1.

Annex II is amended as follows: (a) in Article 1, the definition of Contingency Module is deleted; (b) in Article 1, the definition of ‘Information and Control Module (ICM)’ is replaced by the following: — ‘“Information and Control Module (ICM)” means the SSP module that allows PM account holders to obtain online information and gives them the possibility to submit liquidity transfer orders, manage liquidity and, if applicable, initiate backup payment orders or payment orders to the Contingency Solution in a contingency,’; (c) in Article 1, the following definition is added: — ‘“Contingency Solution” means the SSP functionality that processes very critical and critical payments in contingency,’; (d) in Article 4(2), point (a) is replaced by the following: ‘(a) treasury departments of central or regional governments of Member States;’; (e) in Article 4(2), point (c) is replaced by the following: ‘(c) (i) investment firms established in the Union or the EEA, including when they act through a branch established in the Union or the EEA; and (ii) investment firms established outside the EEA, provided that they act through a branch established in the Union or the EEA;’; (f) in Article 8(1)(b), point (ii) is replaced by the following: ‘(ii) for the entities referred to in Article 4(1)(b) and in Article 4(2)(c)(ii), provide a country opinion in the form specified in Appendix III, unless the information and representations to be provided in such country opinion have already been obtained by the [insert name of CB] in another context.’; (g) Article 11(9) is replaced by the following: ‘9. Participants shall immediately inform the [insert name of CB] if an event of default occurs in relation to themselves or if they are subject to crisis prevention measures or crisis management measures within the meaning of Directive 2014/59/EU of the European Parliament and of the Council (1) or any other equivalent applicable legislation.’; (h) Article 27 is replaced by the following: ‘Article 27 Business continuity and contingency procedures 1. In the event of an abnormal external event or any other event which affects the operation of the SSP, the business continuity and contingency procedures described in Appendix IV shall apply. 2. The Eurosystem provides a Contingency Solution if the events described in paragraph 1 occur. Connection to and use of the Contingency Solution shall be mandatory for participants considered by the [insert name of CB] to be critical. Other participants may, on request, connect to the Contingency Solution.’; (i) Article 28 is amended as follows: (i) paragraph 3 is replaced by the following: ‘3. The [insert name of CB] may impose additional security requirements, in particular with regard to cybersecurity or the prevention of fraud, on all participants and/or on participants that are considered critical by the [insert name of CB].’; (ii) the following paragraphs 4 and 5 are added: ‘4. Participants shall provide the [insert name of CB] with their TARGET2 self-certification and their attestation of adherence to the TARGET2 network service provider’s endpoint security requirements. In the event of non-adherence to the latter, participants shall provide a document describing alternative mitigating measures to the satisfaction of the [insert name of CB]. 5. Participants allowing access to their PM account by third parties as set out in Article 5(2), (3) and (4) shall address the risk stemming from allowing such access in accordance with the security requirements set out in paragraphs 1 to 4. The self-certification referred to in paragraph (4) shall specify that the participant imposes the TARGET2 network service provider’s endpoint security requirements on third parties who have access to that participant’s PM account.’; (j) in Article 29(1), point (c) is replaced by the following: ‘(c) allows participants to initiate backup liquidity redistribution and backup contingency payments or payment orders to the Contingency Solution in the event of a failure of the participant’s payment infrastructure.’; (k) in Article 38(2), in the first sentence, point (c) is replaced by the following: ‘(c) supervisory, resolution 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.’; (l) in Appendix I, the fifth line of the table in point 2(1) is replaced by the following: ‘MT 202COV Mandatory Cover payment’; (m) in Appendix III, under the heading ‘Terms of reference for country opinions for non-EEA participants in TARGET2’, paragraph 3.2 is replaced by the following: ‘3.2. General insolvency and crisis management issues 3.2.a. Types of insolvency and crisis management proceedings The only types of insolvency proceedings (including composition or rehabilitation) which, for the purpose of this Opinion, shall include all proceedings in respect of the Participant’s assets or any branch it may have in [jurisdiction] to which the Participant may become subject in [jurisdiction], are the following: [list proceedings in original language and English translation] (together collectively referred to as ‘Insolvency Proceedings’). In addition to Insolvency Proceedings, the Participant, any of its assets, or any branch it may have in [jurisdiction] may become subject in [jurisdiction] to [list any applicable moratorium, receivership, or any other proceedings as a result of which payments to and/or from the Participant may be suspended, or limitations can be imposed in relation to such payments, or similar proceedings, including crisis prevention and crisis management measures equivalent to those defined in Directive 2014/59/EU, in original language and English translation] (hereinafter collectively referred to as ‘Proceedings’). 3.2.b. Insolvency treaties [jurisdiction] or certain political subdivisions within [jurisdiction], as specified, is/are party to the following insolvency treaties: [specify, if applicable which have or may have an impact on this Opinion].’; (n) in Appendix IV, paragraph 6 is amended as follows: (i) points (a) and (b) are replaced by the following: ‘(a) If [insert name of CB] deems it necessary to do so, it shall initiate the contingency processing of payment orders using the Contingency Solution of the SSP. In such cases, only a minimum service level shall be provided to participants and ancillary systems. The [insert name of CB] shall inform its participants and ancillary systems of the start of contingency processing by any available means of communication. (b) In contingency processing, payment orders shall be submitted by the participants and authorised by the [insert name of CB]. In addition, the ancillary systems may submit files containing payment instructions, which may be uploaded into the Contingency Solution by [insert name of CB].’; (ii) points (d) and (e) are replaced by the following: ‘(d) Payments required to avoid systemic risk shall be considered as ‘critical’ and the [insert name of CB] may decide to initiate contingency processing in relation to them. (e) Participants shall submit payment orders for contingency processing directly into the Contingency Solution and information to payees shall be provided through [insert communication means]. Ancillary systems shall submit files which contain payment instructions to [insert name of CB] for uploading into the Contingency Solution and which authorise [insert name of CB] to do so. [insert name of CB] may, exceptionally, also manually input payments on behalf of participants. Information concerning account balances and debit and credit entries may be obtained via the [insert name of CB].’; (o) in Appendix IV, point (a) of paragraph 7 is replaced by the following: ‘(a) In the event that a participant has a problem that prevents it from settling payments in TARGET2 it shall be its responsibility to resolve the problem. In particular, a participant may use in-house solutions or the ICM functionality, i.e. backup liquidity redistribution payments and backup contingency payments (e.g. CLS, EURO1).’; (p) in Appendix VI, the third and fourth lines of the table in point 13 are replaced by the following: ‘T2S DCA to T2S DCA liquidity transfer orders 14,1 euro cent per transfer Intra-balance movement (i.e. blocking, unblocking, reservation of liquidity etc.) 9,4 euro cent per transaction’;