Guideline of the European Central Bank of 3 August 2006 amending Guideline ECB/2005/16 on a Trans-European Automated Real-time Gross settlement Express Transfer system (TARGET) (ECB/2006/11)
Date: 2006-08-03
Institutions: European Central Bank
Subjects: European Central Bank, capital transfer, central bank, electronic banking, intra-EU payment, trans-European network

12.8.2006

EN

Official Journal of the European Union

L 221/17

EUROPEAN CENTRAL BANK

GUIDELINE OF THE EUROPEAN CENTRAL BANK

of 3 August 2006

amending Guideline ECB/2005/16 on a Trans-European Automated Real-time Gross settlement
Express Transfer system (TARGET)

(ECB/2006/11)

(2006/562/EC)

THE GOVERNING COUNCIL OF THE EUROPEAN CENTRAL BANK,

HAS ADOPTED THIS GUIDELINE:

Having regard to the Treaty
establishing the European
Community and in particular to the first and fourth indents
of Article 105(2) thereof and to Articles 3.1, 12.1, 14.3, 17,
18 and 22 of the Statute of the European System of Central
Banks and of the European Central Bank,

Article 1

Guideline ECB/2005/16 is amended as follows:

Whereas:

(1)

(2)

(3)

(4)

The fourth indent of Article 105(2) of the Treaty and the
fourth indent of Article 3.1 of the Statute state that one
of the basic tasks to be carried out through the European
is to promote the
System of Central Banks (ESCB)
smooth operation of payment systems.

Article 22 of the Statute states that the European Central
Bank (ECB) and national central banks (NCBs) may
provide facilities to ensure efficient and sound clearing
and payment systems within the Community and with
other countries.

In addition to connection via interlinking or through a
bilateral
link, a third form of connection to TARGET
should be made available as a transitional measure in
view of
the future set-up of TARGET2. An NCB
without its own RTGS system should be given access
to the current TARGET infrastructure by remote partici-
pation in another NCB’s RTGS system.

Guideline ECB/2005/16 of 30 December 2005 on a
Trans-European Automated Real-time Gross settlement
be
Express
amended to include
regulating
remote participation,

system (TARGET) (1)

specific provisions

Transfer

should

(1) OJ L 18, 23.1.2006, p. 1.

1. The following definitions are inserted in Article 1:

‘— “remote NCB” shall mean an NCB which does not
operate its own RTGS system but remotely participates
in the RTGS system of another NCB in accordance with
the provisions of Article 2(3);

— “host NCB” shall mean the NCB that permits a remote
NCB to participate in its RTGS system in accordance
with Article 2(3);’

2. The following Article 2(3) is inserted:

‘3. When a remote NCB and credit institutions and other
entities in its Member State remotely participate in a host
NCB’s RTGS system in accordance with that RTGS system’s
RTGS rules, the following specific additional provisions shall
apply:

— the host NCB shall grant the remote NCB unlimited and

uncollateralised credit,

— the host NCB and the remote NCB may agree on terms
and conditions that complement the RTGS rules of the
host NCB’s RTGS system,

L 221/18

EN

Official Journal of the European Union

12.8.2006

— the remote NCB shall grant intraday credit to entities in
its Member State participating in the host NCB’s RTGS
system in accordance with the requirements of Article
3(f),

— payments between entities in the remote NCB’s Member
State and between such entities and other participants in
the host NCB’s RTGS system shall be considered as
domestic payments for
the purposes of pricing and
other relevant matters, while payments between entities
in the remote NCB's Member State and participants in an
RTGS system other than the host NCB's RTGS system
shall be considered as cross-border payments for such
purposes,

— the remote NCB may appoint its representatives to the
bodies referred to in Article 7(2) and may nominate a
person or persons to undertake the functions specified in
Article 7(3).’

Article 2

Final provisions

This Guideline is addressed to the NCBs of participating

1.
Member States.

This Guideline shall enter into force on 15 August 2006.

2.
It shall apply from 1 January 2007.

Done at Frankfurt am Main, 3 August 2006.

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

Jean-Claude TRICHET