Decision (EU) 2022/911 of the European Central Bank of 19 April 2022 concerning the terms and conditions of TARGET-ECB and repealing Decision 2007/610/EC (ECB/2007/7) (ECB/2022/22)

The TIPS AS settlement procedure shall be operational during the times set out in Appendix V.

Article 7

Reachable parties via a TIPS AS technical account

1. A TIPS AS technical account holder may designate one or more reachable parties. Reachable parties shall have adhered to the SCT Inst scheme signing the SEPA Instant Credit Transfer Adherence Agreement.

1. A TIPS AS technical account holder shall provide evidence to the ECB of each designated reachable party’s adherence to the SCT Inst scheme.

1. A TIPS AS technical account holder shall inform the ECB if any designated reachable party no longer adheres to the SCT Inst scheme and shall, without undue delay, take steps to prevent the reachable party from accessing the TIPS AS technical account.

1. A TIPS AS technical account holder may allow its designated reachable parties access via one or more instructing parties.

1. Part I, Article 7 shall apply to an AS that has designated reachable parties.

1. A TIPS AS technical account holder that has designated a reachable party shall ensure that reachable party is at all times available for the purpose of receiving messages.

Article 8

Transactions processed on TIPS AS technical accounts

1. The following transactions shall be processed via a TIPS AS technical account in TARGET-ECB:

(a) instant payment orders;

(b) positive recall answers;

(c) liquidity transfer orders to TIPS DCAs.

Article 9

TIPS directory

1. The TIPS directory is a list of BICs used for the purpose of routing information and comprises the BICS of:

(a) TIPS DCA holders;

(b) reachable parties;

1. The TIPS directory shall be updated daily.

1. TIPS AS technical account holders may only distribute the TIPS directory to their designated reachable parties and their instructing parties. Reachable parties may only distribute the TIPS directory to their branches.

1. A specific BIC shall only appear once in the TIPS directory.

1. TIPS AS technical account holders acknowledge that the ECB and other CBs may publish names and BICs of reachable parties designated by the TIPS AS technical account holders and TIPS AS technical account holders shall ensure that reachable parties have agreed to such publication.

Article 10

MPL repository

1. The central Mobile Proxy Lookup (MPL) repository contains the proxy – IBAN mapping table for the purposes of the MPL service.

1. Each proxy may be linked to only one IBAN. An IBAN may be linked to one or multiple proxies.

1. Part I, Article 28 shall apply to the data contained in the MPL repository.

Article 11

Processing of cash transfer orders in the event of suspension or extraordinary termination

1. Upon termination of a TIPS AS technical account holder’s participation in TARGET-ECB, the ECB shall not accept any new cash transfer orders to or from that TIPS AS technical account holder.

1. If a TIPS AS technical account holders’ participation in TARGET-ECB is suspended on grounds other than those specified in Part I, Article 24(1), point (a), the ECB shall:

(a) reject all of its incoming cash transfer orders;

(b) reject all of its outgoing cash transfer orders; or

(c) reject both its incoming and outgoing cash transfer orders.

1. If a TIPS AS Technical Account Holder’s participation in TARGET-ECB is suspended on the grounds specified in Part I, Article 24(1), point (a), the suspended TIPS AS technical account holder’s CB shall reject all of its incoming and outgoing sash transfer orders.

1. The ECB shall process instant payment orders of a TIPS AS technical account holder whose participation in TARGET-ECB has been suspended or terminated under Part I, Article 24(1) or (2) and in relation to which the ECB has reserved funds on a TIPS AS technical account pursuant to Article 4(3), point (b) prior to the suspension or termination.

Annex

APPENDIX I

TECHNICAL SPECIFICATIONS FOR THE PROCESSING OF CASH TRANSFER ORDERS

In addition to the Conditions, the following rules shall apply to the processing of cash transfer orders:

1. Testing requirements for participation in TARGET-ECB

Each participant shall pass a series of tests to prove its technical and operational competence before it may participate in TARGET-ECB.

1. Account numbers

Each participant’s account shall be identified by a unique account number of up to 34 characters made up of five sections as follows:

For sub-accounts this section must start with the 3-character AS code as defined by the central bank.

NameNo. of CharactersContentAccount type1

M = MCA

R = RTGS DCA

C = T2S DCA

I = TIPS DCA

T = RTGS AS Technical account

U = Sub-account

A = TIPS AS Technical account

G = AS Guarantee funds account

D = Overnight deposit account

X = Contingency Account

Country Code of Central Bank2ISO Country code : 3166-1Currency code3EURBIC11Account holder BICAccount nameMax. 17Free text

1. Messaging rules in TARGET

(a) Each participant shall comply with the message structure and field specifications, as defined in Part 3 of the relevant User Detailed Functional Specifications (UDFS).

(b) Business application headers shall be attached to all message types processed on MCAs, RTGS DCAs (including sub-accounts) RTGS AS technical accounts, AS guarantee fund accounts and T2S DCAs as follows:

Message TypeDescriptionhead.001Business application headerhead.002Business file header

1. Message types processed in TARGET

(a) The following message types are processed on MCAs:

Message TypeDescriptionAdministration (admi)admi.004SystemEventNotificationadmi.005ReportQueryRequestadmi.007ReceiptAcknowledgementCash Management (camt)camt.003GetAccountcamt.004ReturnAccountcamt.005GetTransactioncamt.006ReturnTransactioncamt.018GetBusinessDayInformationcamt.019ReturnBusinessDayInformationcamt.025Receiptcamt.046GetReservationcamt.047ReturnReservationcamt.048ModifyReservationcamt.049DeleteReservationcamt.050LiquidityCreditTransfercamt.053BankToCustomerStatementcamt.054BankToCustomerDebitCreditNotificationPayments clearing and Settlement (pacs)pacs.009FinancialInstitutionCreditTransferpacs.010FinancialInstitutionDirectDebit

(b) The following message types are processed on RTGS DCAs, and where relevant on the RTGS AS technical accounts and AS guarantee funds accounts:

Administration (admi)admi.004SystemEventNotificationadmi.005ReportQueryRequestadmi.007ReceiptAcknowledgementCash Management (camt)camt.003GetAccountcamt.004ReturnAccountcamt.005GetTransactioncamt.006ReturnTransactioncamt.007ModifyTransactioncamt.009GetLimit

camt.010ReturnLimitcamt.011ModifyLimitcamt.012DeleteLimitcamt.018GetBusinessDayInformationcamt.019ReturnBusinessDayInformationcamt.021ReturnGeneralBusinessInformationcamt.025Receiptcamt.029ResolutionOfInvestigationcamt.046GetReservationcamt.047ReturnReservationcamt.048ModifyReservationcamt.049DeleteReservationcamt.050LiquidityCreditTransfercamt.053BankToCustomerStatementcamt.054BankToCustomerDebitCreditNotificationcamt.056FIToFIPaymentCancellationRequestPayments Clearing and Settlement (pacs)pacs.002PaymentStatusReportpacs.004PaymentReturnpacs.008CustomerCreditTransferpacs.009FinancialInstitutionCreditTransferpacs.010FinancialInstitutionDirectDebitPayments Initiation (pain)pain.998ASInitiationStatuspain.998ASTransferNoticepain.998ASTransferInitiation

(c) The following message types are processed on T2S DCAs:

Message TypeDescriptionAdministration (admi)admi.005ReportQueryRequestadmi.006ResendRequestSystemEventNotificationadmi.007ReceiptAcknowledgementCash Management (camt)(camt.003)GetAccount

(camt.004)ReturnAccount(camt.005)GetTransaction(camt.006)ReturnTransaction(camt.009)GetLimit(camt.010)ReturnLimit(camt.011)ModifyLimit(camt.012)DeleteLimit(camt.018)GetBusinessDayInformation(camt.019)ReturnBusinessDayInformation(camt.024)ModifyStandingOrder(camt.025)Receipt(camt.050)LiquidityCreditTransfer(camt.051)LiquidityDebitTransfer(camt.052)BankToCustomerAccountReport(camt.053)BankToCustomerStatement(camt.054)BankToCustomerDebitCreditNotification(camt.064)LimitUtilisationJournalQuery(camt.065)LimitUtilisationJournalReport(camt.066)IntraBalanceMovementInstruction(camt.067)IntraBalanceMovementStatusAdvice(camt.068)IntraBalanceMovementConfirmation(camt.069)GetStandingOrder(camt.070)ReturnStandingOrder(camt.071)DeleteStandingOrder(camt.072)IntraBalanceMovementModificationRequest(camt.073)IntraBalanceMovementModificationRequestStatusAdvice(camt.074)IntraBalanceMovementCancellationRequest(camt.075)IntraBalanceMovementCancellationRequestStatusAdvice(camt.078)IntraBalanceMovementQuery(camt.079)IntraBalanceMovementQueryResponse(camt.080)IntraBalanceModificationQuery(camt.081)IntraBalanceModificationReport(camt.082)IntraBalanceCancellationQuery(camt.083)IntraBalanceCancellationReport(camt.084)IntraBalanceMovementPostingReport(camt.085)IntraBalanceMovementPendingReport

(d) The following message types are processed on TIPS DCAs and TIPS AS technical accounts:

Message TypeDescriptionAdministration (admi)Pacs.002FIToFIPayment Status ReportPacs.004PaymentReturnPacs.008FIToFICustomerCreditTransferPacs.028FIToFIPaymentStatusRequestCash Management (camt)camt.003GetAccountcamt.004ReturnAccountcamt.011ModifyLimitcamt.019ReturnBusinessDayInformationcamt.025Receiptcamt.029ResolutionOfInvestigationcamt.050LiquidityCreditTransfercamt.052BankToCustomerAccountReportcamt.053BankToCustomerStatementcamt.054BankToCustomerDebitCreditNotificationcamt.056FIToFIPaymentCancellationRequestacmt.010AccountRequestAcknowledgementacmt.011AccountRequestRejectionacmt.015AccountExcludedMandateMaintenanceRequestReference data (reda)reda.016PartyStatusAdviceV01reda.022PartyModificationRequestV01

1. Double-entry check

All cash transfer orders shall pass a double-entry check, the aim of which is to reject orders that have been submitted more than once (duplicated cash transfer orders). Details can be found in Part I, Section 3 of the relevant UDFS.

1. Validation rules and error codes

Validation of messages is carried out according to High Value Payments Plus (HVPS+) guidelines on message validations specified by the ISO 20022 standard, and TARGET-specific validations. The detailed validation rules and error codes are described in the respective parts of the UDFS as follows:

(a) for MCAs, in Chapter 14 of the CLM UDFS;

(b) for RTGS DCAs, in Chapter 13 of the RTGS UDFS;

(c) for T2S DCAs, in Chapter 4.1 of the T2S UDFS.

If an instant payment order or a positive recall answer is rejected for any reason, the TIPS DCA holder shall receive a payment status report [pacs.002], as described in Chapter 4.2 of the TIPS UDFS. If a liquidity transfer order is rejected for any reason, the TIPS DCA holder shall receive a rejection [camt.025], as described in Chapter 1.6 of the TIPS UDFS.

1. Predetermined settlement times and events

RTGS DCAs

(a) For payment orders using the Earliest Debit Time Indicator, the message element /FromTime/ shall be used.

(b) For payment orders using the Latest Debit Time Indicator, two options shall be available.

(i) Message element RejectTime: if the payment order cannot be settled by the indicated debit time, the cash transfer order shall be rejected.

(ii) Message element TillTime: if the payment order cannot be settled by the indicated debit time, the cash transfer order shall not be rejected but shall be kept in the relevant queue.

Under both options, if a payment order with a Latest Debit Time Indicator is not settled 15 minutes prior to the time indicated therein, a notification shall automatically be sent via the GUI.

T2S DCAs

(a) For immediate liquidity transfer orders, no specific XML tag is required;

(b) Predefined liquidity transfer orders and standing liquidity transfer orders may be triggered by a specific time or event on the day of settlement:

(i) for settlement at a specific time, the XML tag Time(/ExctnTp/Tm/) shall be used,

(ii) for settlement upon occurrence of a specific event, the XML tag

(EventType/ExctnTp/Evt/) shall be used.

(c) the validity period for standing liquidity transfer orders shall be set by the following XML tags:

FromDate/VldtyPrd/FrDt/ and ToDate/VldtyPrd/ToDt/.

1. Offsetting of cash transfer orders on RTGS DCAs

Offsetting checks and, if appropriate, extended offsetting checks (both terms as defined in subparagraphs a) and b) shall be carried out on cash transfer orders to facilitate the smooth settlement.

(a) An offsetting check shall determine whether the payee’s cash transfer orders that are at the front of the queue for cash transfer orders with the priority urgent or, if inapplicable, high are available to be offset against the payer’s cash transfer order (hereinafter offsetting cash transfer orders). If an offsetting cash transfer order does not provide sufficient funds for the respective payer’s cash transfer order it shall be determined whether there is sufficient available liquidity on the payer’s RTGS DCA.

(b) If the offsetting check fails, the ECB may apply an extended offsetting check. An extended offsetting check determines whether offsetting cash transfer orders are available in any of the payee’s queues regardless of when they joined the queue. However, if in the queue of the payee there are higher priority cash transfer orders addressed to other participants, the FIFO principle may only be breached if settling such an offsetting cash transfer order would result in a liquidity increase for the payee.

1. Optimisation algorithms on RTGS DCAs and sub-accounts

Four algorithms shall be applied to facilitate the smooth settlement of payment flows. Further information is available in the RTGS UDFS Part 2.

(a) Under the partial optimisation algorithm the ECB shall:

(i) calculate and check the liquidity positions, limits and reservations of each relevant RTGS DCA; and

(ii) if the total liquidity position of one or more relevant RTGS DCA is negative, extract single payment orders until the total liquidity position of each relevant RTGS DCA is positive.

Thereafter, the ECB and the other CBs involved shall, provided there are sufficient funds, settle the relevant remaining cash transfer orders (except the extracted payment orders described in point (ii)) simultaneously on the RTGS DCAs of the participants concerned.

When extracting payment orders, the ECB shall start from the participant’s RTGS DCA with the highest negative total liquidity position and from the payment order at the end of the queue with the lowest priority. The selection process shall only run for a short time, to be determined by the ECB at its discretion.

(b) Under the multiple optimisation algorithm the ECB shall:

(i) compare pairs of participants’ RTGS DCAs to determine whether queued payment orders can be settled within the available liquidity of the two participants’ RTGS DCAs concerned and within the limits set by them (by starting from the pair of RTGS DCAs with the smallest difference between the payment orders addressed to each other), and the CBs involved shall book those payments simultaneously on the two participants’ RTGS DCAs; and

(ii) if, in relation to a pair of RTGS DCAs as described in point (i), liquidity is insufficient to fund the bilateral position, extract single payment orders until there is sufficient liquidity. In this case the CBs involved shall settle the remaining payments, except the extracted ones, simultaneously on the two participants’ RTGS DCAs.

After performing the checks specified in points (i) to (ii), the ECB shall check the multilateral settlement positions (between a participant’s RTGS DCA and other participants’ RTGS DCAs in relation to which a multilateral limit has been set). For this purpose, the procedure described under subparagraphs (i) to (ii) shall apply mutatis mutandis.

(c) Under the algorithm partial optimisation with AS which supports settlement procedure B, the ECB shall follow the same procedure as for the partial optimisation algorithm, but without extracting AS transfer orders (for an AS which settles on a simultaneous multilateral basis i.e. RTGS AS settlement procedure B).

(d) The algorithm optimisation on sub-accounts’ is used to optimise the settlement of urgent priority AS transfer orders on participants sub-accounts. When using this algorithm the ECB shall calculate the total liquidity position of each participant’s sub-account by establishing whether the aggregate of all outgoing and incoming AS transfer orders pending in the queue is negative or positive. If the outcome of these calculations and checks is positive for each relevant sub-account, the ECB and other CBs involved shall settle all cash transfers simultaneously on the sub-accounts of the participants concerned. If the outcome of these calculations and checks is negative no settlement shall take place. Furthermore, this algorithm does not take account of any limits or reservations. For each settlement bank the total position is calculated and, if the positions for all settlement banks are covered, all transactions shall be settled. Transactions which are not covered are returned to the queue.

(e) Cash transfer orders entered after the multiple optimisation algorithm, the partial optimisation algorithm or the partial optimisation with AS algorithm has started may nevertheless be settled immediately if the positions and limits of the participants’ RTGS DCAs concerned are compatible with both the settlement of these orders and the settlement of cash transfer orders in the current optimisation procedure.

(f) The partial optimisation algorithm and the multiple optimisation algorithm shall be run sequentially in that order. They shall not be run if RTGS AS settlement procedure B is running.

(g) The algorithms shall run flexibly by setting a pre-defined time lag between the application of different algorithms to ensure a minimum interval between the running of two algorithms. The time sequence shall be automatically controlled. Manual intervention shall be possible.

(h) While included in a running algorithm, a payment order shall not be reordered (change of the position in a queue) or revoked. Requests for reordering or revocation of a payment order shall be queued until the algorithm is complete. If the payment order concerned is settled while the algorithm is running, any request to reorder or revoke shall be rejected. If the payment order is not settled, the participant’s requests shall be taken into account immediately.

1. Connectivity

Participants shall connect to TARGET using one of the following modes.

(a) The user to application (U2A) mode: in the U2A mode, participants connect via a GUI which allows users to perform business functions based on their respective access rights. It allows users to enter and maintain business data as well as to retrieve business information. The relevant User Handbook (UHB) provides exhaustive information on each of the business functions that the respective GUI provides.

(b) The application to application (A2A) mode: in A2A mode software applications communicate with TARGET by exchanging single messages and files based on their respective access rights and message subscription and routing configuration. The A2A communication relies on XML messages, using the ISO 20022 standard where applicable, for both inbound and outbound communication.

The modes of connection are described in further detail in the ESMIG UDFS.

1. The UDFS and the User Handbook

Further details and examples explaining the above rules are contained in the respective UDFS and the User Handbooks for each service, as amended from time to time and published on the ECB’s website in English.

Annex

APPENDIX II

TARGET COMPENSATION SCHEME

1. General principles

(a) If there is a technical malfunction of TARGET, participants may submit claims for compensation in accordance with the TARGET compensation scheme laid down in this Appendix.

(b) Unless otherwise decided by the ECB’s Governing Council, the TARGET compensation scheme shall not apply if the technical malfunction of TARGET arises out of external events beyond the reasonable control of the CBs concerned or as a result of acts or omissions by third parties.

(c) Compensation under the TARGET compensation scheme shall be the only compensation procedure offered in the event of a technical malfunction of TARGET. Participants may, however, use other legal means to claim for losses. If a participant accepts a compensation offer under the TARGET compensation scheme, this shall constitute the participant’s irrevocable agreement that it thereby waives all claims in relation to the cash transfer orders concerning which it accepts compensation (including any claims for consequential loss) it may have against any CB, and that the receipt by it of the corresponding compensation payment constitutes full and final settlement of all such claims. The participant shall indemnify the CBs concerned, up to a maximum of the amount received under the TARGET compensation scheme, in respect of any further claims which are raised by any other participant or any other third party in relation to the cash transfer order or cash transfer concerned.

(d) The making of a compensation offer shall not constitute an admission of liability by the ECB or any other CB in respect of a technical malfunction of TARGET.

1. Conditions for compensation offers

(a) A payer may submit a claim for an administration fee and interest compensation if, due to a technical malfunction of TARGET cash transfer order was not settled on the business day on which it was accepted.

(b) A payee may submit a claim for an administration fee if due to a technical malfunction of TARGET it did not receive a cash transfer that it was expecting to receive on a particular business day. The payee may also submit a claim for interest compensation if one or more of the following conditions are met:

(i) in the case of participants that have access to the marginal lending facility: due to a technical malfunction of TARGET, a payee had recourse to the marginal lending facility; and/or

(ii) in the case of all participants: it was technically impossible to have recourse to the money market or such refinancing was impossible on other, objectively reasonable grounds.

1. Calculation of compensation

(a) With respect to a compensation offer for a payer:

(i) the administration fee shall be EUR 50 for the first non-settled cash transfer order, EUR 25 for each of the next four such cash transfer orders and EUR 12,50 for each further such cash transfer order. The administration fee shall be calculated separately in relation to each payee;

(ii) interest compensation shall be determined by applying a reference rate to be fixed from day to day. This reference rate shall be the lower of the euro short term reference rate (€STR) rate and the marginal lending facility rate. The reference rate shall be applied to the amount of the cash transfer order not settled as a result of the technical malfunction of TARGET for each day in the period from the date of the actual or, in relation to cash transfer orders referred to in paragraph 2(b)(ii), intended submission of the cash transfer order until the date on which the cash transfer order was or could have been successfully settled. Any interest or charges resulting from the placing of any nonsettled cash transfer orders on deposit with the Eurosystem shall be deducted from, or charged to, the amount of any compensation, as the case may be;

(iii) no interest compensation shall be payable if and in so far as funds resulting from nonsettled cash transfer orders were placed in the market or used to fulfil minimum reserve requirements.

(b) With respect to a compensation offer for a payee:

(i) the administration fee shall be EUR 50 for the first non-settled cash transfer order, EUR 25 for each of the next four such cash transfer orders and EUR 12,50 for each further such cash transfer order. The administration fee shall be calculated separately in relation to each payer;

(ii) the method set out in subparagraph (a)(ii) for calculating interest compensation shall apply except that interest compensation shall be payable at a rate equal to the difference between the marginal lending facility rate and the reference rate, and shall be calculated on the amount of any recourse to the marginal lending facility occurring as a result of the technical malfunction of TARGET.

1. Procedural rules

(a) A claim for compensation shall be submitted on the claim form available on the website of the ECB (see https://www.ecb.europa.eu). Payers shall submit a separate claim form in respect of each payee and payees shall submit a separate claim form in respect of each payer. Sufficient additional information and documents shall be provided to support the information indicated in the claim form. Only one claim may be submitted in relation to a specific payment or payment order.

(b) Within four weeks of a technical malfunction of TARGET, participants shall submit their claim forms to the ECB. Any additional information and evidence requested by the ECB shall be supplied within two weeks of such request being made.

(c) The ECB shall review the claims and forward them to the ECB. Unless otherwise decided by the ECB’s Governing Council and communicated to the participants, all received claims shall be assessed no later than 14 weeks after the technical malfunction of TARGET occurs.

(d) The ECB shall communicate the result of the assessment referred to in subparagraph (c) to the relevant participants. If the assessment entails a compensation offer, the participants concerned shall, within four weeks of the communication of such offer, either accept or reject it, in respect of each cash transfer order comprised within each claim, by signing a standard letter of acceptance (in the form available on the website of the ECB (see https://www.ecb.europa.eu). If such letter has not been received by the ECB within four weeks, the participants concerned shall be deemed to have rejected the compensation offer.

(e) The ECB shall make compensation payments on receipt of a participant’s letter of acceptance of compensation. No interest shall be payable on any compensation payment.

Annex

APPENDIX III

TERMS OF REFERENCE FOR CAPACITY AND COUNTRY OPINIONS

Terms of reference for capacity opinions for participants in TARGET

European Central Bank

Sonnemannstrasse 20

60314 Frankfurt am Main

GERMANY

Participation in TARGET-ECB

[location]

[date]

Dear Sir or Madam,

We have been asked to provide this Opinion as [in-house or external] legal advisers to [specify name of Participant or branch of Participant] in respect of issues arising under the laws of [jurisdiction in which the Participant is established; hereinafter the jurisdiction] in connection with the participation of [specify name of Participant] (hereinafter the Participant) in TARGET-ECB (hereinafter the System).

This Opinion is confined to the laws of [jurisdiction] as they exist as on the date of this Opinion. We have made no investigation of the laws of any other jurisdiction as a basis for this Opinion, and do not express or imply any opinion in this regard. Each of the statements and opinions presented below applies with equal accuracy and validity under the laws of [jurisdiction], whether or not the Participant acts through its head office or one or more branches established inside or outside of [jurisdiction] in submitting Cash transfer orders and receiving Cash transfers.

I.

DOCUMENTS EXAMINED

For the purposes of this Opinion, we have examined:

(1) a certified copy of the [specify relevant constitutional documents] of the Participant such as is/ar in effect on the date hereof;

(2) [if applicable] an extract from the [specify relevant company register] and [if applicable] [register of credit institutions or analogous register];

(3) [to the extent applicable] a copy of the Participant’s licence or other proof of authorisation to provide banking, investment, funds transfer or other financial services in line with the access criteria for participation in TARGET in [jurisdiction];

(4) [if applicable] a copy of a resolution adopted by the board of directors or the relevant governin body of the Participant on [insert date], [insert year], evidencing the Participant’s agreement to adhere to the System Documents, as defined below; and

(5) [specify all powers of attorney and other documents constituting or evidencing the requisite power of the person or persons signing the relevant System Documents (as defined below) on behalf of the Participant];

and all other documents relating to the Participant’s constitution, powers, and authorisations necessary or appropriate for the provision of this Opinion (hereinafter the Participant Documents).

For the purposes of this Opinion, we have also examined:

(1) Decision (EU) [YYYY/[XX]] of the European Central Bank of [date Month 2022] concerning the terms and conditions of TARGET-ECB ([ECB/2022/XX])

Not yet published in the Official Journal.

for the System (hereinafter the Rules); and

(2) [...].

The Rules and the [...] shall be referred to hereinafter as the System Documents (and collectively with the Participant Documents as the Documents).

II.

ASSUMPTIONS

For the purposes of this Opinion we have assumed in relation to the Documents that:

(1) the System Documents with which we have been provided are originals or true copies;

(2) the terms of the System Documents and the rights and obligations created by them are valid and legally binding under the laws of the Federal Republic of Germany by which they are expressed to be governed, and the choice of the laws of the Federal Republic of Germany to govern the System Documents is recognised by the laws of the Federal Republic of Germany;

(3) the Participant Documents are within the capacity and power of and have been validly authorised, adopted or executed and, where necessary, delivered by the relevant parties; and

(4) the Participant Documents are binding on the parties to which they are addressed, and there has been no breach of any of their terms.

III.

OPINIONS REGARDING THE PARTICIPANT

A.

The Participant is a corporation duly established and registered or otherwise duly incorporated or organised under the laws of [jurisdiction].

B.

The Participant has all the requisite corporate powers to execute and perform the rights and obligations under the System Documents to which it is party.

C.

The adoption or execution and the performance by the Participant of the rights and obligations under the System Documents to which the Participant is party do not in any way breach any provision of the laws or regulations of [jurisdiction] applicable to the Participant or the Participant Documents.

D.

No additional authorisations, approvals, consents, filings, registrations, notarisations or other certifications of or with any court or governmental, judicial or public authority that is competent in [jurisdiction] are required by the Participant in connection with the adoption, validity or enforceability of any of the System Documents or the execution or performance of the rights and obligations thereunder.

E.

The Participant has taken all necessary corporate action and other steps necessary under the law of [jurisdiction] to ensure that its obligations under the System Documents are legal, valid and binding.

This Opinion is stated as of its date and is addressed solely to the ECB and the [Participant]. No other persons may rely on this Opinion, and the contents of this Opinion may not be disclosed to persons other than its intended recipients and their legal counsel without our prior written consent, with the exception of the national central banks of the European System of Central Banks and the relevant regulatory authorities of [jurisdiction].

Yours faithfully,

[signature]

Terms of reference for country opinions for non-EEA participants in TARGET

European Central Bank

Sonnemannstrasse 20

60314 Frankfurt am Main

GERMANY

Participation in TARGET-ECB

[location],

[date]

Dear Sir or Madam,

We have been asked as [external] legal advisers to [specify name of Participant or branch of Participant] (the Participant) in respect of issues arising under the laws of [jurisdiction in which the Participant is established; hereinafter the jurisdiction] to provide this Opinion under the laws of [jurisdiction] in connection with the participation of the Participant in TARGET-ECB which is a component system of TARGET (hereinafter the System). References herein to the laws of [jurisdiction] include all applicable regulations of [jurisdiction]. We express an opinion herein under the law of [jurisdiction], with

particular regard to the Participant established outside the Federal Republic of Germany in relation to rights and obligations arising from participation in the System, as presented in the System Documents defined below.

This Opinion is confined to the laws of [jurisdiction] as they exist on the date of this Opinion. We have made no investigation of the laws of any other jurisdiction as a basis for this Opinion, and do not express or imply any opinion in this regard. We have assumed that there is nothing in the laws of another jurisdiction which affects this Opinion.

1. DOCUMENTS EXAMINED

For the purposes of this Opinion, we have examined the documents listed below and such other documents as we have deemed necessary or appropriate:

(1) Decision (EU) [YYYY/[XX]] of the European Central Bank of [date Month 2022] concerning the terms and conditions of TARGET-ECB ([ECB/2022/XX])

Not yet published in the Official Journal.

for the System (hereinafter the Rules); and

(2) any other document governing the System and/or the relationship between the Participant and other participants in the System, and between the participants in the System and the ECB.

The Rules and the [ … ] shall be referred to hereinafter as the System Documents.

1. ASSUMPTIONS

For the purposes of this Opinion we have assumed in relation to the System Documents that:

(1) the System Documents are within the capacity and power of and have been validly authorised, adopted or executed and, where necessary, delivered by the relevant parties;

(2) the terms of the System Documents and the rights and obligations created by them are valid and legally binding under the laws of the Federal Republic of Germany, by which they are expressed to be governed, and the choice of the laws of the Federal Republic of Gernany to govern the System Documents is recognised by the laws of the Federal Republic of Gernany;

(3) the participants in the System through which any Cash transfer orders are sent or Cash transfers are received, or through which any rights or obligations under the System Documents are executed or performed, are licensed to provide funds transfer services, in all relevant jurisdictions; and

(4) the documents submitted to us in copy or as specimens conform to the originals.

1. OPINION

Based on and subject to the foregoing, and subject in each case to the points set out below, we are of the opinion that:

3.1.

Country-specific legal aspects [to the extent applicable]

The following characteristics of the legislation of [jurisdiction] are consistent with and in no way set aside the obligations of the Participant arising out of the System Documents: [list of country-specific legal aspects].

3.2.

General insolvency issues

3.2.a.

Types of insolvency proceedings

The only types of insolvency proceedings (including composition or rehabilitation) which, for the purpose of this Opinion, shall include all proceedings in respect of the Participant’s assets or any branch it may have in [jurisdiction] to which the Participant may become subject in [jurisdiction], are the following: [list proceedings in original language and English translation] (together collectively referred to as Insolvency Proceedings).

In addition to Insolvency Proceedings, the Participant, any of its assets, or any branch it may have in [jurisdiction] may become subject in [jurisdiction] to [list any applicable moratorium, receivership, or any other proceedings as a result of which payments to and/or from the Participant may be suspended, or limitations can be imposed in relation to such payments, or similar proceedings in original language and English translation] (hereinafter collectively referred to as Proceedings).

3.2.b.

Insolvency treaties

[jurisdiction] or certain political subdivisions within [jurisdiction], as specified, is/are party to the following insolvency treaties: [specify, if applicable which have or may have an impact on this Opinion].

3.3.

Enforceability of System Documents

Subject to the points set out below, all provisions of the System Documents will be binding an enforceable in accordance with their terms under the laws of [jurisdiction], in particular in the event of the opening of any Insolvency Proceedings or Proceedings with respect to the Participant.

In particular, we are of the opinion that:

3.3.a.

Processing of Cash transfer orders

The provisions on processing of Cash transfer orders of the Rules [add the relevant provisions implementing Articles 16 and 17 of Part I of Annex I, Articles 4 to 7 and 9 of Part II of Annex I, Articles 5 to 10 and 14 to 16 of Part III of Annex I, Articles 4 and 6 to 7 of Part IV of Annex I, Articles 6 and 10 of Part V of Annex I] are valid and enforceable. In particular, all Cash transfer orders processed pursuant to such sections will be valid, binding and will be enforceable under the laws of [jurisdiction].

The provision of the Rules which specifies the precise point in time at which Cash transfer orders submitted by the Participant to the System become enforceable and irrevocable [add the relevant provision implementing Article 17 of Annex 1, Part I] is valid, binding and enforceable under the laws of [jurisdiction].

3.3.b.

Authority of the ECB to perform its functions

The opening of Insolvency Proceedings or Proceedings in respect of the Participant will not affect the authority and powers of the ECB arising out of the System Documents. [Specify [to the extent applicable] that: the same opinion is also applicable in respect of any other entity which provides the Participants with services directly and necessarily required for participation in the System, e.g. NSP].

3.3.c.

Remedies in the event of default

[Where applicable to the Participant, the provisions contained in [list of sections] of the Rules regarding accelerated performance of claims which have not yet matured, the set-off of claims for using the deposits of the Participant, the enforcement of a pledge, suspension and termination of participation, claims for default interest, and termination of agreements and transactions ([insert other relevant clauses of the Rules or the System Documents]) are valid and enforceable under the laws of [jurisdiction].]

3.3.d.

Suspension and termination

Where applicable to the Participant, the provisions contained in [list of sections] of the Rules (in respect of suspension and termination of the Participant’s participation in the System on the opening of Insolvency Proceedings or Proceedings or other events of default, as defined in the System Documents, or if the Participant represents any kind of systemic risk or has serious operational problems) are valid and enforceable under the laws of [jurisdiction].

3.3.e.

Penalty regime

Where applicable to the Participant, the provisions contained in [list of sections] of the Rules in respect of penalties imposed on a Participant which is unable to reimburse intraday credit or overnight credit, where applicable, on time are valid and enforceable under the laws of [jurisdiction].

3.3.f.

Assignment of rights and obligations

The rights and obligations of the Participant cannot be assigned, altered or otherwise transferred by the Participant to third parties without the prior written consent of the ECB.

3.3.g.

Choice of governing law and jurisdiction

The provisions contained in [list of sections] of the Rules, and in particular in respect of the governing law, the resolution of a dispute, competent courts, and service of process are valid and enforceable under the laws of [jurisdiction].

3.4.

Voidable preferences

We are of the opinion that no obligation arising out of the System Documents, the performance thereof, or compliance therewith prior to the opening of any Insolvency Proceedings or Proceedings in respect of the Participant may be set aside in any such proceedings as a preference, voidable transaction or otherwise under the laws of [jurisdiction].

In particular, and without limitation to the foregoing, we express this opinion in respect of any Cas transfer orders submitted by any participant in the System. In particular, we are of the opinion that the provisions of [list of sections] of the Rules establishing the enforceability and irrevocability of Cash transfer orders will be valid and enforceable and that a Cash transfer orders submitted by any participant and processed pursuant to [list of sections] of the Rules may not be set aside in any Insolvency Proceedings or Proceedings as a preference, voidable transaction or otherwise under the laws of [jurisdiction].

3.5.

Attachment

If a creditor of the Participant seeks an attachment order (including any freezing order, order for seizure or any other public or private law procedure that is intended to protect the public interest or the rights of the Participant’s creditors) — hereinafter referred to as an Attachment — under the laws of [jurisdiction] from a court or governmental, judicial or public authority that is competent in [jurisdiction], we are of the opinion that [insert the analysis and discussion].

3.6.

Collateral [if applicable]

3.6.a.

Assignment of rights or deposit of assets for collateral purposes, pledge and/or repo

Assignments for collateral purposes will be valid and enforceable under the laws of [jurisdiction]. Specifically, the creation and enforcement of a pledge or repo under the [insert reference to the relevant arrangement with the CB] will be valid and enforceable under the laws of [jurisdiction].

3.6.b.

Priority of assignees’, pledgees’ or repo purchasers’ interest over that of other claimants

In the event of Insolvency Proceedings or Proceedings in respect of the Participant, the rights or assets assigned for collateral purposes, or pledged by the Participant in favour of the ECB or other participants in the System, will rank in priority of payment above the claims of all other creditors of the Participant and will not be subject to priority or preferential creditors.

3.6.c.

Enforcing title to security

Even in the event of Insolvency Proceedings or Proceedings in respect of the Participant, other participants in the System and the ECB as [assignees, pledgees or repo purchasers as applicable] will still be free to enforce and collect the Participant’s rights or assets through the action of the ECB pursuant to the Rules.

3.6.d.

Form and registration requirements

There are no form requirements for the assignment for collateral purposes of, or the creation and enforcement of a pledge or repo over the Participant’s rights or assets and it is not necessary for the [assignment for collateral purposes, pledge or repo, as applicable], or any particulars of such [assignment, pledge or repo, as applicable,] to be registered or filed with any court or governmental, judicial or public authority that is competent in [jurisdiction].

3.7.

Branches [to the extent applicable]

3.7.a.

Opinion applies to action through branches

Each of the statements and opinions presented above with regard to the Participant applies with equal accuracy and validity under the laws of [jurisdiction] in situations where the Participant acts through its one or more of its branches established outside [jurisdiction].

3.7.b.

Conformity with law

Neither the execution and performance of the rights and obligations under the System Documents nor the submission, transmission or receipt of Cash transfer orders by a branch of the Participant will in any respect breach the laws of [jurisdiction].

3.7.c.

Required authorisations

Neither the execution and performance of the rights and obligations under the System Documents nor the submission, transmission or receipt of Cash transfer orders by a branch of a Participant will require any additional authorisations, approvals, consents, filings, registrations, notarisations or other certifications of or with any court or governmental, judicial or public authority that is competent in [jurisdiction].

This Opinion is stated as of its date and is addressed solely to the ECB and the [Participant]. No other persons may rely on this Opinion, and the contents of this Opinion may not be disclosed to persons other than its intended recipients and their legal counsel without our prior written consent, with the exception of the European Central Bank and the national central banks of the European System of Central Banks [and [the national central bank/relevant regulatory authorities] of [jurisdiction]].

Yours faithfully,

[signature]

Annex

APPENDIX IV

BUSINESS CONTINUITY AND CONTINGENCY PROCEDURES

1. GENERAL PROVISIONS

This Appendix sets out the arrangements between the ECB and participants, if TARGET or one or more of the NSPs fail or are affected by an abnormal external event, or if the failure affects any participant.

All references to specific times in this Appendix are to the local time at the seat of the ECB.

Provisions set out in this section 1 shall apply to MCAs, RTGS DCAs and their sub-accounts, RTGS AS technical accounts, T2S DCAs, TIPS DCAs and TIPS AS technical accounts.

1.1.

Measures of business continuity and contingency processing

(a) In the event that an abnormal external event occurs and/or there is a failure of TARGET and/or there is a failure of one or more NSPs which affects the normal operation of TARGET, the ECB shall be entitled to adopt business continuity and contingency processing measures.

(b) The following main business continuity and contingency processing measures shall be available in TARGET:

(i) relocating the operation of TARGET to an alternative site;

(ii) changing the TARGET operating schedule.

(c) In relation to business continuity and contingency processing measures, the ECB shall have full discretion regarding whether and which measures are adopted.

1.2.

Incident communication

If an event described under paragraph 1.1(a) occurs, this shall be communicated to participants via the ECB’s website, if available, through the GUI(s) and, if applicable via domestic communication channels. In particular, communications to participants shall include the following information:

(i) a description of the event and its impact on TARGET;

(ii) the time at which resolution of the event is expected (if known);

(iii) information on the measures already taken (if any);

(iv) the advice to participants (if any);

(v) the timestamp of the communication and indication of when an update will be provided.

1.3.

Change of operating hours

(a) When changing the TARGET operating schedule as provided for in Part I, Article 18(2) of these Conditions, the ECB may delay the cut off times of TARGET for a given business day or delay the start of the following business day, or change the timing of any other event listed in Appendix V.

(b) The cut off times of TARGET for a given business day may be delayed if a TARGET failure has occurred during that day but has been resolved before 18:00. Such a closing time delay should not normally exceed two hours and shall be announced as early as possible to participants.

(c) Once a delay of the cut off times of TARGET is announced, it may be further delayed but may not be withdrawn.

1.4.

Other provisions

(a) In the event of a failure of the ECB, some or all of its technical functions in relation to TARGET-[insert CB/country reference] may be performed by other Eurosystem CBs or by the Level 3 NCBs on its behalf.

(b) The ECB may require that the participants participate in regular or ad hoc testing of business continuity and contingency processing measures, training or any other preventative arrangements, as deemed necessary by the ECB. Any costs incurred by the participants as a result of such testing or other arrangements shall be borne solely by the participants.

1. BUSINESS CONTINUITY AND CONTINGENCY PROCEDURES (RTGS DCA AND RTGS AS SETTLEMENT PROCEDURES)

In addition to the provisions set out in section 1, the provisions set out in this section 2 shall apply specifically to RTGS DCA holders and AS that make use of the RTGS AS settlement procedures.

2.1.

Relocation of the operation of TARGET to an alternative site

(a) The relocation of the operation of TARGET to an alternative site, as referred to in paragraph 1.1(b)(i), may be to a place within the same region or in another region.

(b) In the event that the operation of TARGET is relocated to another region, the participants shall: (i) refrain from sending new cash transfer orders to TARGET; (ii) at the request of the ECB perform a reconciliation; (iii) resubmit any cash transfer orders identified as missing; and (iv) provide the ECB with all relevant information in this respect.

(c) The ECB may take any further actions including debiting and crediting participants’ accounts in order to return those participants’ accounts to their status prior to the relocation.

2.2.

Change of operating hours

(a) If the ECB delays the closing of TARGET as provided for in paragraph 1.3 before 16:50, the minimum period of one hour between the cut-off time for customer and interbank payment orders should normally remain in place.

(b) AS shall have established means to cope with cases where the reopening time is delayed due to a TARGET failure on the previous day.

2.3.

Contingency processing

(a) If it deems it necessary to do so, the ECB shall initiate the contingency processing of cash transfer orders using the Contingency Solution of TARGET or other means. In such cases, contingency processing shall be provided on a best efforts basis. The ECB shall inform its participants of the start of contingency processing via any available means of communication.

(b) In contingency processing using the Contingency Solution of TARGET, cash transfer orders shall be submitted by the RTGS DCA holders and authorised by the ECB. The ECB may, exceptionally, also manually input cash transfer orders on behalf of participants. In addition, the AS may submit files containing payment instructions under RTGS AS settlement procedure A, which the AS authorises the ECB to upload into the Contingency Solution.

(c) The following cash transfer orders shall be considered as very critical and the ECB shall use best efforts to process them in a contingency without undue delay:

(i) payments related to the settlement of CLS Bank International operations processed on CLSSettlement;

(ii) central counterparty margin calls.

(d) Cash transfer orders other than those listed in point (c) and which are required to avoid systemic risk shall be considered as critical and the ECB may decide to initiate contingency processing in relation to them. Critical cash transfer orders shall include but are not limited to:

(i) cash transfer orders related to the settlement of other systemically important payment systems as defined in Regulation (EU) No 795/2014 (ECB/2014/28);

(ii) liquidity transfer orders to T2S DCAs or TIPS DCAs;

(iii) liquidity transfer orders that are indispensable to the execution of very critical cash transfer orders as set out in point (c) or to other critical cash transfer orders.

(e) Cash transfer orders that have been submitted to TARGET-ECB before the activation of contingency processing, but are queued, may also undergo contingency processing. In such cases the ECB shall endeavour to avoid the double processing of cash transfer orders, but the participants shall bear the risk of such double processing if it occurred.

(f) For contingency processing using the Contingency Solution of TARGET, participants shall provide eligible assets as collateral. During contingency processing, incoming cash transfer orders may be used to fund outgoing cash transfer orders.

2.4.

Failures linked to participants

(a) In the event that a participant has an issue or problem that prevents it from sending cash transfer orders to TARGET, it shall resolve the issue or problem using its own means. In particular, a participant may use any in-house solutions at its disposal, the GUI functionality to process liquidity transfers and payment orders or use the back-up functionality via the GUI.

(b) If the resolution means and/or solutions or functionalities used by the participant as referred to in paragraph (a) are exhausted or if they are insufficient, the participant may then request support from the ECB and the ECB shall provide such support on a best efforts basis. The ECB shall decide what support it offers to the participant.

(c) Insert if applicable, further detailed contingency measures with respect to AS shall be described in additional arrangements between the ECB and the relevant AS.

1. BUSINESS CONTINUITY AND CONTINGENCY PROCEDURES (MCA)

In addition to the provisions set out in section 1, the provisions of this section 3 shall apply specifically to MCA holders.

3.1.

Relocation of the operation of TARGET to an alternative site

(a) the relocation of the operation of TARGET to an alternative site, as referred to in paragraph 1.1(b)(i), may be to a place within the same region or in another region.

(b) In the event that the operation of TARGET is relocated to another region, the participants shall: (i) refrain from sending new cash transfer orders to TARGET; (ii) at the request of the ECB perform a reconciliation, (iii) resubmit any cash transfer orders identified as missing; and (iv) provide the ECB with all relevant information in this respect.

(c) The ECB may take any further actions including debiting and crediting participants’ accounts in order to return those participants’ accounts to their status prior to the relocation.

3.2.

Contingency processing

(a) If it deems it necessary to do so, the ECB shall initiate the contingency processing of cash transfer orders using the Contingency Solution of TARGET or other means. In such cases, contingency processing shall be provided on a best efforts basis. The ECB shall inform its participants of the start of contingency processing via any available means of communication.

(b) In contingency processing using the Contingency Solution of TARGET, cash transfer orders shall be submitted by the MCA holders and authorised by the ECB. The ECB may, exceptionally, also manually input cash transfer orders on behalf of participants.

(c) Cash transfer orders required to avoid systemic risk shall be considered as critical and the ECB may decide to initiate contingency processing in relation to them.

(d) Cash transfer orders that have been submitted to TARGET-ECB before the activation of contingency processing, but are queued, may also undergo contingency processing. In such cases the ECB shall endeavour to avoid the double processing of cash transfer orders, but the participants shall bear the risk of such double processing if it occurred.

(e) For contingency processing using the Contingency Solution of TARGET, participants shall provide eligible assets as collateral. During contingency processing, incoming cash transfer orders may be used to fund outgoing cash transfer orders.

3.3.

Failures linked to participants

(a) In the event that a participant has an issue or problem that prevents it from sending cash transfer orders in TARGET, it shall resolve the issue or problem using its own means. In particular, a participant may use any in-house solutions or the GUI functionality to process liquidity transfers orders.

(b) If the resolution means and/or solutions or functionalities used by the participant as referred to in paragraph (a) are exhausted or if they are insufficient, the participant may request support from the ECB and the ECB shall provide such support on a best efforts basis. The ECB shall decide what support it offers to the participant.

1. BUSINESS CONTINUITY AND CONTINGENCY PROCEDURES (T2S DCA)

In addition to the provisions set out in section 1, the provisions set out in this section 4 shall apply specifically to T2S DCA holders.

4.1.

Relocation of the operation of TARGET to an alternative site

(a) The relocation of the operation of TARGET to an alternative site, as set out under paragraph 1.1(b)(i), may be to a place within the same region or in another region (where available).

(b) In the event that the operation of TARGET is relocated to another region, the participants shall (i) refrain from sending new cash transfer orders to TARGET; and (ii) at the request of the ECB perform a reconciliation, (iii) resubmit any instructions identified as missing and (iv) provide the ECB with all relevant information in this respect.

(c) The ECB shall be allowed to take any further actions including debit and credit on participants’ accounts in order to bring participants’ account balances to the status they had prior to the relocation.

4.2.

Failures linked to participants

(a) In the event that a T2S DCA holder has an issue or problem that prevents it from settling cash transfer orders in TARGET-ECB, it shall resolve the issue or problem using its own means.

(b) If the resolution means referred to in paragraph (a) are exhausted or if they are insufficient, the participant may request support from the ECB, and the ECB shall provide such support on a best efforts basis. The ECB shall decide what support it offers to the participant.

Annex

APPENDIX V

TARGET OPERATING SCHEDULE

1. The value date for transactions settled in TARGET is always the value date on which the system operates.

1. All days except Saturday, Sunday, New Year’s Day, Good Friday

According to the calendar applicable at the seat of the ECB.

, Easter Monday

According to the calendar applicable at the seat of the ECB.

, 1 May, Christmas Day, and 26 December are TARGET business days and thus may be value dates for the purpose of settlement in TARGET.

1. TIPS DCAs and TIPS AS technical accounts are operated on all days. All other types of accounts are operated on all days except for Saturday, Sunday, New Year’s Day, Good Friday

According to the calendar applicable at the seat of the ECB.

, Easter Monday

According to the calendar applicable at the seat of the ECB.

, 1 May, Christmas Day, and 26 December.

1. A business day is opened during the evening of the previous business day.

1. The reference time for the system is the local time at the seat of the ECB.

1. The different phases of the TARGET business day and [the significant operational] events relevant to MCAs, RTGS DCAs

Also applies to RTGS AS technical accounts, sub-accounts and AS guarantee fund accounts.

, T2S DCAs and TIPS DCAs

Also applies to TIPS AS technical accounts.

are shown in the following table:

Also applies to RTGS AS technical accounts, sub-accounts and AS guarantee fund accounts.

Also applies to TIPS AS technical accounts.

For T2S DCAs: for the purpose of the maintenance window, 1 May shall be considered as a business day.

Partial settlement windows take place at 08:00, 10:00, 12:00, 14:00 and 15:30 (or 30 minutes before the beginning of the DvP cut-off time, whichever comes first).

HH:MMMCAsRTGS DCAsT2S DCAsTIPS DCAs18:45 (D-1)

Start of business day:

Change of value date

Start of business day:

Change of value date

Start of business day:

Change of value date

Preparation of the night-time settlement

Processing of instant payment orders and liquidity transfer orders to/from TIPS AS technical accounts.

No liquidity transfers between TIPS DCAs and other accounts

19:00 (D-1)

Settlement of CBOs

Reimbursement of marginal lending

Refunding of overnight deposits

Processing of automated and rule-based liquidity transfers orders

Deadline for acceptance of CMS data feeds

Preparation of the night-time settlement

19:30 (D-1)

Settlement of CBOs Processing of standing liquidity transfer orders

Processing of immediate liquidity transfer orders

Settlement of AS transfer orders

Processing of standing liquidity transfer orders

Processing of automated, rule-based and immediate liquidity transfer orders

Processing of instant payment orders and liquidity transfer orders from/to MCAs and RTGS DCAs20:00 (D-1)Night-time settlement cyclesProcessing of liquidity transfer orders from/to T2S DCAs

02:30

(calendar day following D-1)

Non-optional maintenance window on

business days after closing days including every business day Monday

Optional maintenance window (if needed) from 03:00–05:00 on remaining days

Non-optional maintenance window on

business days after closing days including every business day Monday

Optional maintenance window (if needed) from 03:00–05:00 on remaining days

Non-optional maintenance window on

business days after closing days including every business day Monday

Optional maintenance window (if needed) from 03:00–05:00 on remaining days

Processing of instant payment orders and liquidity transfer orders to/from TIPS AS technical accounts.

No liquidity transfer orders between TIPS DCAs and other accounts

Re-opening time (D)

Settlement of CBOs

Processing of automated,

rule-based and immediate

liquidity transfer orders

Settlement of AS transfer orders

Processing of automated, rule-based and immediate liquidity transfer orders.

Processing the customer and interbank payment orders

Night-time settlement cyclesProcessing of instant payment orders and liquidity transfer orders to/from TIPS AS technical accounts and liquidity transfer orders between TIPS DCAs and other accounts.

05:00 (D)

Day trade/Real-time settlement:

Real-time settlement preparation

Partial settlement windows

16:00 (D)Cut-off for DvP orders16:30 (D)Automatic auto-collateralisation reimbursement, followed by the optional cash sweep17:00 (D)Cut-off for customer payment orders17:40 (D)Cut-off for bilaterally agreed treasury management operations (BATM) and CBO cut-off17:45 (D)Cut-off for liquidity transfer orders to T2S-DCAsCut-off for inbound liquidity transfer ordersBlocking of liquidity transfer orders from TIPS DCAs to T2S DCAs. No liquidity transfer orders between T2S DCAs and TIPS DCAs are processed during this period18:00 (D)

Cut-off for:

liquidity transfer orders

CBOs, except standing facilities

credit line modifications

Cut-off for:

interbank payment orders and

liquidity transfer orders

AS transfer orders

FOP cut-off

End of T2S settlement processing

Recycling and purging

End of day reporting and statements

Processing of instant payment orders and liquidity transfer orders to/from TIPS AS technical accounts.

Blocking of liquidity transfer orders from TIPS DCAs to MCA/RTGS and T2S DCAs. No liquidity transfer orders between TIPS DCAs and other accounts are processed during this period.

Shortly after 18:00:

Change of business day (after receiving the camt.019 message from MCA/RTGS)

Snapshot of TIPS DCAs balances and end-of-day reporting

18:15 (D)Cut-off for the use of standing facilities18:40 (D)

Cut-off for use of marginal lending (NCBs only)

End-of-day processing

The operating hours may be changed in the event that business continuity measures are adopted in accordance with Appendix IV. On the last day of the Eurosystem reserve maintenance period, the cut-off times 18:15, 18:40, 18:45, 19:00 and 19:30 for MCAs and RTGS DCAs (as well as RTGS AS technical accounts and sub-accounts and AS guarantee fund accounts) shall occur 15 minutes later.

List of abbreviations and notes to this table:

Re-opening times: may vary according to the situation. The information is provided by the Operator.

(D-1):

previous business day

(D):

calendar day = business day = value date

CMS:

Collateral Management System

DvP orders:

Delivery versus Payment orders.

Annex

APPENDIX VI

FEE SCHEDULE

1. GENERAL

1. The following services are not included in the services offered by the ECB and shall be charged by the relevant service providers in accordance with their terms and conditions:

(a) services offered by NSPs;

(b) non-cash related T2S services.

1. A participant that wishes to change its choice of pricing scheme shall communicate this to the ECB by the twentieth calendar day of the month so that it can be taken into account for the following month.

1. FEES FOR MCA HOLDERS

MCAs and transactions settled on them shall not incur fees.

1. FEES FOR RTGS DCA HOLDERS

1. RTGS DCA holders shall choose one of the following two pricing options:

(a) a monthly fee, plus a fixed transaction fee per payment order (debit entry).

Monthly feeEUR 150Transaction fee per payment orderEUR 0,80

(b) a monthly fee, plus a transaction fee based on the volume of payment orders (debit entry) and calculated on a cumulative basis as set out in the following table. For participants in a billing group the monthly volume of payment orders (debit entry) for all participants in that group shall be aggregated.

Monthly feeEUR 1875Monthly volume of payment ordersBandFromToTransaction fee per payment order (EUR)1.1100000,602.10001250000,503.25001500000,404.50001750000,205.750011000000,1256.1000011500000,087.Above 1500000,05

1. Liquidity transfer orders from RTGS DCAs to sub-accounts, to MCAs, to overnight deposit accounts or to RTGS DCAs held by the same participant or by participants within the same banking group shall be free of charge.

1. Liquidity transfer orders from RTGS DCAs to MCAs or to RTGS DCAs held by participants not belonging to the same banking group shall incur a charge of EUR 0.80 per transaction (debit entry).

1. Liquidity transfer orders from RTGS DCAs to T2S DCAs or to TIPS DCAs shall be free of charge.

1. Cash transfer orders from an RTGS DCA to an AS account

Regardless of whether it is a RTGS DCA, an RTGS AS technical account or an AS guarantee funds account.

shall not be charged to the RTGS DCA holder.

1. The following fees shall apply to RTGS DCA holders:

Addressable BIC holders are available for different participant types: Addressable BIC holder – Correspondent; Addressable BIC holder – Branch of Participant; and Addressable BIC holder – Branch of correspondent. Only the Addressable BIC holder – Correspondent participation type shall incur the fee. The fee shall be charged for each different BIC 11.

ServiceMonthly fee (EUR)Addressable BIC holder (correspondents)20Unpublished BIC30Multi-addressee access (based on BIC 8)80

1. FEES FOR AS USING RTGS AS SETTLEMENT PROCEDURES

Fees are charged per ancillary system regardless of the number and type of accounts. AS Operators operating more than one system will be charged for each system.

1. AS using RTGS AS settlement procedures or having been granted an exception allowing them to settle on an RTGS DCA shall choose one of the following two pricing options:

(a) a monthly fee, plus a fixed transaction fee per cash transfer order.

Monthly feeEUR 300Transaction fee per cash transfer orderEUR 1,60

(b) a monthly fee, plus a transaction fee based on the volume of cash transfer orders an calculated on a cumulative basis as set out in the following table.

Monthly feeEUR 3750Monthly volume of cash transfer ordersBandFromToTransaction fee per cash transfer order (EUR)1.150001,202.5001125001,003.12501250000,804.25001500000,405.Above 500000,25

Cash transfer orders between an RTGS DCA and an AS account

Regardless of whether it is a RTGS DCA, an RTGS AS technical account or an AS guarantee funds Account.

shall be charged to the respective A according to the pricing option that the AS has opted for.

1. In addition to the fees set out above, each AS shall be subject to two fixed fees as set out in the following table.

The gross underlying value is the total amount of gross monetary obligations that are discharged via an AS after settlement has taken place on an RTGS DCA or sub-account. For CCPs, the gross underlying value is the total notional value of future contracts or the mark-to-market value of the future contracts, at values to be settled when futures contracts expire and commissions are applied.

A.

Fixed fee I

Monthly fee per ASEUR 2000

B.

Fixed fee II (based on gross underlying value)

Size (EUR millions/day)Annual fee (EUR)Monthly fee (EUR)from 0 to 999,9910000833from 1000 to 2499,99200001667from 2500 to 4999,99400003334from 5000 to 9999,99600005000from 10000 to 49999,99800006666from 50000 to 499999,991000008333500000 and above20000016667

1. FEES FOR T2S DCA HOLDERS

1. The following fees shall be charged for the operation of T2S DCAs:

ItemApplied ruleFee per item (EUR)Liquidity transfer orders between T2S DCAsPer transfer for the debited T2S DCA.0,141Intra-balance movementsAny successfully executed intra-balance movement (i.e. blocking, unblocking, reservation of liquidity, etc.).0,094A2A queriesPer business item within each A2A query generated0,007A2A reportsPer business item within each generated A2A report including A2A reports as a result of U2A queries.0,004Messages bundled into a filePer message in each file containing bundled messages0,004TransmissionEach transmission per T2S party (both inbound and outbound) will be counted and charged for (except for technical acknowledgement messages).0,012U2A queriesAny executed query search function0,100

Fee per T2S DCA

Any T2S DCA existing at any time during the monthly billing period

Currently free of charge, to be reviewed at regular intervals.

0,000Auto-collateralisationIssue or return of auto-collateralisation0,000

1. Liquidity transfer orders from a T2S DCA to an RTGS DCA, a TIPS DCA or an MCA shall be free of charge.

1. FEES FOR TIPS DCA HOLDERS

1. Fees for the operation of TIPS DCAs shall be charged to the party indicated as shown in the following table:

ItemRule appliedFee per item (EUR)Settled instant payment orderParty to be charged: the owner of the TIPS DCA to be debited0,002Unsettled instant payment orderParty to be charged: the owner of the TIPS DCA to be debited0,002Settled positive recall answerParty to be charged: the owner of the TIPS DCA to be credited0,002Unsettled positive recall answerParty to be charged: the owner of the TIPS DCA to be credited0,002

1. Liquidity transfer orders from TIPS DCAs to: MCAs; RTGS DCAs; sub-accounts; overnight deposit accounts; TIPS AS technical accounts; and T2S DCAs shall be free of charge.

1. FEES FOR AS USING TIPS AS SETTLEMENT PROCEDURE

1. Fees for the use by an AS of the TIPS AS settlement procedure shall be charged to the party indicated as shown in the following table:

ItemRule appliedFee per item (EUR)Settled instant payment orderParty to be charged: the owner of the TIPS AS technical account to be debited0,002Unsettled instant payment orderParty to be charged: the owner of the TIPS AS technical account to be debited0,002Settled positive recall answerParty to be charged: the owner of the TIPS AS technical account to be credited0,002Unsettled positive recall answerParty to be charged: the owner of the TIPS AS technical account to be credited0,002

1. Liquidity transfer orders from TIPS AS technical accounts to TIPS DCAs shall be free of charge.

1. In addition to the fees set out above, each AS shall be subject to a monthly fee based on the gross underlying volume of instant payments, near instant payments and positive recall answers settled in the AS’s own platform and enabled by the pre-funded positions on the TIPS AS technical account. The fee shall be EUR 0,0005 per settled instant payment, near instant payment or settled positive recall answer. For each month, each AS shall report the gross underlying volume of its settled instant payments, near instant payments and settled positive recall answers rounded down to the nearest ten thousand, at the latest by the third business day of the following month. The reported gross underlying volume shall be applied by the ECB to calculate the fee for the following month.

Annex

APPENDIX VII

REQUIREMENTS REGARDING INFORMATION SECURITY MANAGEMENT AND BUSINESS CONTINUITY MANAGEMENT

MCA HOLDERS, T2S DCA HOLDERS AND TIPS DCA HOLDERS

These requirements regarding information security management or business continuity management shall not apply to MCA holders, T2S DCA holders and TIPS DCA holders.

RTGS DCA HOLDERS AND AS

The requirements set out in section 1 of this Appendix VII (information security management) shall apply to all RTGS DCA holders and AS, except where an RTGS DCA holder or an AS demonstrates that a specific requirement is not applicable to it. In establishing the scope of application of the requirements within its infrastructure, the participant should identify the elements that are part of the Payment Transaction Chain (PTC). Specifically, the PTC starts at a Point of Entry (PoE), i.e. a system involved in the creation of transactions (e.g. workstations, front-office and back-office applications, middleware), and ends at the system responsible to send the message to the NSP.

The requirements set out in section 2 of this Appendix VII (business continuity management) shall apply to RTGS DCA holders and AS designated by the Eurosystem as being critical for the smooth functioning of the TARGET system on the basis of criteria periodically updated and published on the ECB’s website.

1. Information security management

Requirement 1.1: Information security policy

The management shall set a clear policy direction in line with business objectives and demonstrate support for and commitment to information security through the issuance, approval and maintenance of an information security policy aiming at managing information security and cyber resilience across the organisation in terms of identification, assessment and treatment of information security and cyber resilience risks. The policy should contain at least the following sections: objectives, scope (including domains such as organisation, human resources, asset management etc.), principles and allocation of responsibilities.

Requirement 1.2: Internal organisation

An information security framework shall be established to implement the information security policy within the organisation. The management shall coordinate and review the establishment of the information security framework to ensure the implementation of the information security policy (as per Requirement 1.1) across the organisation, including the allocation of sufficient resources and assignment of security responsibilities for this purpose.

Requirement 1.3: External parties

The security of the organisation’s information and information processing facilities should not be reduced by the introduction of, and/or the dependence on, an external party/parties or products/services provided by them. Any access to the organisation’s information processing facilities by external parties shall be controlled. When external parties or products/services of external parties are required to access the organisation’s information processing facilities, a risk assessment shall be carried out to determine the security implications and control requirements. Controls shall be agreed and defined in an agreement with each relevant external party.

Requirement 1.4: Asset management

All information assets, the business processes and the underlying information systems, such as operating systems, infrastructures, business applications, off-the-shelf products, services and user-developed applications, in the scope of the Payment Transaction Chain shall be accounted for and have a nominated owner. The responsibility for the maintenance and the operation of appropriate controls in the business processes and the related IT components to safeguard the information assets shall be assigned. Note: the owner can delegate the implementation of specific controls as appropriate, but remains accountable for the proper protection of the assets.

Requirement 1.5: Information assets classification

Information assets shall be classified in terms of their criticality to the smooth delivery of the service by the participant. The classification shall indicate the need, priorities and degree of protection required when handling the information asset in the relevant business processes and shall also take into consideration the underlying IT components. An information asset classification scheme approved by the management shall be used to define an appropriate set of protection controls throughout the information asset lifecycle (including removal and destruction of information assets) and to communicate the need for specific handling measures.

Requirement 1.6: Human resources security

Security responsibilities shall be addressed prior to employment in adequate job descriptions and in terms and conditions of employment. All candidates for employment, contractors and third-party users shall be adequately screened, especially for sensitive jobs. Employees, contractors and third-party users of information processing facilities shall sign an agreement on their security roles and responsibilities.

An adequate level of awareness shall be ensured among all employees, contractors and third-party users, and education and training in security procedures and the correct use of information processing facilities shall be provided to them to minimise possible security risks. A formal disciplinary process for handling security breaches shall be established for employees.

Responsibilities shall be in place to ensure that an employee’s, contractor’s or third-party user’s exit from or transfer within the organisation is managed, and that the return of all equipment and the removal of all access rights are completed.

Requirement 1.7: Physical and environmental security

Critical or sensitive information processing facilities shall be housed in secure areas, protected by defined security perimeters, with appropriate security barriers and entry controls. They shall be physically protected from unauthorised access, damage and interference. Access shall be granted only to individuals who fall within the scope of Requirement 1.6. Procedures and standards shall be established to protect physical media containing information assets when in transit.

Equipment shall be protected from physical and environmental threats. Protection of equipment (including equipment used off-site) and against the removal of property is necessary to reduce the risk of unauthorised access to information and to guard against loss or damage of equipment or information.

Special measures may be required to protect against physical threats and to safeguard supporting facilities such as the electrical supply and cabling infrastructure.

Requirement 1.8: Operations management

Responsibilities and procedures shall be established for the management and operation of information processing facilities covering all the underlying systems in the Payment Transaction Chain end-to-end. As regards operating procedures, including technical administration of IT systems, segregation of duties shall be implemented, where appropriate, to reduce the risk of negligent or deliberate system misuse.

Where segregation of duties cannot be implemented due to documented objective reasons, compensatory controls shall be implemented following a formal risk analysis. Controls shall be established to prevent and detect the introduction of malicious code for systems in the Payment Transaction Chain. Controls shall be also established (including user awareness) to prevent, detect and remove malicious code. Mobile code shall be used only from trusted sources (e.g. signed Microsoft COM components and Java Applets). The configuration of the browser (e.g. the use of extensions and plugins) shall be strictly controlled.

Data backup and recovery policies shall be implemented by the management; those recovery policies shall include a plan of the restoration process which is tested at regular intervals at least annually.

Systems that are critical for the security of payments shall be monitored and events relevant to information security shall be recorded. Operator logs shall be used to ensure that information system problems are identified. Operator logs shall be regularly reviewed on a sample basis, based on the criticality of the operations. System monitoring shall be used to check the effectiveness of controls which are identified as critical for the security of payments and to verify conformity to an access policy model.

Exchanges of information between organisations shall be based on a formal exchange policy, carried out in line with exchange agreements among the involved parties and shall be compliant with any relevant legislation. Third party software components employed in the exchange of information with TARGET (e.g. software received from a Service Bureau) must be used under a formal agreement with the third party.

Requirement 1.9: Access control

Access to information assets shall be justified on the basis of business requirements (need-to-know

The need-to-know principle refers to the identification of the set of information that an individual needs access to in order to carry out her/his duties.

) and according to the established framework of corporate policies (including the information security policy). Clear access control rules shall be defined based on the principle of least privilege

The principle of least privilege refers to the tailoring a subject’s access profile to an IT system to match the corresponding business role.

to reflect closely the needs of the corresponding business and IT processes. Where relevant, (e.g. for backup management) logical access control should be consistent with physical access control unless there are adequate compensatory controls in place (e.g. encryption, personal data anonymisation).

Formal and documented procedures shall be in place to control the allocation of access rights to information systems and services that fall within the scope of the Payment Transaction Chain. The procedures shall cover all stages in the lifecycle of user access, from the initial registration of new users to the final deregistration of users that no longer require access.

Special attention shall be given, where appropriate, to the allocation of access rights of such criticality that the abuse of those access rights could lead to a severe adverse impact on the operations of the participant (e.g. access rights allowing system administration, override of system controls, direct access to business data). Appropriate controls shall be put in place to identify, authenticate and authorise users at specific points in the organisation’s network, e.g. for local and remote access to systems in the Payment Transaction Chain. Personal accounts shall not be shared in order to ensure accountability.

For passwords, rules shall be established and enforced by specific controls to ensure that passwords cannot be easily guessed, e.g. complexity rules and limited-time validity. A safe password recovery and/or reset protocol shall be established.

A policy shall be developed and implemented on the use of cryptographic controls to protect the confidentiality, authenticity and integrity of information. A key management policy shall be established to support the use of cryptographic controls.

There shall be policy for viewing confidential information on screen or in print (e.g. a clear screen, a clear desk policy) to reduce the risk of unauthorised access.

When working remotely, the risks of working in an unprotected environment shall be considered and appropriate technical and organisational controls shall be applied.

Requirement 1.10: Information systems acquisition, development and maintenance

Security requirements shall be identified and agreed prior to the development and/or implementation of information systems.

Appropriate controls shall be built into applications, including user-developed applications, to ensure correct processing. These controls shall include the validation of input data, internal processing and output data. Additional controls may be required for systems that process, or have an impact on, sensitive, valuable or critical information. Such controls shall be determined on the basis of security requirements and risk assessment according to the established policies (e.g. information security policy, cryptographic control policy).

The operational requirements of new systems shall be established, documented and tested prior to their acceptance and use. As regards network security, appropriate controls, including segmentation and secure management, should be implemented based on the criticality of data flows and the level of risk of the network zones in the organisation. There shall be specific controls to protect sensitive information passing over public networks.

Access to system files and program source code shall be controlled and IT projects and support activities conducted in a secure manner. Care shall be taken to avoid exposure of sensitive data in test environments. Project and support environments shall be strictly controlled. Deployment of changes in production shall be strictly controlled. A risk assessment of the major changes to be deployed in production shall be conducted.

Regular security testing activities of systems in production shall also be conducted according to a predefined plan based on the outcome of a risk-assessment, and security testing shall include, at least, vulnerability assessments. All of the shortcomings highlighted during the security testing activities shall be assessed and action plans to close any identified gap shall be prepared and followed-up in a timely fashion.

Requirement 1.11: Information security in supplier

A supplier in the context of this exercise should be understood as any third party (and its personnel) which is under contract (agreement), with the institution, to provide a service and under the service agreement the third party (and its personnel) is granted access, either remotely or on site, to information and/or information systems and/or information processing facilities of the institution in scope or associated to the scope covered under the exercise of the TARGET self-certification.

relationships

To ensure protection of the participant’s internal information systems that are accessible by suppliers, information security requirements for mitigating the risks associated with supplier’s access shall be documented and formally agreed upon with the supplier.

Requirement 1.12: Management of information security incidents and improvements

To ensure a consistent and effective approach to the management of information security incidents, including communication on security events and weaknesses, roles, responsibilities and procedures, at business and technical level, shall be established and tested to ensure a quick, effective and orderly and safely recover from information security incidents including scenarios related to a cyberrelated cause (e.g. a fraud pursued by an external attacker or by an insider). Personnel involved in these procedures shall be adequately trained.

Requirement 1.13: Technical compliance review

A participant’s internal information systems (e.g. back office systems, internal networks and external network connectivity) shall be regularly assessed for compliance with the organisation’s established framework of policies (e.g. information security policy, cryptographic control policy).

Requirement 1.14: Virtualisation

Guest virtual machines shall comply with all the security controls that are set for physical hardware and systems (e.g. hardening, logging). Controls relating to hypervisors must include: hardening of the hypervisor and the hosting operating system, regular patching, strict separation of different environments (e.g. production and development). Centralised management, logging and monitoring as well as managing of access rights, in particular for high privileged accounts, shall be implemented based on a risk assessment. Guest virtual machines managed by the same hypervisor shall have a similar risk profile.

Requirement 1.15: Cloud computing

The usage of public and/or hybrid cloud solutions in the Payment Transaction Chain must be based on a formal risk assessment, taking into account the technical controls and the contractual clauses related to the cloud solution.

If hybrid cloud solutions are used, it is understood that the criticality level of the overall system is the highest one of the connected systems. All on-premises components of the hybrid solutions must be segregated from the other on-premises systems.

1. Business Continuity Management

The following requirements relate to business continuity management. Each TARGET participant designated by the Eurosystem as being critical for the smooth functioning of the TARGET system shall have a business continuity strategy in place that complies with the following requirements.

Requirement 2.1:

Business continuity plans shall be developed and procedures for maintaining them are in place.

Requirement 2.2:

An alternate operational site shall be available.

Requirement 2.3:

The risk profile of the alternate site shall be different from that of the primary site, in order to avoid that both sites are affected by the same event at the same time. For example, the alternate site shall be on a different power grid and central telecommunication circuit from those of the primary business location.

Requirement 2.4:

In the event of a major operational disruption rendering the primary site inaccessible and/or critical staff unavailable, the critical participant shall be able to resume normal operations from the alternate site, where it shall be possible to properly close the business day and open the following business day(s).

Requirement 2.5:

Procedures shall be in place to ensure that the processing of transactions is resumed from the alternate site within a reasonable timeframe after the initial disruption of service and commensurate to the criticality of the business that was disrupted.

Requirement 2.6:

The ability to cope with operational disruptions shall be tested at least once a year and critical staff shall be aptly trained. The maximum period between tests shall not exceed one year.

Annex

ANNEX II

TARGET GOVERNANCE ARRANGEMENTS

Level 1 — Governing CouncilLevel 2 — Technical and operational management bodyLevel 3 — Level 3 NCBs

1. General provisions

Final competence in relation to all TARGET issues, in particular the rules for the decision making in TARGET, and responsible for safeguarding the public function of TARGETConducting technical, functional, operational and financial management tasks in relation to TARGET and implementing the rules on governance decided by Level 1Taking decisions on the daily running of TARGET based on the service levels defined in the agreement referred to in Article 7(6) of Guideline ECB/2022/8

1. Pricing policy

Deciding on pricing structure/pricing policy

Deciding on the pricing envelopes

Regular review of pricing structure/ pricing policy

Drafting and monitoring of pricing envelopes

(Not applicable)

1. Financing

Deciding on rules for the financial regime of TARGET

Deciding on the financial envelopes

Drafting proposals for the main features of the financial regime as decided by Level 1.

Drafting and monitoring of financial envelopes

Approval and/or initiation of instalments payed by Eurosystem CBs to Level 3 for provision of services

Approval and/or initiation of reimbursement of fees to the Eurosystem CBs

Providing cost figures to Level 2 for the service provision

1. Service level

Deciding on the level of serviceVerifying that the service was delivered in accordance with the agreed Service levelDelivering the service in accordance with the agreed Service level

1. Operation

Deciding on the rules applicable to incidents and crisis situations

Monitoring business developments

Managing the system based on the agreement referred to in Article 7(6) of Guideline ECB/2022/8

1. Change and release management

Deciding in case of escalation

Approving the Change requests

Approving the release scoping

Approving the release plan and its execution

Assessing the Change Requests

Implementing the Change requests in line with the agreed plan

1. Risk management

approving the TARGET Risk Management Framework and the risk tolerance for TARGET as well as accepting remaining risks.

assuming ultimate responsibility for the activities of the first and second lines of defence.

establishing the organisational structure for roles and responsibilities related to risk and control

Conducting the actual risk management

Conducting risk analysis and follow-up

ensuring that all risk management arrangements are maintained and kept-up-to date

approving and reviewing the business continuity plan as outlined in the relevant operational documentation

Providing the necessary information for risk analysis according to Level 1/Level 2 requests

1. System rules

Establishing and ensuring adequate implementation of the European System of Central Bank's legal framework for TARGET including the Conditions for participation in TARGET

(Not applicable)(Not applicable)

Annex

ANNEX III

DEFINITIONS

(1) account monitoring group means a group of two or more MCAs and/or DCAs in respect of which one participant, the leader party, has a view over the balance on each of the TARGET accounts in the group;

(2) addressable BIC holder means an entity which: (a) holds a Business Identifier Code (BIC); and (b) is a correspondent or customer of a RTGS DCA holder or a branch of a RTGS DCA holder, and is able to submit payment orders to and receive payments from a TARGET component system via that RTGS DCA holder;

(3) ancillary system (AS) means a system operated by an entity established in the Union or the EEA that is subject to supervision and/or oversight by a competent authority and complies with the oversight requirements for the location of infrastructures offering services in euro, as amended from time to time and published on the ECB's website, in which payments and/or financial instruments are exchanged and/or cleared or recorded with (a) the monetary obligations resulting in cash transfer orders which are settled in TARGET and/or (b) funds held in TARGET, in accordance with Guideline ECB/2022/8;

(4) ancillary system guarantee funds account (AS guarantee funds account) means a technical account used for the purpose of holding guarantee funds to support RTGS AS settlement procedures A and B;

(5) ancillary system settlement procedure (AS settlement procedure) means any TIPS AS settlement procedure or RTGS AS settlement procedure;

(6) ancillary system transfer order (AS transfer order) means any cash transfer order that is initiated by an ancillary system for the purpose of an RTGS ancillary system settlement procedure;

(7) auto-collateralisation means intraday credit granted by a euro area national central bank (NCB) in central bank money triggered when a T2S DCA holder has insufficient funds to settle securities transactions, whereby such intraday credit is collateralised either with the securities being purchased (collateral on flow), or with securities held by the T2S DCA holder in favour of the euro area NCB (collateral on stock). An auto collateralisation transaction consists of two distinct transactions, one for the granting of auto-collateralisation and one for its reimbursement. It may also include a third transaction for any eventual relocation of collateral. For the purposes of Annex I, Part I, Article 17 all three transactions are deemed to have been entered into the system and deemed to be irrevocable at the same time as the transaction for the granting of the auto-collateralisation;

(8) automated liquidity transfer order means a liquidity transfer order generated automatically to transfer funds from a designated RTGS DCA to the participant’s MCA in the event there are insufficient funds on that MCA for the settlement of central bank operations;

(9) available liquidity means a credit balance on a participant's account and, if applicable, any intraday credit line granted on the MCA by the relevant euro area NCB in relation to such account but not yet drawn upon, or if applicable, decreased by the amount of any processed reservations of liquidity or blocking of funds on MCAs or DCAs;

(10) banking group means:

a)

a composition of credit institutions included in the consolidated financial statements of a parent company where the parent company is obliged to present consolidated financial statements under International Accounting Standard 27 (IAS 27), adopted pursuant to Commission Regulation (EC) No 1126/2008

Commission Regulation (EC) No 1126/2008 of 3 November 2008 adopting certain international accounting standards in accordance with Regulation (EC) No 1606/2002 of the European Parliament and of the Council (OJ L 320, 29.11.2008, p. 1).

and consisting of either: (i) a parent company and one or more subsidiaries; or (ii) two or more subsidiaries of a parent company; or

b)

a composition of credit institutions as referred to in subparagraph (a)(i) or (ii), where a parent company does not present consolidated financial statements in accordance with IAS 27, but may be able to satisfy the criteria defined in IAS 27 for inclusion in consolidated financial statements, subject to the verification of the CB of the participant;

c)

a bilateral or multilateral network of credit institutions that is: (i) organised through a statutory framework determining the affiliation of credit institutions to such a network; or (ii) characterised by self-organised mechanisms of cooperation (promoting, supporting and representing the business interests of its members) and/or economic solidarity going beyond the ordinary cooperation usual between credit institutions whereby such cooperation and solidarity are permitted by credit institutions’ by-laws or articles of incorporation or established by virtue of separate agreements and in each cases referred to in points (c)(i) and (c)(ii) the ECB’s Governing Council has approved an application to be considered as constituting a banking group;

(11) branch means a branch within the meaning of point (17) of Article 4(1) of Regulation (EU) No 575/2013 of the European Parleament and of the Council

Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and amending Regulation (EU) No 648/2012 (OJ L 176, 27.6.2013, p. 1).

or point (30) of Article 4(1) of Directive 2014/65/EU of the European Parleament and of the Council

Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (OJ L 173, 12.6.2014, p. 349).

;

(12) broadcast message means information made simultaneously available to all or a selected group of participants;

(13) business day or TARGET business day means any day on which MCAs, RTGS DCAs, or T2S DCAs are available for the settlement of cash transfer orders;

(14) Business Identifier Code (BIC) means a code as defined by ISO Standard No 9362;

(15) capacity opinion means a participant-specific opinion that contains an assessment of a participant’s legal capacity to enter into and carry out its obligations;

(16) cash transfer order means any instruction by a participant or a party acting on its behalf to place at the disposal of a recipient an amount of money from one account by means of a book entry onto another account and which is an ancillary system transfer order, a liquidity transfer order, an instant payment order, a positive recall answer or a payment order;

(17) central bank (CB) means a Eurosystem CB and/or a connected NCB;

(18) central bank operation means any payment order or liquidity transfer order initiated by a CB on an MCA opened in any TARGET component system;

(19) connected NCB means an NCB, other than a euro area NCB, which is connected to TARGET pursuant to a specific agreement;

(20) Contingency Solution means the functionality that allows CBs and participants to process cash transfer orders in the event that the normal operation of MCAs and/or RTGS DCAs and/or RTGS AS technical accounts is not possible;

(21) credit institution means either: (a) a credit institution within the meaning of point (1) of Article 4(1) of Regulation (EU) No 575/2013 (and Article 2(5) of Directive 2013/36/EU of the European Parliament and of the Council

Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013 on access to the activity of credit institutions and the prudential supervision of credit institutions, amending Directive 2002/87/EC and repealing Directives 2006/48/EC and 2006/49/EC (OJ L 176, 27.6.2013, p. 338).

as applicable to the credit institution) that is subject to supervision by a competent authority; or (b) another credit institution within the meaning of Article 123(2) of the Treaty that is subject to scrutiny of a standard comparable to supervision by a competent authority;

(22) credit memorandum balance (CMB) means a limit set by the TIPS DCA holder for the use of liquidity on the TIPS DCA by a specific reachable party;

(23) cross-system settlement means the settlement of AS transfer orders debiting the RTGS AS technical account or a sub-account of a settlement bank of one AS using AS settlement procedure C or D and crediting the RTGS AS technical account or a sub-account of a settlement bank of another AS using AS settlement procedure C or D;

(24) dedicated cash account (DCA) means an RTGS DCA, a T2S DCA or a TIPS DCA;

(25) deposit facility rate means deposit facility rate as defined in point (22) of Article 2 of Guideline (EU) 2015/510 (ECB/2014/60);

(26) deposit facility means deposit facility as defined in point (21) of Article 2 of Guideline (EU) 2015/510 (ECB/2014/60);

(27) euro area NCB means the national central bank (NCB) of a Member State whose currency is the euro;

(28) European Payments Council’s SEPA Instant Credit Transfer (SCT Inst) scheme or SCT Inst Scheme means an automated, open standards scheme providing a set of interbank rules to be complied with by SCT Inst participants, allowing payment services providers in the Single Euro Payments Area (SEPA) to offer an automated SEPA-wide euro instant credit transfer product;

(29) Eurosystem CB means the ECB or a euro area NCB;

(30) event of default means any impending or existing event, the occurrence of which may threaten the performance by a participant of its obligations under the Conditions contained in Annex I, Part I or any other rules applying to the relationship between that participant and the participant’s CB or any other CB, including:

(a) where the participant no longer meets the access criteria laid down in the national implementation of Part I, Annex I, Article 4 or the requirements laid down in Part I, Annex I, Article 5(1), point (a);

(b) the opening of insolvency proceedings in relation to the participant;

(c) the submission of an application relating to the proceedings referred to in point (b);

(d) the issue by the participant of a written declaration of its inability to pay all or any part of its debts or to meet its obligations arising in relation to intraday credit;

(e) the entry of the participant into a voluntary general agreement or arrangement with its creditors;

(f) where the participant is, or is deemed by its CB to be, insolvent or unable to pay its debts;

(g) where the participant's credit balance on any of its TARGET accounts, or all or a substantial part of the participant's assets are subject to a freezing order, attachment, seizure or any other procedure that is intended to protect the public interest or the rights of the participant's creditors;

(h) where participation of the participant in another TARGET component system and/or in an AS has been suspended or terminated;

(i) where any material representation or pre-contractual statement made by the participant or which is implied to have been made by the participant under the applicable law is incorrect or untrue;

(j) the assignment of all or a substantial part of the participant's assets;

(31) guarantee funds means funds provided by participants of an AS, to be used in the event of the failure, for whatever reason, of one or more participants to meet their payment obligations in the AS;

(32) insolvency proceedings’ means insolvency proceedings within the meaning of Article 2(j) of Directive 98/26/EC;

(33) instant payment order means, in line with the European Payments Council’s SEPA Instant Credit Transfer (SCT Inst) scheme, a cash transfer order which can be executed 24 hours a day any calendar day of the year, with immediate or close to immediate settlement and notification to the payer, and which includes: (i) TIPS DCA to TIPS DCA instant payment orders; (ii) TIPS DCA to TIPS AS technical account instant payment orders; (iii) TIPS AS technical account to TIPS DCA instant payment orders; and (iv) TIPS AS technical account to TIPS AS technical account instant payment orders;

(34) instructing party means an entity which has been designated as such by a TIPS DCA holder or the holder of a TIPS AS technical account, and which is allowed to send instant payment orders or liquidity transfer orders and/or receive instant payment orders or liquidity transfer orders on behalf of that account holder or a reachable party of that account holder;

(35) intraday credit means credit extended for a period of less than one business day;

(36) investment firm means an investment firm within the meaning of Article 4(1)(1) of Directive 2014/65/EU, excluding the institutions specified in Article 2(1) of Directive 2014/65/EU as applicable to the investment firm, provided that the investment firm in question is:

a)

authorised and supervised by a recognised competent authority, which has been designated as such under Directive 2014/65/EU; and

b)

entitled to carry out the activities referred to under items 2, 3, 6 and 7 of Section A of Annex I to Directive 2014/65/EU as applicable to the investment firm;

(37) Level 3 NCBs’ means the Deutsche Bundesbank, the Banque de France, the Banca d’Italia and the Banco de España in their capacity as the CBs developing and operating TARGET for the Eurosystem’s benefit;

(38) liquidity transfer order means a cash transfer order to transfer a specified amount of funds for the purpose of liquidity management;

(39) marginal lending facility rate means marginal lending facility rate as defined in point (57) of Article 2 of Guideline (EU) 2015/510 (ECB/2014/60);

(40) marginal lending facility means marginal lending facility as defined in point (56) of Article 2 of Guideline (EU) 2015/510 (ECB/2014/60);

(41) mobile proxy look-up (MPL) service means a service which enables TIPS DCA holders, AS using TIPS AS technical accounts and reachable parties, who receive from their customers a request to execute an instant payment order in favour of a beneficiary identified with a proxy (e.g. a mobile number), to retrieve from the central MPL repository the corresponding beneficiary IBAN and the BIC to be used to credit the relevant TARGET Instant Payment Settlement (TIPS) account;

(42) near instant payment means a transfer of cash order which complies with the European Payments Council’s SEPA Credit Transfer Additional Optional Services (SCT AOS) NL Standard for instant processing of SEPA credit transfers;

(43) network service provider (NSP) means an undertaking that has been awarded a concession with the Eurosystem to provide connectivity services via the Eurosystem Single Market Infrastructure Gateway to the TARGET services;

(44) non-settled cash transfer order means a cash transfer order that is not settled on the business day on which it is accepted;

(45) participant means; a) an entity that holds at least one MCA and may additionally hold one or more DCAs in TARGET; or b) an AS;

(46) payee means, except where used in Article 29, Part I of Annex I, a participant whose MCA or DCA, will be credited as a result of a cash transfer order being settled;

(47) payer means, except where used in Article 29, Part I of Annex I, a participant whose MCA or DCA, will be debited as a result of a cash transfer order being settled;

(48) payment order means any instruction by a participant or a party acting on its behalf to place at the disposal of a recipient an amount of money from one account by means of a book entry onto another account and which is not an AS transfer order, a liquidity transfer order, an instant payment order or a positive recall answer;

(49) positive recall answer means, in line with the European Payments Council’s SEPA Instant Credit Transfer (SCT Inst) scheme, a cash transfer order initiated by the receiver of a recall request, in response to a recall request, for the benefit of the sender of that recall request;

(50) public sector body means an entity within the public sector, the latter term as defined in Article 3 of Council Regulation (EC) No 3603/93

Council Regulation (EC) No 3603/93 of 13 December 1993 specifying definitions for the application of the prohibitions referred to in Articles 104 and 104b (1) of the Treaty (OJ L 332, 31.12.1993, p. 1).

;

(51) reachable party means an entity which: (a) holds a Business Identifier Code (BIC); (b) is designated as such by a TIPS DCA holder or by an ancillary system holding a TIPS AS technical account; (c) is a correspondent, customer, or branch of a TIPS DCA holder or a participant of an ancillary system; or is a correspondent, customer, or branch of a participant of an ancillary system holding a TIPS AS technical account and (d) is addressable through TIPS and is able to submit cash transfer orders and receive cash transfer orders either via the TIPS DCA holder or by an ancillary system holding a TIPS AS technical account, or directly if so authorised by the TIPS DCA holder or by an ancillary system holding a TIPS AS technical account;

(52) Real-time gross settlement ancillary system settlement procedure (RTGS AS settlement procedure) means one of the range of special, predefined services for the submission and settlement of AS transfer orders related to settlement of AS on RTGS DCAs, sub-accounts and RTGS AS technical accounts;

(53) Real-time gross settlement ancillary system technical account (RTGS AS technical account) means an account held by an AS or by the CB in its TARGET component system on behalf of the AS and used in the context of an RTGS AS settlement procedure;

(54) recall request means a message from an RTGS DCA holder or a TIPS DCA holder requesting reimbursement of a settled payment order or instant payment order respectively;

(55) rule-based liquidity transfer order means a liquidity transfer order that is triggered as a result of: (a) the balance on an MCA or RTGS DCA breaching a pre-defined floor or ceiling; or (b) insufficient funds being available to cover queued urgent payment orders, AS transfer orders or high priority payment orders on an RTGS DCA;

(56) settlement bank account group means a list of RTGS DCAs and/or sub accounts set in the context of the settlement of an ancillary system using RTGS AS settlement procedures;

(57) settlement bank means an RTGS DCA holder whose RTGS DCA or sub-account is used to settle AS transfer orders submitted by an AS using the RTGS AS settlement procedures;

(58) suspension means the temporary freezing of the rights and obligations of a participant for a period of time to be determined by the participant’s CB;

(59) TARGET account means any account opened in a TARGET component system;

(60) TARGET component system means any of the CBs’ systems that form part of TARGET;

(61) TARGET coordinator means a person appointed by the ECB to ensure the daily operational management of TARGET, to manage and coordinate activity in the event of an abnormal situation occurring and to coordinate the dissemination of information to participants;

(62) TARGET Instant Payment Settlement (TIPS) ancillary system settlement procedure (TIPS AS settlement procedure) means the predefined service for the submission and settlement of liquidity transfer orders and instant payment orders related to settlement of AS on TIPS DCAs and TIPS AS technical accounts;

(63) TARGET Instant Payment Settlement (TIPS) ancillary system technical account (TIPS AS technical account) means an account held by an AS or by the CB in its TARGET component system on behalf of the AS for use by the AS for the purpose of settling instant payments or near instant payments in its own books;

(64) TARGET settlement manager means a person appointed by a Eurosystem CB to monitor the operation of its TARGET component system;

(65) TARGET2-Securities (T2S) means the set of hardware, software and other technical infrastructure components through which the Eurosystem provides the services to CSDs and Eurosystem CBs that allow core, neutral and borderless settlement of securities transactions on a delivery-versus-payment basis in central bank money;

(66) technical malfunction of TARGET means any defect or failure in the technical infrastructure and/or the computer systems used by the relevant TARGET component system, or any other event that makes it impossible to execute and complete the processing of cash transfer orders according to the relevant parts of this Guideline in the relevant TARGET component system.