Guideline of the European Central Bank of 11 March 2005 amending Guideline ECB/2000/1 on the management of the foreign reserve assets of the European Central Bank by the national central banks and the legal documentation for operations involving the foreign reserve assets of the European Central Bank (ECB/2005/6)
Date: 2005-03-11
Institutions: European Central Bank
Subjects: European Central Bank, European System of Central Banks, central bank, documentation, foreign-exchange reserves

29.4.2005

EN

Official Journal of the European Union

L 109/107

GUIDELINE OF THE EUROPEAN CENTRAL BANK

of 11 March 2005

amending Guideline ECB/2000/1 on the management of the foreign reserve assets of the European
Central Bank by the national central banks and the legal documentation for operations involving the
foreign reserve assets of the European Central Bank

(ECB/2005/6)

(2005/328/EC)

THE GOVERNING COUNCIL OF THE EUROPEAN CENTRAL BANK,

(3)

Having regard to the Treaty establishing the European Commu-
nity and in particular the third indent of Article 105(2) thereof,

Having regard to the third indent of Article 3.1 and to
Articles 12.1, 14.3 and 30.6 of the Statute of the European Sys-
tem of Central Banks and of the European Central Bank,

Whereas:

Guideline ECB/2000/1 of the European Central Bank of
3 February 2000 on the management of the foreign reserve
assets of the European Central Bank by the national cen-
tral banks and the legal documentation for operations
involving the foreign reserve assets of the European Cen-
tral Bank (1) stipulates, inter alia, what legal documentation
should be used for such operations.

(4)

(5)

(1)

(2)

Annex 3 to Guideline ECB/2000/1 should therefore be
amended to provide for the use of the FBE Master Agree-
ment for Financial Transactions (Edition 2004) for opera-
tions with counterparties as described in the second recital.
Article 3 of the Guideline should consequently be amended
to reflect the following: (i) the fact that it is unnecessary to
apply Annex 1 to the Guideline to operations documented
by the FBE Master Agreement for Financial Transactions
(Edition 2004); and (ii) the ECB’s decision no longer to use
the ECB Master Netting Agreement with counterparties
with which it uses the FBE Master Agreement for Financial
Transactions (Edition 2004) and which are organised or
incorporated under the laws of any of the following juris-
dictions: Austria, Belgium, Denmark, Finland, France, Ger-
the Netherlands,
Italy, Luxembourg,
many, Greece,
Portugal, Spain, United Kingdom (England and Wales
only), or Switzerland.

Two further minor amendments to Annex 1 to Guideline
ECB/2000/1 are required.

In accordance with Article 12.1 and Article 14.3 of the
Statute, ECB guidelines form an integral part of Commu-
nity law.

In 2004, the Banking Federation of the European Union
(Fédération Bancaire Européenne) (FBE) published a revised
edition of the Master Agreement for Financial Transac-
tions. The ECB considers it appropriate to use the FBE Mas-
ter Agreement for Financial Transactions (Edition 2004): (i)
for all collateralised operations involving the ECB’s foreign
reserve assets (comprising repurchase agreements, reverse
repurchase agreements, buy/sell-back agreements and
sell/buy-back agreements) where the counterparties are
incorporated or organised under the laws of any of the fol-
lowing jurisdictions: Austria, Belgium, Denmark, Finland,
France, Germany, Greece, Ireland, Italy, Luxembourg, the
Netherlands, Portugal, Spain, Sweden, United Kingdom
(England and Wales, Northern Ireland and Scotland) or
Switzerland; and (ii) for all over-the-counter derivative
operations involving the ECB’s foreign reserve assets where
the counterparties are incorporated or organised under the
laws of any of the following jurisdictions: Austria, Belgium,
Denmark, Finland, France, Germany, Greece, Ireland, Italy,
Luxembourg, the Netherlands, Portugal, Spain, United
Kingdom (England and Wales only) or Switzerland.

(1) OJ L 207, 17.8.2000, p. 24. Guideline as last amended by Guideline

ECB/2002/6 (OJ L 270, 8.10.2002, p. 14).

HAS ADOPTED THIS GUIDELINE:

Article 1

Guideline ECB/2000/1 is amended as follows:

1. Article 3(2) is replaced by the following:

‘2.
A document in the format attached as Annex 1 to this
Guideline shall be annexed to and form an integral part of
every standard agreement except the FBE Master Agreement
for Financial Transactions (Edition 2004) under which col-
lateralised operations (including without limitation repur-
chase agreements, reverse repurchase agreements, buy/sell-
back agreements, sell/buy-back agreements, securities lending
agreements and triparty repo arrangements) or over-the-
counter derivatives operations involving the ECB’s foreign
reserve assets are conducted.’

L 109/108

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Official Journal of the European Union

29.4.2005

2. Article 3(3) is replaced by the following:

(b) The title of Annex 2b is replaced by the following:

‘3.
There shall be in place with all counterparties a master
netting agreement in one of the forms attached as Annex 2
to this Guideline, except with counterparties with which the
ECB has signed an FBE Master Agreement for Financial Trans-
actions (Edition 2004) and which are organised or incorpo-
rated under the laws of any of the following jurisdictions:
Austria, Belgium, Denmark, Finland, France, Germany,
Greece, Italy, Luxembourg, the Netherlands, Portugal, Spain,
United Kingdom (England and Wales only) or Switzerland.’

3. Annex 1 is amended as follows:

‘Master Netting Agreement governed by French law (for
use with counterparties incorporated in France which
are eligible only for deposits; drafted in the French
language).’

(c) The title of Annex 2c is replaced by the following:

‘Master Netting Agreement governed by German law (for
use with counterparties incorporated in Germany which
are eligible only for deposits; drafted in the German
language).’

(a) The introductory paragraph is replaced by the following:

(d) The list of netting agreements in Appendix 1 to each of
Annexes 2a, 2b, 2c and 2d is replaced by the following:

‘This Annex is to be annexed to and form an integral
part of any standard agreement, except the FBE Master
Agreement for Financial Transactions (Edition 2004),
under which collateralised operations (including without
limitation repurchase agreements, reverse repurchase
agreements, buy/sell-back agreements, sell/buy-back
agreements, securities lending agreements and triparty
repo arrangements) or over-the-counter derivatives
operations involving the ECB’s foreign reserve assets are
conducted in accordance with Article 3(4) of
this
Guideline.’

(b) Footnote 1 is replaced by the following:

‘This Annex has been drawn up in English and is incor-
porated into master agreements drawn up in English
which are governed by English or New York law. The
translation of this Annex into other languages is for
illustrative purposes only and is not legally binding.’

‘1. FBE Master Agreement for Financial Transactions

(Edition 2004)

2.

ISDA Master Agreement (Multi-currency — Cross-
border 1992)

3. TBMA/ISMA Global Master Repurchase Agreement

(2000 version)

4. The Bond Market Association Master Repurchase

Agreement.’

5. Annex 3 is replaced by the text set out in the Annex to this

Guideline.

Article 2

Entry into force

4. Annex 2 is amended as follows:

This Guideline shall enter into force on 15 June 2005.

(a) The title of Annex 2a is replaced by the following:

‘Master Netting Agreement governed by English law (for
use with all counterparties except counterparties: (i)
incorporated in the United States of America, (ii) incor-
porated in France and Germany which are eligible only
for deposits, and (iii) with which the ECB has signed an
FBE Master Agreement for Financial Transactions (Edi-
tion 2004) and which are organised or incorporated
under the laws of any of the following jurisdictions: Aus-
tria, Belgium, Denmark, Finland, France, Germany,
Greece, Italy, Luxembourg, the Netherlands, Portugal,
Spain, United Kingdom (England and Wales only) or
Switzerland; drafted in the English language).’

Article 3

Addressees

This Guideline is addressed to the national central banks of the
Member States that have adopted the euro in accordance with the
Treaty establishing the European Community.

Done at Frankfurt am Main, 11 March 2005.

For the Governing Council of the ECB
The President of the ECB
Jean-Claude TRICHET

29.4.2005

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Official Journal of the European Union

L 109/109

ANNEX

‘ANNEX 3

Standard agreements for collateralised operations, over-the-counter derivatives operations and deposits

1. All collateralised operations involving the foreign reserve assets of the ECB (comprising repurchase agreements, reverse
repurchase agreements, buy/sell-back agreements and sell/buy-back agreements) must be documented using the fol-
lowing standard agreements, in such form as may be approved or amended by the ECB from time to time:

(a) The FBE Master Agreement for Financial Transactions (Edition 2004) for operations with counterparties organ-
ised or incorporated under the laws of any of the following jurisdictions: Austria, Belgium, Denmark, Finland,
France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Spain, Sweden, United Kingdom
(England and Wales, Northern Ireland and Scotland) or Switzerland;

(b) The Bond Market Association Master Repurchase Agreement for operations with counterparties organised or

incorporated under US federal or state laws;

and

(c) The TBMA/ISMA Global Master Repurchase Agreement (2000 version) for operations with counterparties orga-
nised or incorporated under the laws of any jurisdiction other than those listed in subparagraphs (a) or (b).

2. All over-the-counter derivatives operations involving the ECB’s foreign reserve assets must be documented using the

following standard agreements, in such form as may be approved or amended by the ECB from time to time:

(a) The FBE Master Agreement for Financial Transactions (Edition 2004) for operations with counterparties organ-
ised or incorporated under the laws of any of the following jurisdictions: Austria, Belgium, Denmark, Finland,
France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Spain, United Kingdom (England
and Wales only) or Switzerland;

(b) The 1992 International Swaps and Derivatives Association Master Agreement (Multi-currency — cross-border,
New York law version) for operations with counterparties organised or incorporated under US federal or state
laws;

and

(c) The 1992 International Swaps and Derivatives Association Master Agreement (Multi-currency — cross-border,
English law version) for operations with counterparties organised or incorporated under the laws of any jurisdic-
tion other than those listed in subparagraphs (a) or (b).

3. All deposits involving the ECB’s foreign reserve assets with counterparties which are eligible for collateralised opera-
tions as described in paragraph 1 and/or over-the-counter derivatives operations as described in paragraph 2 and which
are organised or incorporated under the laws of any of the following jurisdictions must be documented using the FBE
Master Agreement for Financial Transactions (Edition 2004), in such form as may be approved or amended by the ECB
from time to time: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Italy, Luxembourg, the Netherlands,
Portugal, Spain, United Kingdom (England and Wales only) or Switzerland.’