGET2-ECB, and used for cash payments in relation to securities settlement in T2S,’; (vi) the definition of ‘event of default’ is amended as follows: — point (a) is replaced by the following: ‘(a) where the participant no longer meets the access criteria laid down in Article 4 or the requirements laid down in Article 6(1)(a);’, — point (g) is replaced by the following: ‘(g) where the participant's credit balance on its PM account, T2S DCA or TIPS DCA, or all or a substantial part of the participant's assets are subject to a freezing order, attachment, seizure or any other procedure that is intended to protect the public interest or the rights of the participant's creditors;’; (vii) in the definition of ‘Information and Control Module (ICM)’, the word ‘participants’ is replaced by the words ‘PM account holders’; (viii) the definition of ‘ICM broadcast message’ is replaced by the following: ‘“ICM broadcast message” means information made simultaneously available to all or a selected group of PM account holders via the ICM,’; (ix) the definition of ‘indirect participant’ is replaced by the following: ‘“indirect participant” means a credit institution established in the European Union or the European Economic Area (EEA), which has entered into an agreement with a PM account holder to submit payment orders and receive payments via such PM account holder's PM account, and which has been recognised by a TARGET2 component system as an indirect participant,’; (x) in the definition of ‘multi-addressee access’, the words ‘established in the EEA’ are replaced by the words ‘established in the Union or the EEA’; (xi) in the definition of ‘Main PM account’ the term ‘DCA’ is replaced by the term ‘T2S DCA’; (xii) the definition of ‘non-settled payment order’ is replaced by the following: ‘“non-settled payment order” means a payment order that is not settled on the same-business day as that on which it is accepted,’; (xiii) the definition of ‘participant’ is replaced by the following: ‘“participant” [or “direct participant”] means an entity that holds at least one PM account (PM account holder) and/or one T2S Dedicated Cash Account (T2S DCA holder) and/or one TIPS Dedicated Cash Account (TIPS DCA holder) with a Eurosystem CB,’; (xiv) the definition of ‘payment order’ is replaced by the following: ‘“payment order” means a credit transfer order, a liquidity transfer order, a direct debit instruction, a PM to T2S DCA liquidity transfer order or a PM to TIPS DCA liquidity transfer order,’; (xv) the definition of ‘PM to DCA liquidity transfer order’ is replaced by the following: ‘“PM to T2S DCA liquidity transfer order” means the instruction to transfer a specified amount of funds from a PM account to a T2S DCA,’; (xvi) in the definition of ‘technical malfunction of TARGET2’, the words ‘same-day processing of payments’ are replaced by the words ‘same business-day processing of payments’; (xvii) the following definitions are inserted: — ‘“TARGET2-Securities (T2S)” or “T2S Platform” means the set of hardware, software and other technical infrastructure components through which the Eurosystem provides the services to CSDs and Eurosystem CBs that allow core, neutral and borderless settlement of securities transactions on a delivery-versus-payment basis in central bank money,’, — ‘“TARGET Instant Payment Settlement (TIPS) service” means the settlement in central bank money of instant payment orders on the TIPS Platform,’, — ‘“TIPS Platform” means the single technical platform infrastructure provided by the TIPS Platform-providing NCBs,’, — ‘“TIPS Platform-providing NCBs” means the Deutsche Bundesbank, the Banco de España, the Banque de France and the Banca d'Italia in their capacity as the CBs building and operating the TIPS Platform for the Eurosystem's benefit,’, — ‘“TIPS network service provider” means an undertaking which has: (a) met all of the necessary conditions to connect to, and established a technical connection to, the TIPS Platform in accordance with the rules and procedures set out in Appendix V to Annex III to Decision ECB/2007/7; and (b) signed the TIPS connectivity hosting terms and conditions which are available on the ECB's website,’, — ‘“TIPS Dedicated Cash Account (TIPS DCA)” means an account held by a TIPS DCA holder, opened in TARGET2-ECB, and used for the provision of instant payment services to its customers,’, — ‘“Linked PM account” means the PM account with which a TIPS DCA is associated for the purpose of liquidity management and payment of TIPS fees,’, — ‘“instant payment order” means, in line with the European Payments Council's SEPA Instant Credit Transfer (SCT Inst) scheme, a payment instruction which can be executed 24 hours a day any calendar day of the year, with immediate or close to immediate processing and notification to the payer,’, — ‘“recall request” means, in line with the SCT Inst scheme, a message from a TIPS DCA holder requesting reimbursement of a settled instant payment order,’, — ‘“positive recall answer” means, in line with the SCT Inst scheme, a payment order initiated by the receiver of a recall request, in response to a recall request, for the benefit of the sender of that recall request,’, — ‘“PM to TIPS DCA liquidity transfer order” means the instruction to transfer a specified amount of funds from a PM account to a TIPS DCA,’, — ‘“TIPS DCA to PM liquidity transfer order” means the instruction to transfer a specified amount of funds from a TIPS DCA to a PM account,’; (c) Article 3 is replaced by the following: ‘Article 3 General description of TARGET2 1. TARGET2 provides real-time gross settlement for payments in euro, with settlement in central bank money across PM accounts, T2S DCAs for the purpose of securities transactions and TIPS DCAs for the purpose of instant payments. 2. The following transactions are processed in TARGET2-ECB: (a) transactions directly resulting from or made in connection with Eurosystem monetary policy operations; (b) settlement of the euro leg of foreign exchange operations involving the Eurosystem; (c) settlement of euro transfers resulting from transactions in cross-border large-value netting systems; (d) settlement of euro transfers resulting from transactions in euro retail payment systems of systemic importance; (e) settlement of the cash leg of securities transactions; (f) T2S DCA to T2S DCA liquidity transfer orders, T2S DCA to PM liquidity transfer orders and PM to T2S DCA liquidity transfer orders; (fa) instant payment orders; (fb) positive recall answers; (fc) TIPS DCA to PM liquidity transfer orders and PM to TIPS DCA liquidity transfer orders; and (g) any other transactions in euro addressed to TARGET2 participants. 3. TARGET2 provides real-time gross settlement for payments in euro, with settlement in central bank money across PM accounts, T2S DCAs and TIPS DCAs. TARGET2 is established and functions on the basis of the SSP through which payment orders are submitted and processed and through which payments are ultimately received in the same technical manner. As far as the technical operation of the T2S DCAs is concerned, TARGET2 is technically established and functions on the basis of the T2S Platform. As far as the technical operation of the TIPS DCAs is concerned, TARGET2 is technically established and functions on the basis of the TIPS Platform. 4. The ECB is the provider of services under these Conditions. Acts and omissions of the SSP-providing NCBs shall be considered acts and omissions of the ECB, for which it shall assume liability in accordance with Article 25 below. Participation pursuant to these Conditions shall not create a contractual relationship between PM account holders and the SSP-providing NCBs when any of the latter acts in that capacity. Instructions, messages or information which a PM account holder receives from, or sends to, the SSP in relation to the services provided under these Conditions are deemed to be received from, or sent to, the ECB. 5. TARGET2 is legally structured as a multiplicity of payment systems composed of all the TARGET2 component systems, which are designated as “systems” under the national laws implementing the Settlement Finality Directive. TARGET2-ECB is designated as a “system” under § 1(16) of the KWG. 6. Participation in TARGET2 takes effect via participation in a TARGET2 component system. These Conditions describe the mutual rights and obligations of PM account holders in TARGET2-ECB and the ECB. The rules on the processing of payment orders under these Conditions (Title IV and Appendix I) refer to all payment orders submitted or payments received by any PM account holder. 7. No intraday credit is provided to participants in TARGET2-ECB.’; (d) in Article 6(1)(a), the term ‘TARGET2-ECB’ is replaced by the words ‘the SSP’; (e) Article 9 is amended as follows: (i) in paragraph 3, the first sentence is replaced by the following: ‘Up-to-date information on the SSP's operational status shall be available on the TARGET2 Information System (T2IS) on a dedicated webpage on the ECB's website.’; (ii) the following paragraph 4a is inserted: ‘4a. The holder of the Linked PM account shall be responsible for informing in a timely manner its TIPS DCA holders of any relevant ICM broadcast message, including those related to the suspension or termination of any TIPS DCA holder's participation in TARGET2-ECB.’; (iii) paragraph 8 is replaced by the following: ‘8. Participants shall immediately inform the ECB if an event of default occurs in relation to themselves.’; (f) Article 10 is amended as follows: (i) paragraph 5 is replaced by the following: ‘5. A PM account holder accepting its PM account to be designated as the Main PM account shall be bound by any invoices related to the opening and operation of each T2S DCA linked to that PM account, as set out in Appendix VI to this Annex, including any penalties levied in accordance with paragraph 9(d) of Annex IIIa, regardless of the content of, or any non-compliance with, the contractual or other arrangements between that PM account holder and the T2S DCA holder.’; (ii) in paragraph 6, the term ‘DCA’ is replaced by the term ‘T2S DCA’; (iii) the following paragraphs 7 and 8 are added: ‘7. A PM account holder accepting its PM account to be designated as the Linked PM account shall be bound by any invoices related to the opening and operation of each TIPS DCA linked to that PM account, as set out in Appendix VI to this Annex, regardless of the content of, or any non-compliance with, the contractual or other arrangements between that PM account holder and the TIPS DCA holder. A Linked PM account may be linked to a maximum of 10 TIPS DCAs. 8. The holder of a Linked PM account shall have an overview of the liquidity available on the TIPS DCAs linked to that PM account and ensure the TIPS DCA holders are aware of their responsibility to manage that liquidity.’; (g) Article 11 is amended as follows: (i) points (c) and (d) are replaced by the following: ‘(c) liquidity transfer orders; (d) PM to T2S DCA liquidity transfer orders; and’; (ii) the following point (e) is added: ‘(e) PM to TIPS DCA liquidity transfer orders.’; (h) in Article 12, paragraph 3 is replaced by the following: ‘3. The SSP attaches its timestamp for the processing of payment orders in the sequence of their receipt.’; (i) in Article 13, paragraph 2 is replaced by the following: ‘2. Highly urgent payment orders may only be designated by: (a) CBs; and (b) participants, in cases of payments to and from CLS Bank International, with the exception of payments related to the CLS CCP service and, at the discretion of the Governing Council, the CLSNow service, and liquidity transfers in relation to ancillary system settlement using the ASI. All payment instructions submitted by an ancillary system through the ASI to debit or credit the participants' PM accounts and all PM to T2S DCA liquidity transfer orders and PM to TIPS DCA liquidity transfer orders submitted shall be deemed to be highly urgent payment orders.’; (j) in Article 23(1), point (b) is replaced by the following: ‘(b) may be used to initiate liquidity transfer orders, TIPS DCA to PM liquidity transfer orders, PM to TIPS DCA liquidity transfer orders, PM to T2S DCA liquidity transfer orders and, when the ICM is used in combination with the T2S value added services, T2S DCA to PM liquidity transfer orders; and’; (k) in Article 25, paragraph 5 is replaced by the following: ‘5. Notwithstanding Sections 675(u), 675(v), 675(x), 675(y), 675(z), 676(a), 676(c) of the German Civil Code (Bürgerliches Gesetzbuch), paragraphs 1 to 4 shall apply to the extent that the ECB's liability can be excluded.’; (l) Article 28 is amended as follows: (i) in paragraph 1, the second sentence is replaced by the following: ‘For the purposes of this paragraph, the taking of crisis prevention measures or crisis management measures within the meaning of Directive 2014/59/EU of the European Parliament and of the Council (*3) against a PM account holder shall not automatically qualify as the opening of insolvency proceedings. (*3) Directive 2014/59/EU of the European Parliament and of the Council of 15 May 2014 establishing a framework for the recovery and resolution of credit institutions and investment firms and amending Council Directive 82/891/EEC, and Directives 2001/24/EC, 2002/47/EC, 2004/25/EC, 2005/56/EC, 2007/36/EC, 2011/35/EU, 2012/30/EU and 2013/36/EU, and Regulations (EU) No 1093/2010 and (EU) No 648/2012, of the European Parliament and of the Council (OJ L 173, 12.6.2014, p. 190).’;" (ii) in paragraph 2, point (f) is replaced by the following: ‘(f) the ECB suspends, limits or terminates the participant's access to intraday credit pursuant to paragraph 12 of Annex III to Guideline ECB/2012/27.’; (iii) in paragraph 4(a), the words ‘DCA holders’ and ‘DCA holder’ are replaced by the words ‘T2S DCA holders’ and ‘T2S DCA holder’, respectively; (m) Article 32 is amended as follows: (i) the following paragraph 1a is inserted: ‘1a. By derogation from paragraph 1, the participant agrees that information on any action taken under Article 28 shall not be considered as confidential.’; (ii) paragraph 2 is replaced by the following: ‘2. By derogation from paragraph 1, the participant agrees that the ECB may disclose payment, technical or organisational information regarding the participant, participants from the same group or the participant's customers obtained in the course of the operation of TARGET2-ECB to: (a) other CBs or third parties that are involved in the operation of TARGET2-ECB, to the extent that this is necessary for the efficient functioning of TARGET2 or the monitoring of the participant's or its group's exposure; (b) other CBs in order to carry out the analyses necessary for market operations, monetary policy functions, financial stability or financial integration; or (c) supervisory and oversight authorities of Member States and the Union, including CBs, to the extent that this is necessary for the performance of their public tasks, and provided in all such cases that the disclosure is not in conflict with the applicable law. The ECB shall not be liable for the financial and commercial consequences of such disclosure.’ (n) in Article 33(3), point (a)(ii) is replaced by the following: ‘(ii) the participant shall not enter any payment order for the transfer of funds to an account held by an entity different than the participant, into TARGET2 until it has obtained confirmation from the ECB that the required notification has been made or the consent has been obtained by or on behalf of the payment service provider of the payee;’; (o) in Article 34, the second sentence is replaced by the following: ‘Notices to the ECB shall be submitted to the European Central Bank, Director-General of the ECB's Directorate-General Payment Systems and Market Infrastructure, Sonnemannstrasse 22, 60314 Frankfurt am Main, Germany or to the BIC address of the ECB: ECBFDEFF.’; (p) in Article 36, in the first and second sentences the words ‘including its Appendices’ are replaced by the words ‘including the Appendices’; (q) in Appendix I, paragraph 8 entitled ‘Use of the ICM’ is amended as follows: (i) points (8)(c) and (d) are replaced by the following: ‘(c) from the PM account to the technical account managed by the ancillary system using settlement procedure 6 real-time; (d) by means of a PM to T2S DCA liquidity transfer order or, when the ICM is used in combination with the T2S value added services, a T2S DCA to PM liquidity transfer order; and’; (ii) the following point (8)(e) is added: ‘(e) by means of a PM to TIPS DCA liquidity transfer order or a TIPS DCA to PM liquidity transfer order.’; (r) Appendix IV is amended as follows: (i) in paragraph 4 entitled ‘Relocation of the operation of the SSP to an alternative site’, in point (c) the term ‘PM to DCA liquidity transfer order’ is replaced by the term ‘PM to T2S DCA liquidity transfer order’; (ii) paragraph 6 entitled ‘Contingency processing’ is amended as follows: — point (c)(i) is replaced by the following: ‘(i) CLS Bank International-related payments, with the exception of payments related to the CLS CCP service and, at the discretion of the Governing Council, the CLSNow service;’, — point (d)(iii) is replaced by the following: ‘(iii) T2S DCA to PM liquidity transfer orders.’; (iii) in paragraph 8 entitled ‘Other provisions’, in point (b) the words ‘the SSP’ are replaced by the words ‘the operational team of the SSP’; (s) Appendix V is amended as follows: (i) the schedule is replaced by the following: ‘Time Description 6.45-7.00 Business window to prepare daytime operations (1) 7.00-18.00 Daytime processing 17.00 Cut-off time for customer payments, i.e. payments where the originator and/or the beneficiary of a payment is not a direct or indirect participant as identified in the system by the use of an MT 103 or MT 103+ message 18.00 Cut-off time for interbank payments, i.e. payments other than customer payments Cut-off time for liquidity transfers between TARGET2 and TIPS Shortly after 18.00 Completion of last algorithms in TARGET2 Upon completion of last algorithms TARGET2 sends message to TIPS to initiate change of business day in TIPS Shortly after completion of last algorithms End-of-day files (General Ledger) received from TIPS 18.00-18.45 (2) End-of-day processing 18.15 (2) General cut-off time for the use of standing facilities (Shortly after) 18.30 (3) Data for the update of accounting systems are available to CBs 18.45-19.30 (3) Start-of-day processing (new business day) 19.00 (3)-19.30 (2) Provision of liquidity on the PM account 19.30 (3) “Start-of-procedure”message and settlement of the standing orders to transfer liquidity from the PM accounts to the subaccounts/technical account (ancillary system-related settlement) Start of liquidity transfers between TARGET2 and TIPS 19.30 (3)-22.00 Execution of additional liquidity transfers via the ICM for settlement procedure 6 real time; execution of additional liquidity transfers via the ICM before the ancillary system sends the “start of cycle” messages for settlement procedure 6 interfaced; settlement period of night-time ancillary system operations (only for ancillary system settlement procedure 6 real-time and settlement procedure 6 interfaced) 22.00-1.00 Technical maintenance window 1.00-7.00 Settlement procedure of night-time ancillary system operations (only for ancillary system settlement procedure 6 real-time and settlement procedure 6 interfaced) Liquidity transfers between TARGET2 and TIPS (ii) the following paragraph 6 is added: ‘6. Up-to-date information on the SSP's operational status shall be available on the TARGET2 Information System (T2IS) on a dedicated webpage on the ECB's website. The information on the SSP's operational status on T2IS and the ECB's website shall only be updated during normal business hours.’; (t) Appendix VI is amended as follows: (i) in paragraph 1, the last sentence is replaced by the following: ‘PM to T2S DCA liquidity transfer orders or PM to TIPS DCA liquidity transfer orders sent from a participant's PM account and T2S DCA to PM liquidity transfer orders or TIPS DCA to PM liquidity transfer orders received on a participant's PM account shall be charged according to the pricing option (a) or (b) above chosen for that PM account.’; (ii) in paragraphs 4 and 5 and the table, the term ‘DCA’ is replaced by the term ‘T2S DCA’, (iii) in the table, the following field is inserted between the third (‘U2A queries’) and fourth (‘Messages bundled into a file’) fields under ‘Information services’: ‘U2A queries downloaded 0,7 Per queried business item in any U2A query generated and downloaded’ (iv) the following paragraphs 5a and 5b are inserted: ‘Fees for Linked PM account holders 5a. The holder of the Linked PM account shall be charged the following fees for the TIPS service connected with the TIPS DCAs linked to that PM account. Tariff items Price (euro cent) Explanation Settlement services Instant payment order 0,20 To be charged also for unsettled transactions Recall request 0,00 Negative recall answer 0,00 Positive recall answer 0,20 To be charged to the holder of the Linked PM account associated with the TIPS DCA to be credited (also for unsettled transactions) 5b. Up to the first ten million instant payment orders and positive recall answers, cumulatively, received by the TIPS Platform by the end of 2019, shall be free of charge. The ECB shall charge Linked PM account holders for any further instant payment orders and positive recall answers received by the TIPS Platform by the end of 2019, in the following year.’; (v) in paragraph 6, the last sentence is replaced by the following: ‘Payments shall be made no later than the 14th business day of that month to the account specified by the ECB or shall be debited from an account specified by the PM account holder.’; (vi) paragraph 7 is amended as follows: — in paragraph 7, the term ‘DCA’ is replaced by the term ‘T2S DCA’, — in point (b), the words ‘transactions settled on DCAs’ are replaced by the words ‘transactions settled on T2S DCAs and TIPS DCAs’, — in point (d), in the table the words ‘DCA to DCA liquidity transfer orders’ are replaced by the words ‘T2S DCA to T2S DCA liquidity transfer orders’, — the following point (d)(iv) is added: ‘(iv) the ancillary system as Linked PM account holder shall be charged the following fees for TIPS service connected with the linked TIPS DCA(s): Tariff items Price (euro cent) Explanation Settlement services Instant payment order 0,20 To be charged also for unsettled transactions Recall request 0,00 Negative recall answer 0,00 Positive recall answer 0,20 To be charged to the holder of the Linked PM account associated with the TIPS DCA to be credited (also for unsettled transactions) Up to the first ten million instant payment orders and positive recall answers, cumulatively, received by the TIPS Platform by the end of 2019, shall be free of charge. The ECB shall charge the ancillary system as Linked PM account holder for any further instant payment orders and positive recall answers received by the TIPS Platform by the end of 2019, in the following year.’;