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Decision of the European Central Bank of 24 July 2007 concerning the terms and conditions of TARGET2-ECB (ECB/2007/7) (2007/601/EC)

EU Decision 2007/7 · Adopted 24 July 2007 · Extends to United Kingdom

Original text. legislation.gov.uk does not revise this item, so later amendments are not shown here. Changes made to it are listed under each provision when known.

Decision of the European Central Bank

of 24 July 2007

concerning the terms and conditions of TARGET2-ECB

(ECB/2007/7)

(2007/601/EC)

THE EXECUTIVE BOARD OF THE EUROPEAN CENTRAL BANK,

Having regard to the Treaty establishing the European Community, and in particular the fourth indent of Article 105(2) thereof,

Having regard to the Statute of the European System of Central Banks and of the European Central Bank, and in particular Article 11.6 and Articles 17, 22 and 23 thereof,

Whereas:

(1)

A single monetary policy entails the need for a payment arrangement through which the monetary policy operations between the national central banks (NCBs) and credit institutions can be effected in a timely and secure manner, and which fosters the singleness of the money market within the euro area.

(2)

The original Trans-European Automated Real-time Gross settlement Express Transfer system (TARGET) is being replaced by TARGET2, which is characterised by a single technical platform called the Single Shared Platform (SSP). TARGET2 will continue to fulfil the same underlying purposes as TARGET, providing a sound and efficient mechanism, functioning on the basis of the SSP, to settle payments in euro.

(3)

The Governing Council adopted Guideline ECB/2007/2 of 26 April 2007 on a Trans-European Automated Real-time Gross settlement Express Transfer system (TARGET2)f1.

(4)

The European Central Bank (ECB) will participate in TARGET2 in order to process the ECB's own payments and the payments of its customers in TARGET2, and to supply through TARGET2 settlement services to clearing and settlement organisations, including entities established outside the European Economic Area (EEA), provided that they are subject to oversight by a competent authority and their access to TARGET2-ECB has been approved by the Governing Council.

(5)

The ECB may only accept central banks and European and international organisations as customers.

(6)

The ECB may only grant intraday credit in accordance with this Decision to customers that are European or international organisations.

(7)

The Governing Council has decided that the rules of the TARGET2 component systems will be harmonised to the greatest extent possible and made public,

HAS DECIDED AS FOLLOWS:

Annotations to the whole text

Footnotes

f1

See page 1 of this Official Journal

Contents

  1. 1Scope
  2. 2Intraday credit
  3. 3Terms and conditions of TARGET2-ECB
  4. 3aRemuneration of Guarantee Funds
  5. 4Entry into force
  6. Annex I: TERMS AND CONDITIONS FOR THE OPENING AND OPERATION OF A PM ACCOUNT IN TARGET2-ECB
  7. Title I: GENERAL PROVISIONS
  8. 1Definitions
  9. 1aScope
  10. 2Appendices
  11. 3General description of TARGET2
  12. Title II: PARTICIPATION
  13. 4Access criteria
  14. 5Direct participants
  15. 6Application procedure
  16. 7TARGET2 directory
  17. Title III: OBLIGATIONS OF THE PARTIES
  18. 8Obligations of the ECB and the participants
  19. 9Cooperation and information exchange
  20. Title IV: MANAGEMENT OF PM ACCOUNTS AND PROCESSING OF PAYMENT ORDERS
  21. 10Opening and management of PM accounts
  22. 11Types of payment orders
  23. 12Acceptance and rejection of payment orders
  24. 13Priority rules
  25. 14Liquidity limits
  26. 15Liquidity reservation facilities
  27. 15aStanding instructions for liquidity reservation and dedication of liquidity
  28. 16Predetermined settlement times
  29. 17Payment orders submitted in advance
  30. 18Settlement of payment orders in the entry disposition
  31. 19Settlement and return of queued payment orders
  32. 20Entry of payment orders into the system and their irrevocability
  33. Title V: SECURITY REQUIREMENTS AND CONTINGENCY ISSUES
  34. 21Business continuity and contingency procedures
  35. 22Security requirements
  36. Title VI: THE INFORMATION AND CONTROL MODULE
  37. 23Use of the ICM
  38. Title VII: COMPENSATION, LIABILITY REGIME AND EVIDENCE
  39. 24Compensation scheme
  40. 25Liability regime
  41. 26Evidence
  42. Title VIII: TERMINATION OF PARTICIPATION AND CLOSURE OF ACCOUNTS
  43. 27Duration and ordinary termination of participation
  44. 28Suspension and extraordinary termination of participation
  45. 29Closure of PM accounts
  46. Title IX: FINAL PROVISIONS
  47. 30The ECB's rights of pledge and set-off
  48. 31Security rights in relation to funds on sub-accounts
  49. 32Confidentiality
  50. 33Data protection, prevention of money laundering, administrative or restrictive measures and related issues
  51. 34Notices
  52. 35Contractual relationship with TARGET2 network service provider
  53. 36Amendment procedure
  54. 37Third party rights
  55. 38Governing law, jurisdiction and place of performance
  56. 39Severability
  57. 40Entry into force and binding nature
  58. ITECHNICAL SPECIFICATIONS FOR THE PROCESSING OF PAYMENT ORDERS
  59. IITARGET2 COMPENSATION SCHEME
  60. IIITERMS OF REFERENCE FOR CAPACITY AND COUNTRY OPINIONS
  61. IVBUSINESS CONTINUITY AND CONTINGENCY PROCEDURE
  62. VOPERATING SCHEDULE
  63. VIAppendix VI
  64. Annex II: TERMS AND CONDITIONS FOR THE OPENING AND OPERATION OF A T2S DEDICATED CASH ACCOUNT (T2S DCA) IN TARGET2
  65. GENERAL PROVISIONS
  66. 1Definitions
  67. 2Scope
  68. 3Appendices
  69. 4General description of TARGET2
  70. PARTICIPATION
  71. 5Access criteria
  72. 6Application procedure
  73. 7T2S DCA holders
  74. 8Links between securities accounts and T2S DCAs
  75. OBLIGATIONS OF THE PARTIES
  76. 9Obligations of the ECB and the T2S DCA holders
  77. 10Cooperation and information exchange
  78. 11Designation, suspension or termination of the Main PM account
  79. OPENING AND MANAGEMENT OF THE T2S DCA AND PROCESSING OF OPERATIONS
  80. 12Opening and management of the T2S DCA
  81. 13Operations that may be carried out through the T2S DCA
  82. 14Acceptance and rejection of payment orders
  83. 15Reservation and blocking of liquidity
  84. 16Moment of entry, moment of irrevocability
  85. SECURITY REQUIREMENTS, CONTINGENCY ISSUES AND USER INTERFACES
  86. 17Business continuity and contingency procedures
  87. 18Security requirements
  88. 19User interfaces
  89. COMPENSATION, LIABILITY REGIME AND EVIDENCE
  90. 20Compensation scheme
  91. 21Liability regime
  92. 22Evidence
  93. TERMINATION AND CLOSURE OF T2S DCAS
  94. 23Duration and ordinary termination of T2S DCAs
  95. 24Suspension and extraordinary termination of participation
  96. 25Closure of T2S DCAs
  97. FINAL PROVISIONS
  98. 26The ECB's rights of pledge and set-off
  99. 27Confidentiality
  100. 28Data protection, prevention of money laundering, administrative or restrictive measures and related issues
  101. 29Notices
  102. 30Contractual relationship with T2S network service provider
  103. 31Amendment procedure
  104. 32Third party rights
  105. 33Governing law, jurisdiction and place of performance
  106. 34Severability
  107. 35Entry into force and binding nature
  108. IAppendix I
  109. IIAppendix II
  110. IIIAppendix III
  111. IVAppendix IV
  112. VAppendix V
  113. VIAppendix VI
  114. Annex III: TERMS AND CONDITIONS FOR THE OPENING AND OPERATION OF A TIPS DEDICATED CASH ACCOUNT (TIPS DCA) IN TARGET2-ECB
  115. Title I: GENERAL PROVISIONS
  116. 1Definitions
  117. 2Scope
  118. 3Appendices
  119. 4General description of TARGET2
  120. Title II: PARTICIPATION
  121. 5Access criteria
  122. 6Application procedure
  123. 7TIPS DCA holders
  124. 8Reachable parties
  125. 9TIPS network service providers
  126. 10Sponsorship of network service providers
  127. 11TIPS directory
  128. Title III: OBLIGATIONS OF THE PARTIES
  129. 12Obligations of the ECB and the TIPS DCA holders
  130. 13Designation, suspension or termination of a Linked PM account
  131. 14Cooperation and information exchange
  132. Title IV: MANAGEMENT OF TIPS DCAs AND PROCESSING OF PAYMENT ORDERS
  133. 15Opening and management of TIPS DCAs
  134. 16Types of payment orders in TIPS DCA
  135. 17Acceptance and rejection of payment orders
  136. 18Processing of payment orders on TIPS DCAs
  137. 19Recall request
  138. 20Moment of entry, moment of irrevocability
  139. Title V: SECURITY REQUIREMENTS, BUSINESS CONTINUITY AND USER INTERFACE
  140. 21Security requirements and business continuity
  141. 22User interfaces
  142. Title VI: LIABILITY REGIME AND EVIDENCE
  143. 23Liability regime
  144. 24Evidence
  145. Title VII: TERMINATION AND CLOSURE OF TIPS DCAs
  146. 25Duration and ordinary termination of TIPS DCAs
  147. 26Suspension and extraordinary termination of participation
  148. 27Closure of TIPS DCAs
  149. Title VIII: FINAL PROVISIONS
  150. 28The ECB's rights of pledge and set-off
  151. 29Confidentiality
  152. 30Data protection, prevention of money laundering, administrative or restrictive measures and related issues
  153. 31Notices
  154. 32Amendment procedure
  155. 33Third party rights
  156. 34Governing law, jurisdiction and place of performance
  157. 35Severability
  158. 36Entry into force and binding nature
  159. IAppendix I
  160. IIAppendix II
  161. IIIAppendix III
  162. IVAppendix IV
  163. VAppendix V