Guideline of the European Central Bank of  7 April 2006  on the Eurosystem’s provision of reserve management services in euro to central banks and countries located outside the euro area and to international organisations  (ECB/2006/4)
Date: 2006-04-17
Institutions: European Central Bank
Subjects: European Central Bank, central bank, foreign-exchange reserves, international organisation, non-participating country (euro area), participating country (euro area), provision of services, reserve currency

L 107/54

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Official Journal of the European Union

20.4.2006

EUROPEAN CENTRAL BANK

GUIDELINE OF THE EUROPEAN CENTRAL BANK

of 7 April 2006
on the Eurosystem’s provision of reserve management services in euro to central banks and
countries located outside the euro area and to international organisations

(ECB/2006/4)

(2006/294/EC)

THE GOVERNING COUNCIL OF THE EUROPEAN CENTRAL BANK,

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,

the Eurosystem member

through which
spective of
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.

Whereas:

(1)

(2)

Guideline ECB/2004/13 of 1 July 2004 on the Euro-
system’s provision of reserve management services in
euro to central banks and countries located outside the
euro area and to international organisations (1) requires
amendment to accommodate changes to the definition of
‘reserves’ and the removal of the threshold below which
no remuneration is offered on overnight credit balances
held
Guideline
ECB/2004/13 has already been amended once and
should therefore be recast in the interests of clarity and
transparency.

cash/investment

service.

as

a

(4)

The Governing Council considers it necessary to confirm
information, data and documents drafted by
that all
and/or exchanged between Eurosystem members in the
context of Eurosystem reserve management services are
of a confidential nature and are subject to Article 38 of
the Statute.

(5)

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

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.

HAS ADOPTED THIS GUIDELINE:

Article 1

Definitions

For the purposes of this Guideline:

(3)

The Governing Council considers that the Eurosystem
should act as a single system when providing Eurosystem
irre-
reserve management services to such customers,

(1) OJ L 241, 13.7.2004, p. 68. Guideline as amended by Guideline

ECB/2004/20 (OJ L 385, 29.12.2004, p. 85).

— ‘all types of banking transactions’ shall include the provision
of Eurosystem reserve management services to central banks
and countries located outside the euro area and to interna-
tional organisations in connection with the management of
the reserves of such central banks, countries and interna-
tional organisations,

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— ‘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 Euro-
system reserve management services,

Article 2

List of Eurosystem reserve management services

Eurosystem reserve management services shall consist of the
following:

— ‘central banks’ shall include monetary authorities,

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

— ‘customer’ shall mean any country (including any public
authority or government agency), any central bank or
monetary authority located outside the euro area, or any
international organisation to which Eurosystem reserve
management
a Eurosystem
member,

are provided by

services

— ‘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,

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;

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

and redemptions)
holdings;

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

(d) processing corporate actions on behalf of customers;

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

(e)

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

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

3. Settlement services:

(a)

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

— ‘reserves’

customer’s

the

eligible

shall mean

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:
(i) both the securities
falling under ‘issuer group 3’ and, for the remaining issuer
groups, the securities falling under ‘liquidity category IV’; (ii)
assets exclusively held for
the purpose of meeting the
pension and related obligations of the customer vis-à-vis
its former or existing staff; (iii) dedicated accounts opened
with a Eurosystem member by a customer for public debt
rescheduling purposes within the framework of international
agreements;
euro-
such other
denominated assets as decided from time to time by the
Governing Council.

categories of

and (iv)

(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

customers’
foreign exchange
accounts on a principal basis, covering the spot pur-
chase/sale of euro against non-euro area G10 currencies
as a minimum;

for

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Official Journal of the European Union

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

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.

(c) overnight credit balances:

— Tier 1 — automatic investment of a limited fixed

amount per customer on a principal basis,

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.

— Tier 2 — possibility of investing funds with market

participants on an agency basis;

Article 5

(d) execution of

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

(e) execution of

customers’ orders

for

securities pur-

chases/sales in the secondary market.

Article 3

Provision of services by ESPs and ISPs

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

framework of

the

2.
In addition to the services indicated in Article 2, each ESP
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.

An ISP shall be subject

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

Article 4

Information regarding Eurosystem reserve management
services

Prohibition and suspension of Eurosystem reserve
management services

The ECB will maintain for consultation by the Eurosystem
1.
members a list of existing, new 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 Security Council resolution or by the
European Union.

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
refuses
to a new or potential
customer, this 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 Euro-
system members
Eurosystem reserve
from providing
management services to such customers.

to provide such services

services

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

Article 6

Responsibility for 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.

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.

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.

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Article 7

Additional minimum common features

in contractual

arrangements with customers

Eurosystem members
arrangements with
Guideline
common features. The contractual arrangements shall:

contractual
their
that
consistent with
this
additional minimum

ensure
are
following

shall
customers

and with the

(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 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

framework of Eurosystem reserve management
shall be carried out on a best effort basis;

that certain transactions within the
services

(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

Role of the ECB

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

Article 9

Final provisions

1.

This Guideline is addressed to the participating NCBs.

Guideline ECB/2004/13 is repealed. References to the
2.
repealed Guideline shall be construed as references to this
Guideline.

This Guideline shall enter into force on 12 April 2006. It

3.
shall apply from 1 July 2006.

Done at Frankfurt am Main, 7 April 2006.

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

Jean-Claude TRICHET