Guideline (EU) 2022/912 of the European Central Bank of 24 February 2022 on a new-generation Trans-European Automated Real-time Gross Settlement Express Transfer system (TARGET) and repealing Guideline 2013/47/EU (ECB/2012/27) (ECB/2022/8)

• Published date: 17 June 2022
• Subject Matter: Economic and Monetary Union,Euro,European Central Bank (ECB)
• Official Gazette Publication: Official Journal of the European Union, L 163, 17 June 2022

17.6.2022 EN Official Journal of the European Union L 163/84

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GUIDELINE (EU) 2022/912 OF THE EUROPEAN CENTRAL BANK

of 24 February 2022

on a new-generation Trans-European Automated Real-time Gross Settlement Express Transfer system (TARGET) and repealing Guideline 2013/47/EU (ECB/2012/27) (ECB/2022/8)

THE GOVERNING COUNCIL OF THE EUROPEAN CENTRAL BANK,

Having regard to the Treaty on the Functioning of the European Union, and in particular the first and fourth indents of Article 127(2) thereof,

Having regard to the Statute of the European System of Central Banks and of the European Central Bank, and in particular Article 3.1 and Articles 17, 18 and 22 thereof,

Whereas:

(1) The Trans-European Automated Real-time Gross settlement Express Transfer system (TARGET2) is governed by Guideline 2013/47/EU of the European Central Bank (ECB/2012/27) (1).

(2) On 20 March 2018 the ‘Collective Agreement’ signed between the central banks operating TARGET2 component systems and the central securities depositories (CSDs) operating on the TARGET2-Securities platform entered into force. This Agreement covers the provision of information and liability in the event of the insolvency of a participant in the systems and defines a common moment of entry for payments and securities transfer orders that are settled in these systems.

(3) On 6 December 2017 the Governing Council approved the T2-T2S Consolidation Project, the objective of which is to consolidate and optimise TARGET2 and TARGET2-Securities (T2S), benefiting from state-of-the-art approaches and technological innovation, enabling a decrease in their combined operational cost, and enhancing liquidity management across the various services. The result of the T2-T2S Consolidation Project is the new-generation Trans-European Automated Real-time Gross settlement Express Transfer system settling in euro in central bank money (TARGET).

(4) From 21 November 2022, TARGET2 should be replaced by TARGET. Therefore, Guideline 2013/47/EU (ECB/2012/27) should be repealed.

(5) As is the case for TARGET2, TARGET should be legally structured as a multiplicity of payment systems, where all TARGET component systems are harmonised to the greatest extent possible.

(6) As is the case for TARGET2, in TARGET there should be three separate levels of governance. Level 1 (Governing Council) should have final competence in relation to TARGET and safeguard its public function. Level 2 (Technical and operational management body) should have subsidiary competence for the management and steering of TARGET, while Level 3 (providing national central banks) should build and operate the TARGET systems for the Eurosystem’s benefit.

(7) TARGET should provide central liquidity management services, including the settlement of central bank operations through main cash accounts (MCAs), large value real-time gross settlement (RTGS) for payments through RTGS dedicated cash accounts (DCAs), cash payments in relation to securities settlement through T2S dedicated cash accounts (T2S DCAs) and settlement of instant payments through TARGET Instant Payment Settlement (TIPS) dedicated cash accounts (TIPS DCAs), and services for ancillary system (AS) settlement through sub-accounts, RTGS AS technical accounts, AS guarantee fund accounts and TIPS AS technical accounts.

(8) In order to ensure clarity and equal treatment, it is appropriate that the provision of these services should be governed by harmonised sets of conditions for participation in TARGET, which should be concluded between each TARGET participant and the national central bank (NCB) operating the respective TARGET component system.

(9) In order to increase competitiveness, TARGET should provide for multiple network service providers (NSPs) responsible for establishing the technical connection to TARGET. TARGET participants should be allowed to enter into a contractual relationship with an NSP within the framework of the concession contract concluded between the Banca d'Italia, as Eurosystem agent and the NSP, or with a subcontractor of the latter, of their choice.

(10) TARGET2 component systems owned and operated by the respective Eurosystem CBs have been collectively identified (2) as a systemically important payment system (SIPS) subject to Regulation of the European Central Bank (EU) No 795/2014 (ECB/2014/28) (3). The respective TARGET component systems, as the payment systems replacing those TARGET2 component systems, should likewise fall within the scope of Regulation (EU) No 795/2014 (ECB/2014/28) and comply with the oversight requirements laid down in that Regulation.

(11) TARGET is essential for the performance of certain basic Eurosystem tasks, i.e. implementing the Union’s monetary policy and promoting the smooth operation of payment systems.

(12) TARGET component systems constitute the legal successors to the corresponding TARGET2 component systems,

HAS ADOPTED THIS GUIDELINE:

SECTION I

GENERAL PROVISIONS

Article 1

Subject matter and scope

TARGET provides the following accounts for settlement in euro in central bank money,

(a) Main cash accounts (MCAs) for the settlement of operations with central banks;

(b) Real-time gross settlement dedicated cash accounts (RTGS DCAs) and sub-accounts for real-time interbank and customer payments, and settlement of transactions with ancillary systems (AS);

(c) Real-time gross settlement ancillary system technical accounts (RTGS AS technical accounts), TARGET Instant Payment Settlement (TIPS) ancillary system technical accounts (TIPS AS technical accounts) and ancillary systems guarantee funds accounts (AS guarantee funds accounts) for the settlement of transactions with AS;

(d) TARGET2-Securities dedicated cash accounts (T2S DCAs) for cash payments in relation to securities transactions; and

(e) TARGET instant payment settlement dedicated cash accounts (TIPS DCAs) for the settlement of instant payments.

Article 2

Definitions

For the purposes of this Guideline each of the following terms shall have the meaning ascribed to it in Annex III:

(1) ‘account monitoring group’;

(2) ‘addressable BIC holder’;

(3) ‘ancillary system’ (AS);

(4) ‘ancillary system guarantee funds account’ (AS guarantee funds account);

(5) ‘ancillary system settlement procedure’ (AS settlement procedure);

(6) ‘ancillary system transfer order’ (AS transfer order);

(7) ‘auto-collateralisation’;

(8) ‘automated liquidity transfer order’;

(9) ‘available liquidity’;

(10) ‘banking group’;

(11) ‘branch’;

(12) ‘broadcast message’;

(13) ‘business day’ or ‘TARGET business day’;

(14) ‘Business Identifier Code’;

(15) ‘capacity opinion’;

(16) ‘cash transfer order’;

(17) ‘central bank’ (CB);

(18) ‘central bank operation’;

(19) ‘connected NCB’;

(20) ‘Contingency Solution’;

(21) ‘credit institution’;

(22) ‘credit memorandum balance’ (CMB);

(23) ‘cross-system settlement’;

(24) ‘dedicated cash account’ (DCA);

(25) ‘deposit facility rate’;

(26) ‘deposit facility’;

(27) ‘euro area NCB’;

(28) ‘European Payments Council’s SEPA Instant Credit Transfer (SCT Inst) scheme’ or ‘SCT Inst Scheme’;

(29) ‘Eurosystem CB’;

(30) ‘event of default’;

(31) ‘guarantee funds’;

(32) ‘insolvency proceedings’;

(33) ‘instant payment order’;

(34) ‘instructing party’;

(35) ‘intraday credit’;

(36) ‘investment firm’;

(37) ‘Level 3 NCBs’;

(38) ‘liquidity transfer order’;

(39) ‘marginal lending facility rate’

(40) ‘marginal lending facility’;

(41) ‘mobile proxy look-up (MPL) service’;

(42) ‘near instant payment’;

(43) ‘network service provider’;

(44) ‘non-settled cash transfer order’;

(45) ‘participant’;

(46) ‘payee’;

(47) ‘payer’;

(48) ‘payment order’;

(49) ‘positive recall answer’;

(50) ‘public sector body’;

(51) ‘reachable party’;

(52) ‘Real-time gross settlement ancillary system settlement procedure’ (RTGS AS settlement procedure);

(53) ‘Real-time gross settlement ancillary system technical account’;

(54) ‘recall request’;

(55) ‘rule-based liquidity transfer order’;

(56) ‘settlement bank account group’;

(57) ‘settlement bank’;

(58) ‘suspension’;

(59) ‘TARGET account’;

(60) ‘TARGET component system’;

(61) ‘TARGET coordinator’;

(62) ‘TARGET Instant Payment Settlement (TIPS) ancillary system settlement procedure’ (TIPS AS settlement procedure);

(63) ‘TARGET Instant Payment Settlement (TIPS) ancillary system technical account’ (TIPS AS technical account);

(64) ‘TARGET settlement manager’;

(65) ‘TARGET2-Securities’ (T2S);

(66) ‘technical malfunction of TARGET’.

Article 3

TARGET component systems

1. TARGET is legally structured as a multiplicity of payment systems which make up the component systems of TARGET.

2. Each Eurosystem CB shall operate its own TARGET component system.

3...