Decision of the European Central Bank of 16 November 2011 establishing detailed rules and procedures for implementing the eligibility criteria for central securities depositories to access TARGET2-Securities services (ECB/2011/20) (2011/789/EU)

• Published date: 02 December 2011
• Date of Signature: 01 April 2011
• Subject Matter: système européen de banques centrales,dispositions financières,Banque centrale européenne (BCE),sistema europeo di banche centrali,disposizioni finanziarie,Banca centrale europea (BCE),sistema europeo de bancos centrales,disposiciones financieras,Banco Central Europeo (BCE),Asociación Europea de Libre Comercio (AELC)
• Official Gazette Publication: Journal officiel de l’Union européenne, L 319, 2 décembre 2011,Gazzetta ufficiale dell’Unione europea, L 319, 2 dicembre 2011,Diario Oficial de la Unión Europea, L 319, 2 de diciembre de 2011,Diario Oficial de la Unión Europea, L 171, 30 de junio de 2011

02011D0020 — EN — 10.07.2019 — 001.001

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►B DECISION OF THE EUROPEAN CENTRAL BANK of 16 November 2011 establishing detailed rules and procedures for implementing the eligibility criteria for central securities depositories to access TARGET2-Securities services (ECB/2011/20) (2011/789/EU) (OJ L 319 2.12.2011, p. 117)

Amended by:

		Official Journal
		No	page	date
►M1	DECISION (EU) 2019/1006 OF THE EUROPEAN CENTRAL BANK of 7 June 2019	L 163	103	20.6.2019

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DECISION OF THE EUROPEAN CENTRAL BANK

of 16 November 2011

establishing detailed rules and procedures for implementing the eligibility criteria for central securities depositories to access TARGET2-Securities services

(ECB/2011/20)

(2011/789/EU)

Article 1

Definitions

For the purposes of this Decision:

(1) ‘assessment report’ means written documentation containing: (a) a report drawn up by the relevant competent authorities assessing a CSD’s compliance with CSD access criterion 2; and (b) a CSD self-assessment of its compliance with CSD access criteria 1, 3, 4 and 5;

(2) ‘central bank (CB)’ means the European Central Bank, the national central banks (NCBs) of the Member States whose currency is the euro, the NCBs of the Member States whose currency is not the euro (hereinafter ‘non-euro area NCBs’), any European Economic Area (EEA) central bank or relevant competent authority (hereinafter ‘EEA central bank’) and any central bank or relevant competent authority of a country outside the EEA (hereinafter ‘other central bank’), where the currency of such a non-euro area NCB, EEA or other central bank is considered eligible in accordance with Article 18 of Guideline ECB/2010/2;

(3) ‘CSD access criterion 1’ means the criterion laid down in Article 15(1)(a) of Guideline ECB/2010/2, i.e. that CSDs are eligible for access to T2S services provided that they have been notified to the European Securities and Markets Authority pursuant to Article 10 of Directive 98/26/EC or, in the case of a CSD from a non-EEA country, they operate under a legal and regulatory framework that is equivalent to that in force in the Union;

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(4) ‘CSD access criterion 2’ means the criterion laid down in Article 15(1)(b) of Guideline ECB/2012/13 ( 1 ), i.e. that CSDs are eligible for access to T2S services provided that they have been positively assessed by the competent authorities against (i) Regulation (EU) No 909/2014 of the European Parliament and of the Council ( 2 ), for CSDs located in a European Economic Area (EEA) country, or (ii) the Principles for Financial Market Infrastructures of the Committee on Payment and Market Infrastructures and the International Organisation of Securities Commissions ( 3 ) or a legal framework implementing those principles, for CSDs located in a non-EEA country;

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(5) ‘CSD access criterion 3’ means the criterion laid down in Article 15(1)(c) of Guideline ECB/2010/2, i.e. that CSDs are eligible for access to T2S services provided that they make each security/International Securities Identification Number for which they are an issuer CSD, or technical issuer CSD, available to other CSDs in T2S upon request;

(6) ‘CSD access criterion 4’ means the criterion laid down in Article 15(1)(d) of Guideline ECB/2010/2, i.e. that CSDs are eligible for access to T2S services provided that they commit to offer to other CSDs in T2S basic custody service on a non-discriminatory basis;

(7) ‘CSD access criterion 5’ means the criterion laid down in Article 15(1)(e) of Guideline ECB/2010/2, i.e. that CSDs are eligible for access to T2S services provided that they commit towards other CSDs in T2S to carry out their central bank money settlement in T2S if the currency is available in T2S;

(8) ‘relevant competent authorities’ means the CBs and the regulators with oversight and/or supervisory competence over a specific CSD and responsible for assessing CSDs against applicable recognised standards;

(9) ‘directly connected party’ means a T2S Party with a technical facility allowing it to access T2S and use its securities settlement services without the need for a CSD to act as a technical interface;

(10) ‘T2S Party’ means a legal entity or, in some markets, an individual, that has a contractual relationship with a CSD in T2S for the processing of its settlement-related activities in T2S, and does not necessarily hold a securities account with the CSD;

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(11) ‘Market Infrastructure Board’ or ‘MIB’ means the Eurosystem governance body established pursuant to Decision (EU) 2019/166 of the European Central Bank (ECB/2019/3) ( 4 );

(12) ‘Advisory Group on Market Infrastructures for Securities and Collateral’ or ‘AMI SeCo’ has the same meaning as in point (25) of Article 2 of Guideline ECB/2012/13;

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(13) ‘Currency Participation Agreement (CPA)’ means an agreement to be entered into by the Eurosystem and a non-euro area NCB, or an authority responsible for a currency other than the euro, for the purpose of settling securities transaction in central bank money in currencies other than the euro.

Article 2

Subject matter and scope

1. The five criteria determining the eligibility of CSDs to access T2S services laid down in Article 15 of Guideline ECB/2010/2 (hereinafter the ‘five CSD access criteria’) shall be implemented in accordance with the procedures laid down in Articles 3 to 5 of this Decision and the rules in the Annex.

2. This Decision shall not apply to directly connected parties having a legal relationship with the CSDs.

Article 3

Application procedure

1. To apply for T2S services, a CSD shall submit: (a) an application to the Governing Council; and (b) at the time of its migration to T2S, ►M1 a self-assessment report ◄ .

2. ►M1 The self-assessment report ◄ shall provide evidence that the CSD complies with the five CSD access criteria at the time of its migration to T2S, and state the degree of implementation of each CSD access criterion according to the following categories: compliant, partly compliant and not applicable, and shall set out the CSD’s reasons, explanations and relevant evidence.

3. The ►M1 MIB ◄ shall submit a proposal to the Governing Council, based on the abovementioned documentation, on a CSD’s application to access T2S services. To prepare its proposal, the ►M1 MIB ◄ may request clarifications from or submit questions to the applying CSD.

4. Following submission of the proposal by the ►M1 MIB ◄ , the Governing Council shall make a decision on a CSD’s application and communicate it in writing to that CSD no later than 2 months following: (a) the date of receipt of the application; or (b) the date of receipt of the reply to any request for clarifications or submission of questions by the ►M1 MIB ◄ under paragraph 3. Where the Governing Council rejects an application, it shall give reasons for doing so.

Article 4

Procedure for obtaining a derogation from CSD access criterion 5

1. A CSD may submit a request for a derogation from CSD access criterion 5 based on its specific operational or technical situation.

2. For a derogation request to be assessed, the CSD shall submit a request to the ►M1 MIB ◄ and provide evidence of the following:

(a) the derogation is for a very limited amount of settlement volume as a proportion of the total average daily delivery-versus-payment instructions received over a month at the CSD, and the cost of settling these operations in T2S would be excessive for the CSD;

(b) the CSD has set technical and operational safeguards ensuring that the derogation will remain within the threshold set out in point (a);

(c) the CSD has made every effort to meet CSD access criterion 5.

3. Following receipt of such request for a derogation:

(a) the ►M1 MIB ◄ shall submit the CSD’s request and its pre-assessment to the ►M1 AMI SeCo ◄ ;

(b) the ►M1 AMI SeCo ◄ shall provide the ►M1 MIB ◄ with advice on the request without delay and in due time for it to be...