2004/546/EC: Guideline of the European Central Bank of 1 July 2004 on the Eurosystem’s provision of reserve management services in euro to non-European Union central banks, countries outside the European Union and international organisations (ECB/2004/13)
Date: 2004-07-01
Institutions: European Central Bank
Subjects: European Central Bank, central bank, foreign-exchange reserves, international organisation, third country

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Official Journal of the European Union

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EUROPEAN CENTRAL BANK

GUIDELINE OF THE EUROPEAN CENTRAL BANK

of 1 July 2004
on the Eurosystem’s provision of reserve management services in euro to non-European Union
central banks, countries outside the European Union and international organisations

(ECB/2004/13)

(2004/546/EC)

THE GOVERNING COUNCIL OF THE EUROPEAN CENTRAL BANK,

are of a confidential nature and are subject to Article 38
of the Statute.

Having regard to the Statute of the European System of Central
Banks and of the European Central Bank, and in particular
Article 12.1, Article 14.3 and Article 23 thereof,

(4)

In accordance with Article 12.1 and Article 14.3 of the
Statute, ECB guidelines
form an integral part of
Community law,

Whereas:

(1)

(2)

Pursuant to Article 23 in conjunction with Article 43.4
of the Statute, the European Central Bank (ECB) and the
national central banks of the Member States that have
adopted the euro (hereinafter the ‘participating NCBs’)
may establish relations with central banks
in other
countries and, where appropriate, with international
organisations, and conduct all types of banking trans-
actions in their relations with third countries and inter-
national organisations.

The Governing Council considers that the Eurosystem
should act as a single system when providing Eurosystem
reserve management services to such customers,
irre-
spective of
through which
the Eurosystem member
such services are provided. To this end, the Governing
Council considers it necessary to adopt this Guideline to
ensure,
inter alia, that Eurosystem reserve management
services are provided on a standardised basis under
harmonised terms and conditions, that the ECB receives
adequate information regarding these services, and that
minimum common features
required in contractual
arrangements with customers are identified.

(3)

The Governing Council considers it necessary to confirm
that all information, data and documents drafted by and/
or exchanged between Eurosystem members
in the
context of the Eurosystem reserve management services

HAS ADOPTED THIS GUIDELINE:

Article 1

Definitions

For the purposes of this Guideline:

— ‘all types of banking transactions’ shall include the provision
of Eurosystem reserve management services to central banks
to third countries themselves and to
in third countries,
organisations
international
the
management of
such central banks,
the
countries and international organisations,

connection with

reserves of

in

— ‘authorised ECB personnel’ shall mean such persons at the
ECB as shall be identified by the Executive Board, from time
to time, as the authorised senders and recipients of the
information to be provided within the framework of the
Eurosystem reserve management services,

— ‘central banks’ shall include monetary authorities,

— ‘customer’ shall mean any non-European Union (non-EU)
country (including any public authority or government
agency), any non-EU central bank or monetary authority,
or any international organisation to which Eurosystem
reserve management services are provided by a Eurosystem
member,

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— ‘Eurosystem reserve management services’ shall mean the
reserve management services listed in Article 2 that may
be provided by Eurosystem members to customers and
that allow customers to comprehensively manage their
reserves through a single Eurosystem member,

— ‘Eurosystem service provider’ (ESP) shall mean a Eurosystem
member which undertakes to provide the complete set of
Eurosystem reserve management services,

(c) notification of corporate actions (e.g. coupon payments
in relation to customers’ securities

and redemptions)
holdings;

(d) processing corporate actions on behalf of customers;

(e)

facilitating arrangements between customers and third
in connection
party agents, under certain restrictions,
lending
with the operation of automatic securities
programmes.

— ‘individual service provider’ (ISP) shall mean a Eurosystem
member which does not undertake to provide the complete
set of Eurosystem reserve management services,

3. Settlement services:

— ‘international organisation’ shall mean any organisation,
other than Community institutions and bodies, established
by or under the authority of an international treaty,

— ‘reserves’

customer’s

the

eligible

shall mean

‘issuer group 3’ and,

euro-
denominated assets,
i.e. cash and all securities that are
eligible as ‘tier one assets’ of the Eurosystem eligible assets
database, as published and updated daily on the ECB’s
website, with the exception of both the securities falling
under
the remaining issuer
groups, the securities falling under ‘liquidity category IV’.
For the purpose of this Guideline, reserves do not include
either assets exclusively held for the purpose of meeting the
pension and related obligations of the customer vis-à-vis its
former or existing staff or dedicated accounts opened with a
Eurosystem member by a customer for public debt resche-
duling purposes within the framework of
international
agreements,

for

(a)

free of payment/delivery versus payment
settlement
services for all euro-denominated securities for which
custody accounts are provided;

(b) confirmation of settlement of all operations via SWIFT
for non-SWIFT

appropriate

as

(or other means
customers).

4. Cash/investment services:

(a) purchase/sale of

accounts on a principal basis,
purchase/sale of
currencies as a minimum;

foreign exchange

customers’
spot
euro against non-euro area G10

for
covering the

(b) fixed-term deposit services on an agency basis;

(c) overnight credit balances:

— ‘third countries’ shall mean countries outside the EU.

— balance amounts of EUR 100 000 below which no

remuneration will be offered,

Article 2

List of Eurosystem reserve management services

Eurosystem reserve management services shall consist of the
following:

— Tier 1 – automatic investment of a limited fixed

amount per customer on a principal basis,

— Tier 2 – possibility of investing funds with market

participants on an agency basis;

1. Custody (safe keeping) accounts for the reserves.

2. Custodian (safe keeping) services:

(a) end-of-month custody statements, with the possibility of
also providing statements at other dates at the customer’s
request;

(b) transmission of statements via SWIFT to all customers
capable of receiving statements via SWIFT, and via other
means as appropriate for non-SWIFT customers;

(d) execution of

investments for customers according to
their standing instructions and in accordance with the
set of Eurosystem services;

(e) execution of customers’ orders for securities purchases/

sales in the secondary market.

Article 3

Provision of services by ESPs and ISPs

1. Within the
Eurosystem reserve
management services, a distinction is made between Eurosystem
members as being either an ESP or an ISP.

framework of

the

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In addition to the services indicated in Article 2 each ESP
2.
may also offer other reserve management services to customers.
An ESP shall determine such services on an individual basis and
such services shall not be subject to this Guideline.

member shall promptly notify the authorised ECB personnel
thereof. The authorised ECB personnel shall promptly inform
the other Eurosystem members thereof. Any such measure or
decision shall not prevent the other Eurosystem members from
providing Eurosystem reserve management services to such
customers.

An ISP shall be subject

3.
to this Guideline and the
requirements of the Eurosystem reserve management services
regards one or more Eurosystem reserve management
as
services, or part of such service, which such an ISP provides
and which form(s) part of the complete set of the Eurosystem
reserve management services. Furthermore, each ISP may also
offer other reserve management services to customers and shall
determine such services on an individual basis. Such services
shall not be subject to this Guideline.

Article 4

Information regarding the provision of Eurosystem reserve
management services

1.
Eurosystem members shall provide the authorised ECB
personnel with any relevant information on the provision of
Eurosystem reserve management services to new and existing
customers and inform the authorised ECB personnel when a
potential customer approaches them.

Before Eurosystem members disclose the identity of an
2.
existing, new or potential customer, they shall endeavour to
obtain the customer’s consent to the disclosure.

Article 4(2) and (3) shall apply to any disclosure of the
3.
identity of an existing or potential customer made pursuant to
paragraph 2.

Article 6

Responsibility for the provision of Eurosystem reserve
management services

1.
Each Eurosystem member shall be responsible for the
execution of any contractual arrangements with its customers
that it considers appropriate for the provision of Eurosystem
reserve management services.

2.
Subject to any specific provisions applicable to, or agreed
upon by a Eurosystem member, each Eurosystem member that
provides Eurosystem reserve management services or any part
thereof to its customers, shall be liable for any such services
that it provides.

Article 7

Additional minimum common features

in contractual

arrangements with customers

If consent

is not obtained,

3.
the Eurosystem member
concerned shall provide the authorised ECB personnel with
the required information without revealing the identity of the
customer.

Article 5

Prohibition and suspension of the provision of Eurosystem
reserve management services

1.
The ECB will maintain for consultation by the Eurosystem
members a list of existing or potential customers whose reserves
are affected by a freezing order or similar measure imposed
either by one of the EU Member States on the basis of a
United Nations
the
European Union.

resolution or by

Security Council

2.
If on the basis of a measure or decision, other than those
referred to in paragraph 1, adopted for national policy or
national
interest reasons by a Eurosystem member or by the
Member State in which the Eurosystem member is located, the
Eurosystem member suspends the provision of Eurosystem
to an existing customer or
reserve management
this
refuses to provide such services to a new customer,

services

shall

ensure

Eurosystem members
contractual
arrangements with customers are, as of 1 January 2005,
consistent with this Guideline and with the following additional
minimum common features. The contractual arrangements
shall:

their

that

(a) state that the counterparty of the customer is the Euro-
system member with whom that customer has concluded
an arrangement for the provision of the Eurosystem reserve
management services or any part thereof, and that such
arrangement does not in itself create customer rights or
entitlements vis-à-vis any other Eurosystem members. This
provision does not prevent a customer from having an
arrangement with several Eurosystem members;

(b) refer to the links that may be used for the settlement of
securities held by customers’ counterparties and the relevant
risks of using links not eligible for monetary policy
operations;

(c) refer

to the fact

that certain transactions within the
framework of the Eurosystem reserve management services
shall be carried out on a best effort basis;

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(d) refer to the fact that the Eurosystem member may make
suggestions to customers as to the timing and execution of
a transaction to avoid conflicts with the Eurosystem’s
monetary
such
member shall not be liable for any consequences that
such suggestions may have for the customer;

and exchange

rate policy,

and that

(e) refer to the fact that the fees that Eurosystem members
charge to their customers for the provision of Eurosystem
reserve management services are subject to reviews by the
Eurosystem and that the customers shall, in accordance with
applicable law, be bound by the fee revisions that might
result from such reviews.

Article 8

Article 9

Entry into force

This Guideline shall enter into force on 5 July 2004.

It shall apply from 1 January 2005.

Article 10

Addressees

This Guideline is addressed to the participating NCBs.

Role of the ECB in the provision of Eurosystem reserve
management services

Done at Frankfurt am Main, 1 July 2004.

The ECB will coordinate the general provision of Eurosystem
services and the related information
reserve management
framework. Any Eurosystem member that becomes an ESP or
that terminates its status as an ESP shall inform the ECB thereof.

For the Governing Council of the ECB
The President of the ECB

Jean-Claude TRICHET