[:en]The Guideline (EU) 2024/2616 of the European Central Bank (ECB), dated 30 July 2024, amends Guideline (EU) 2022/912 concerning the new-generation Trans-European Automated Real-time Gross Settlement Express Transfer system (TARGET). The key provisions of this amendment are detailed below.
### **Amendments to Guideline (EU) 2022/912**
#### **1. Amendment to Article 9, Paragraph 8**
– **Revised Text:**
– Eurosystem Central Banks (CBs) are prohibited from registering, on their own accounts, addressable Bank Identifier Code (BIC) holders or reachable parties eligible to participate in TARGET, except for:
– The relevant Eurosystem CB’s own branches.
– Entities listed under Annex I, Part I, Article 4(2), points (a) and (b).
– Participants holding accounts listed in Article 9, paragraph 2, point (d).
– **Implication:**
– This restricts the registration of certain parties by Eurosystem CBs to specific exceptions, ensuring that only authorized entities participate directly in TARGET.
#### **2. Amendment to Article 11(5), Point (b)**
– **Revised Text:**
– Specifies the nature of entitlement to funds held on a TARGET account when such funds do not form part of the estate of an Ancillary System (AS). This is to ensure compliance with the Eurosystem policy on pre-funding by ASs, as published on the ECB’s website.
– **Implication:**
– Clarifies how funds in TARGET accounts are treated, particularly in insolvency situations, reinforcing adherence to existing policies on AS pre-funding.
#### **3. Amendments to Annexes I and III**
##### **Annex I**
– **Article 12: Remuneration of Accounts**
– **Paragraph 1:**
– **Main Cash Accounts (MCAs), Dedicated Cash Accounts (DCAs), and Sub-Accounts:**
– Remunerated at the rate specified in Article 2(3)(b) of Decision (EU) 2024/1209 (ECB/2024/11), unless holding:
– **Minimum Reserves:** Governed by Council Regulation (EC) No 2531/98 and Regulation (EU) 2021/378 (ECB/2021/1).
– **Excess Reserves:** Governed by Decision (EU) 2019/1743 (ECB/2019/31).
– **Paragraph 2:**
– **Overnight Balances on AS Technical Accounts and Guarantee Funds:**
– Balances held on TARGET Instant Payment Settlement (TIPS) AS technical accounts or Real-Time Gross Settlement (RTGS) AS technical accounts used for AS settlement procedure D, and guarantee funds held by European Economic Area (EEA) financial market infrastructures, including those on AS guarantee fund accounts, are remunerated at the rate in Article 2(3)(c) of Decision (EU) 2024/1209.
– **Paragraph 3:**
– **Government Deposits:**
– Remunerated according to Article 2(3)(a) of Decision (EU) 2024/1209 (ECB/2024/11), possibly with a specified rate if applicable.
– **Appendix II: Compensation Procedures**
– **Conditions for Compensation Offers (Paragraph 2(a)):**
– Participants may claim an administration fee and interest compensation if, due to a technical malfunction of TARGET:
– A cash transfer order was not settled on the business day it was accepted or could not be submitted.
– The participant attempted to use contingency processing measures, including requesting support from their central bank.
– **Calculation of Compensation (Paragraph 3):**
– **Interest Compensation (a)(ii):**
– Calculated using the lower of:
– Euro short-term rate (€STR) minus 20 basis points.
– Marginal lending facility rate.
– For cash transfer orders to the deposit facility, the deposit facility rate applies.
– Applied to the amount of the unsettled cash transfer order for each day affected.
– **Recourse to Marginal Lending Facility (b)(ii):**
– Interest compensation is the difference between the marginal lending facility rate and the reference rate.
– Calculated on the amount of recourse due to the technical malfunction.
– **Procedural Rules (Paragraph 4):**
– **Submission Timelines:**
– Claims must be submitted within four weeks of the malfunction.
– Additional information requested must be provided within two weeks.
– **Assessment and Communication:**
– Claims assessed within 14 weeks of the malfunction (or after the reserve maintenance period for specific cases).
– Participants have four weeks to accept or reject compensation offers.
– **Appendix V, Point 6: TARGET Business Day Phases**
– **Updated Table:**
– Provides a detailed schedule of the TARGET business day, including times for settlement processes, maintenance windows, cut-off times, and the handling of various account types such as MCAs, RTGS DCAs, TIPS DCAs, and T2S DCAs (TARGET2-Securities DCAs).
– **Appendix VI: Fees**
– **Section 6: Fees for TIPS DCA Holders**
– **Monthly Fixed Fee:**
– EUR 800 per TIPS DCA, including one reachable BIC.
– **Additional Reachable Parties:**
– EUR 20 per additional reachable party up to 50; no charge beyond that.
– **Transaction Fees:**
– EUR 0.001 per instant payment order or positive recall answer, charged to both debiting and crediting TIPS DCA holders, regardless of settlement.
– **Liquidity Transfer Orders:**
– No fee for transfers from TIPS DCAs to MCAs, RTGS DCAs, sub-accounts, overnight deposit accounts, TIPS AS technical accounts, or T2S DCAs.
– **Section 7: Fees for AS Using TIPS AS Settlement Procedure**
– **Monthly Fixed Fee:**
– EUR 3,000 per TIPS AS technical account.
– **Additional Reachable Parties:**
– EUR 20 per additional reachable party up to 50; no charge beyond that.
– **Transaction Fees:**
– EUR 0.001 per instant payment order or positive recall answer, charged to both debiting and crediting TIPS AS technical account holders, regardless of settlement.
– **Liquidity Transfer Orders:**
– No fee for transfers from TIPS AS technical accounts to TIPS DCAs.
– **Monthly Volume-Based Fee:**
– Based on the gross underlying volume of settled instant payments, near instant payments, and positive recall answers.
– Fees range from EUR 0.00015 to EUR 0.00040 per transaction, decreasing with higher volumes.
##### **Annex III**
– **Definition Updates:**
– **Point (11): “Branch”**
– Defined according to Article 4(1), point (17) of Regulation (EU) No 575/2013 or point (30) of Article 4(1) of Directive 2014/65/EU, except as referred to in Article 9(8) of this Guideline.
– **Point (42): “Near Instant Payments”**
– Defined as a transfer of cash order complying with:
– The European Payment Council’s SEPA Credit Transfer Additional Optional Services (SCT AOS) NL Standard for instant processing of SEPA credit transfers.
– The European Payment Council’s SEPA One-Leg Out Instant Credit Transfer (OCTs Inst) Scheme.
### **Implementation Details**
#### **Article 2: Taking Effect and Implementation**
– **Effectiveness:**
– The Guideline takes effect upon notification to the national central banks (NCBs).
– **Application Date:**
– NCBs must comply with and apply the provisions from 1 December 2024.
– **Notification Requirement:**
– NCBs must notify the ECB of their compliance measures by 31 October 2024.
#### **Article 3: Addressees**
– **Recipients:**
– The Guideline is addressed to all Eurosystem central banks.
### **References to Other Legal Instruments**
– **Decision (EU) 2024/1209 (ECB/2024/11):**
– Establishes the remuneration rates for non-monetary policy deposits.
– **Council Regulation (EC) No 2531/98:**
– Governs the application of minimum reserves by the ECB.
– **Regulation (EU) 2021/378 (ECB/2021/1):**
– Details the calculation and remuneration of minimum reserves.
– **Decision (EU) 2019/1743 (ECB/2019/31):**
– Pertains to the remuneration of excess reserves and certain deposits.
– **Guideline (EU) 2019/671 (ECB/2019/7):**
– Addresses domestic asset and liability management operations by NCBs.
– **Regulation (EU) No 575/2013:**
– Relates to prudential requirements for credit institutions.
– **Directive 2014/65/EU:**
– Concerns markets in financial instruments.
### **Key Provisions Summary**
1. **Account Remuneration Adjustments:**
– Aligns the remuneration of various TARGET accounts with the rates specified in Decision (EU) 2024/1209, ensuring consistency across the Eurosystem.
2. **Clarification on Participant Registration:**
– Restricts the entities that Eurosystem CBs can register on their own accounts within TARGET, enhancing the security and integrity of the system.
3. **Compensation Mechanism Refinements:**
– Updates the conditions under which participants can claim compensation due to technical malfunctions.
– Specifies calculation methods for interest compensation, ensuring fairness and transparency.
4. **Operational Schedule Updates:**
– Provides a detailed timetable for the TARGET business day, reflecting current operational practices and timelines for settlement processes.
5. **Fee Structure Revisions:**
– Introduces new fees for TIPS DCA holders and AS users, promoting efficiency and cost recovery.
– Implements a volume-based fee for ASs, incentivizing higher transaction volumes with decreasing unit costs.
6. **Definition Updates:**
– Ensures that key terms are aligned with current EU legislation, providing clarity and reducing ambiguity.
### **Conclusion**
The amendments introduced by Guideline (EU) 2024/2616 serve to update and refine the operational and procedural aspects of the TARGET system. By aligning account remuneration with recent decisions, clarifying participant registration, refining compensation procedures, updating operational schedules, revising fee structures, and updating definitions, the ECB aims to enhance the efficiency, transparency, and consistency of TARGET operations across the Eurosystem.[:uk]The Guideline (EU) 2024/2616 of the European Central Bank (ECB), dated 30 July 2024, amends Guideline (EU) 2022/912 concerning the new-generation Trans-European Automated Real-time Gross Settlement Express Transfer system (TARGET). The key provisions of this amendment are detailed below.
### **Amendments to Guideline (EU) 2022/912**
#### **1. Amendment to Article 9, Paragraph 8**
– **Revised Text:**
– Eurosystem Central Banks (CBs) are prohibited from registering, on their own accounts, addressable Bank Identifier Code (BIC) holders or reachable parties eligible to participate in TARGET, except for:
– The relevant Eurosystem CB’s own branches.
– Entities listed under Annex I, Part I, Article 4(2), points (a) and (b).
– Participants holding accounts listed in Article 9, paragraph 2, point (d).
– **Implication:**
– This restricts the registration of certain parties by Eurosystem CBs to specific exceptions, ensuring that only authorized entities participate directly in TARGET.
#### **2. Amendment to Article 11(5), Point (b)**
– **Revised Text:**
– Specifies the nature of entitlement to funds held on a TARGET account when such funds do not form part of the estate of an Ancillary System (AS). This is to ensure compliance with the Eurosystem policy on pre-funding by ASs, as published on the ECB’s website.
– **Implication:**
– Clarifies how funds in TARGET accounts are treated, particularly in insolvency situations, reinforcing adherence to existing policies on AS pre-funding.
#### **3. Amendments to Annexes I and III**
##### **Annex I**
– **Article 12: Remuneration of Accounts**
– **Paragraph 1:**
– **Main Cash Accounts (MCAs), Dedicated Cash Accounts (DCAs), and Sub-Accounts:**
– Remunerated at the rate specified in Article 2(3)(b) of Decision (EU) 2024/1209 (ECB/2024/11), unless holding:
– **Minimum Reserves:** Governed by Council Regulation (EC) No 2531/98 and Regulation (EU) 2021/378 (ECB/2021/1).
– **Excess Reserves:** Governed by Decision (EU) 2019/1743 (ECB/2019/31).
– **Paragraph 2:**
– **Overnight Balances on AS Technical Accounts and Guarantee Funds:**
– Balances held on TARGET Instant Payment Settlement (TIPS) AS technical accounts or Real-Time Gross Settlement (RTGS) AS technical accounts used for AS settlement procedure D, and guarantee funds held by European Economic Area (EEA) financial market infrastructures, including those on AS guarantee fund accounts, are remunerated at the rate in Article 2(3)(c) of Decision (EU) 2024/1209.
– **Paragraph 3:**
– **Government Deposits:**
– Remunerated according to Article 2(3)(a) of Decision (EU) 2024/1209 (ECB/2024/11), possibly with a specified rate if applicable.
– **Appendix II: Compensation Procedures**
– **Conditions for Compensation Offers (Paragraph 2(a)):**
– Participants may claim an administration fee and interest compensation if, due to a technical malfunction of TARGET:
– A cash transfer order was not settled on the business day it was accepted or could not be submitted.
– The participant attempted to use contingency processing measures, including requesting support from their central bank.
– **Calculation of Compensation (Paragraph 3):**
– **Interest Compensation (a)(ii):**
– Calculated using the lower of:
– Euro short-term rate (€STR) minus 20 basis points.
– Marginal lending facility rate.
– For cash transfer orders to the deposit facility, the deposit facility rate applies.
– Applied to the amount of the unsettled cash transfer order for each day affected.
– **Recourse to Marginal Lending Facility (b)(ii):**
– Interest compensation is the difference between the marginal lending facility rate and the reference rate.
– Calculated on the amount of recourse due to the technical malfunction.
– **Procedural Rules (Paragraph 4):**
– **Submission Timelines:**
– Claims must be submitted within four weeks of the malfunction.
– Additional information requested must be provided within two weeks.
– **Assessment and Communication:**
– Claims assessed within 14 weeks of the malfunction (or after the reserve maintenance period for specific cases).
– Participants have four weeks to accept or reject compensation offers.
– **Appendix V, Point 6: TARGET Business Day Phases**
– **Updated Table:**
– Provides a detailed schedule of the TARGET business day, including times for settlement processes, maintenance windows, cut-off times, and the handling of various account types such as MCAs, RTGS DCAs, TIPS DCAs, and T2S DCAs (TARGET2-Securities DCAs).
– **Appendix VI: Fees**
– **Section 6: Fees for TIPS DCA Holders**
– **Monthly Fixed Fee:**
– EUR 800 per TIPS DCA, including one reachable BIC.
– **Additional Reachable Parties:**
– EUR 20 per additional reachable party up to 50; no charge beyond that.
– **Transaction Fees:**
– EUR 0.001 per instant payment order or positive recall answer, charged to both debiting and crediting TIPS DCA holders, regardless of settlement.
– **Liquidity Transfer Orders:**
– No fee for transfers from TIPS DCAs to MCAs, RTGS DCAs, sub-accounts, overnight deposit accounts, TIPS AS technical accounts, or T2S DCAs.
– **Section 7: Fees for AS Using TIPS AS Settlement Procedure**
– **Monthly Fixed Fee:**
– EUR 3,000 per TIPS AS technical account.
– **Additional Reachable Parties:**
– EUR 20 per additional reachable party up to 50; no charge beyond that.
– **Transaction Fees:**
– EUR 0.001 per instant payment order or positive recall answer, charged to both debiting and crediting TIPS AS technical account holders, regardless of settlement.
– **Liquidity Transfer Orders:**
– No fee for transfers from TIPS AS technical accounts to TIPS DCAs.
– **Monthly Volume-Based Fee:**
– Based on the gross underlying volume of settled instant payments, near instant payments, and positive recall answers.
– Fees range from EUR 0.00015 to EUR 0.00040 per transaction, decreasing with higher volumes.
##### **Annex III**
– **Definition Updates:**
– **Point (11): “Branch”**
– Defined according to Article 4(1), point (17) of Regulation (EU) No 575/2013 or point (30) of Article 4(1) of Directive 2014/65/EU, except as referred to in Article 9(8) of this Guideline.
– **Point (42): “Near Instant Payments”**
– Defined as a transfer of cash order complying with:
– The European Payment Council’s SEPA Credit Transfer Additional Optional Services (SCT AOS) NL Standard for instant processing of SEPA credit transfers.
– The European Payment Council’s SEPA One-Leg Out Instant Credit Transfer (OCTs Inst) Scheme.
### **Implementation Details**
#### **Article 2: Taking Effect and Implementation**
– **Effectiveness:**
– The Guideline takes effect upon notification to the national central banks (NCBs).
– **Application Date:**
– NCBs must comply with and apply the provisions from 1 December 2024.
– **Notification Requirement:**
– NCBs must notify the ECB of their compliance measures by 31 October 2024.
#### **Article 3: Addressees**
– **Recipients:**
– The Guideline is addressed to all Eurosystem central banks.
### **References to Other Legal Instruments**
– **Decision (EU) 2024/1209 (ECB/2024/11):**
– Establishes the remuneration rates for non-monetary policy deposits.
– **Council Regulation (EC) No 2531/98:**
– Governs the application of minimum reserves by the ECB.
– **Regulation (EU) 2021/378 (ECB/2021/1):**
– Details the calculation and remuneration of minimum reserves.
– **Decision (EU) 2019/1743 (ECB/2019/31):**
– Pertains to the remuneration of excess reserves and certain deposits.
– **Guideline (EU) 2019/671 (ECB/2019/7):**
– Addresses domestic asset and liability management operations by NCBs.
– **Regulation (EU) No 575/2013:**
– Relates to prudential requirements for credit institutions.
– **Directive 2014/65/EU:**
– Concerns markets in financial instruments.
### **Key Provisions Summary**
1. **Account Remuneration Adjustments:**
– Aligns the remuneration of various TARGET accounts with the rates specified in Decision (EU) 2024/1209, ensuring consistency across the Eurosystem.
2. **Clarification on Participant Registration:**
– Restricts the entities that Eurosystem CBs can register on their own accounts within TARGET, enhancing the security and integrity of the system.
3. **Compensation Mechanism Refinements:**
– Updates the conditions under which participants can claim compensation due to technical malfunctions.
– Specifies calculation methods for interest compensation, ensuring fairness and transparency.
4. **Operational Schedule Updates:**
– Provides a detailed timetable for the TARGET business day, reflecting current operational practices and timelines for settlement processes.
5. **Fee Structure Revisions:**
– Introduces new fees for TIPS DCA holders and AS users, promoting efficiency and cost recovery.
– Implements a volume-based fee for ASs, incentivizing higher transaction volumes with decreasing unit costs.
6. **Definition Updates:**
– Ensures that key terms are aligned with current EU legislation, providing clarity and reducing ambiguity.
### **Conclusion**
The amendments introduced by Guideline (EU) 2024/2616 serve to update and refine the operational and procedural aspects of the TARGET system. By aligning account remuneration with recent decisions, clarifying participant registration, refining compensation procedures, updating operational schedules, revising fee structures, and updating definitions, the ECB aims to enhance the efficiency, transparency, and consistency of TARGET operations across the Eurosystem.[:]
