Decision (EU) 2023/2532 of the European Central Bank of 9 November 2023 amending Decision (EU) 2022/911 concerning the terms and conditions of TARGET-ECB (ECB/2022/22) (ECB/2023/27)

Official Journal EN of the European Union L series 2023/2532 16.11.2023 DECISION (EU) 2023/2532 OF THE EUROPEAN CENTRAL BANK of 9 November 2023 amending Decision (EU) 2022/911 concerning the terms and conditions of TARGET-ECB (ECB/2022/22) (ECB/2023/27) THE EXECUTIVE BOARD 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, 22 and 23 thereof,

Whereas:

(1) On 24 February 2022, the Governing Council adopted Guideline (EU) 2022/912 of the European Central Bank (ECB/2022/8)(1), which provides for the start of operations of a new-generation Trans-European Automated Real-time Gross settlement Express Transfer system (TARGET).

(2) On 7 September 2023, the Governing Council adopted Guideline (EU) 2023/2415 of the European Central Bank (ECB/2023/22)(2), which amends Guideline (EU) 2022/912 (ECB/2022/8). The purpose of the amendments

was to: (a) clarify certain aspects regarding the use of the trademarks relating to TARGET services; (b) further specify the requirement for the Eurosystem central banks (Eurosystem CBs) to ensure that no accounts other than TARGET accounts are opened for participants eligible to participate in TARGET for the purpose of providing services falling within the scope of that Guideline; (c) introduce measures to mitigate for the event of failure of a Eurosystem CB’s connection to TARGET; (d) establish the mandatory use of the Contingency Solution from 21 March 2025 for all real-time gross settlement dedicated cash account holders and ancillary systems participating in TARGET; (e) introduce clarifications relating to the reachable parties designated by the ancillary systems that use TARGET Instant Payment Settlement (TIPS); (f) introduce the revised TIPS pricing policy; and (g) introduce certain editorial revisions.

(3) Amendments made to Guideline (EU) 2022/912 (ECB/2022/8) which affect the terms and conditions of TARGET- ECB should be reflected in Decision (EU) 2022/911 of the European Central Bank (ECB/2022/22)(3).

(4) In order to ensure alignment with the provisions of Guideline (EU) 2023/2415 (ECB/2023/22), this Decision should enter into force on 20 November 2023.

(5) Therefore, Decision (EU) 2022/911 (ECB/2022/22) should be amended accordingly,

HAS ADOPTED THIS DECISION:

Article 1 Amendments Decision (EU) 2022/911 (ECB/2022/22) is amended as follows:

(1) in Article 3, paragraph 2 is replaced by the following:

(1) 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 ECB/2012/27 (ECB/2022/8) (OJ L 163, 17.6.2022, p. 84).

(2) Guideline (EU) 2023/2415 of the European Central Bank of 7 September 2023 amending Guideline (EU) 2022/912 on a new- generation Trans-European Automated Real-time Gross Settlement Express Transfer system (TARGET) (ECB/2022/8) (ECB/2023/22) (OJ L, 2023/2415, 27.10. 2023, ELI: http://data.europa.eu/eli/guideline/2023/2415/oj).

(3) Decision (EU) 2022/911 of the European Central Bank of 19 April 2022 concerning the terms and conditions of TARGET-ECB and repealing Decision ECB/2007/7 (ECB/2022/22) (OJ L 163, 17.6.2022, p. 1).

ELI: http://data.europa.eu/eli/dec/2023/2532/oj 1/9EN OJ L, 16.11.2023 ‘2. In accordance with Article 9(2) of Guideline (EU) 2022/912 (ECB/2022/8), from the date that the operation of the Eurosystem Collateral Management System (ECMS) commences, as communicated on the ECB’s website, the ECB shall not open accounts other than TARGET accounts for participants eligible to participate in TARGET for the purpose of providing services falling within the scope of Guideline (EU) 2022/912 (ECB/2022/8), with the exception of accounts that are used to hold seized funds or funds pledged to a third-party creditor or funds referred to in Article 3(1)(d) of Regulation (EU) 2021/378 of the European Central Bank (ECB/2021/1) (*).

_____________ (*) Regulation (EU) 2021/378 of the European Central Bank of 22 January 2021 on the application of minimum reserve requirements (ECB/2021/1) (OJ L 73, 3.3.2021, p. 1).’;

(2) Annex I to Decision (EU) 2022/911 (ECB/2022/22) is amended in accordance with Annex I to this Decision;

(3) Annex II to Decision (EU) 2022/911 (ECB/2022/22) is amended in accordance with Annex II to this Decision;

(4) Annex III to Decision (EU) 2022/911 (ECB/2022/22) is amended in accordance with Annex III to this Decision.

Article 2 Entry into force This Decision shall enter into force on 20 November 2023.

Done at Frankfurt am Main, 9 November 2023.

The President of the ECB Christine LAGARDE 2/9 ELI: http://data.europa.eu/eli/dec/2023/2532/ojEN OJ L, 16.11.2023 ANNEX I Annex I to Decision (EU) 2022/911 (ECB/2022/22) is amended as follows:

(1) Part I is amended as follows:

(a) in Article 18, paragraph 4 is replaced by the following: ‘4. The Eurosystem provides a Contingency Solution for use if the events described in paragraph 1 occur.

Connection to and use of the Contingency Solution may be made on request by a participant, and shall be

mandatory in the following cases:

(a) for participants considered by the ECB to be critical and for participants that settle very critical transactions as set out in Appendix IV;

(b) with effect from 21 March 2025, for all AS and for all RTGS DCA holders.’;

(b) Article 23 is replaced by the following: ‘Article 23 Duration and ordinary termination of participation and closure of accounts

1. Without prejudice to Article 24, participation in TARGET-ECB shall be for an indefinite period of time.

2. A participant may terminate any of the following at any time giving 14 business days’ notice thereof, unless it

agrees a shorter notice period with the ECB:

(a) its entire participation in TARGET-ECB;

(b) one or more of its DCAs, RTGS AS technical accounts and/or TIPS AS technical accounts;

(c) one or more of its MCAs, except where the participant is an institution falling within the scope of Article 1 of Regulation (EU) 2021/378 (ECB/2021/1), in which case the participant shall continue to hold at least one MCA for the purpose of complying with the applicable minimum reserve requirements, provided that the participant continues to comply with Articles 4 and 5.

3. The ECB may terminate any of the following at any time giving three months’ notice thereof, unless it agrees

a different notice period with the relevant participant:

(a) a participant’s entire participation in TARGET-ECB;

(b) one or more of a participant’s DCAs, RTGS AS technical accounts or TIPS AS technical accounts;

(c) one or more of a participant’s MCAs, provided that the participant continues to hold at least one MCA.

4. On termination of participation, the confidentiality duties laid down in Article 27 shall remain in force for a period of five years starting on the date of termination.

5. On termination of participation, the ECB shall close all TARGET accounts of the participant concerned in accordance with Article 25.’;

(c) in Article 30, the following paragraph 1a is inserted: ‘1a. From 21 March 2026, participants that are considered critical by the ECB shall, in addition to the technical connection referred to in paragraph 1, establish a second technical connection for contingency purposes to TARGET-ECB through a second NSP in accordance with the modalities set out in paragraph 1. The second technical connection may be via the second NSP’s low volume user to application (U2A) access.’;

ELI: http://data.europa.eu/eli/dec/2023/2532/oj 3/9EN OJ L, 16.11.2023

(2) Part II is amended as follows:

(a) in Article 2, paragraph 3 is replaced by the following: ‘3. An MCA holder acting as co-manager shall fulfil the obligations of the MCA holder of the co-managed MCA under Part I, Article 5(1), point (a), Part I, Article 10(4), and Part I, Article 30(1) and (1a).’;

(b) in Article 2, paragraph 4 is replaced by the following: ‘4. The MCA holder of a co-managed MCA shall fulfil the obligations of a participant under Part I and Part II in respect of the co-managed MCA. In the event that the MCA holder does not have a direct technical connection to TARGET, Part I, Article 5(1), point (a), Part I, Article 10(4), and Part I, Article 30(1) and (1a) shall not apply.’;

(3) Part VII is amended as follows:

(a) in Article 1, paragraph 5 is replaced by the following: ‘5. An ancillary system may send instant payment orders, and positive recall answers to any TIPS DCA holder or TIPS AS technical account holder. An ancillary system shall receive and process instant payment orders, recall requests and positive recall answers from any TIPS DCA holder or TIPS AS technical account holder.’;

(b) in Article 7, paragraph 1 is replaced by the following: ‘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 and, if they are addressable in TARGET as RTGS DCA holders, addressable BIC holders or as entities referred to in Part III, Article 3(1), point (a) of Guideline (EU) 2022/912 (ECB/2022/8), having been authorised to use an RTGS DCA by way of multi-addressee access, they shall hold a TIPS DCA or be reachable via a TIPS DCA.’;

(4) in Appendix VI, section 6 (FEES FOR TIPS DCA HOLDERS) is replaced by the following: ‘6. FEES FOR TIPS DCA HOLDERS

1. Until 31 December 2023, the following fees apply:

(a) Fees for the operation of TIPS DCAs shall be charged to the party indicated as shown in the following table:

Item Rule applied Fee per item (EUR)

Settled instant payment order Party to be charged: the owner of the TIPS DCA to 0,002 be debited

Unsettled instant payment order Party to be charged: the owner of the TIPS DCA to 0,002 be debited

Settled positive recall answer Party to be charged: the owner of the TIPS DCA to 0,002 be credited

Unsettled positive recall answer Party to be charged: the owner of the TIPS DCA to 0,002 be credited

(b) 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.

2. With effect from 1 January 2024, fees for the operation of TIPS DCAs shall be charged as follows:

(a) For each TIPS DCA a monthly fixed fee of EUR 800 shall be charged to the holder of the TIPS DCA;

4/9 ELI: http://data.europa.eu/eli/dec/2023/2532/ojEN OJ L, 16.11.2023

(b) For each reachable party designated by the TIPS DCA holder, up to a maximum of 50 reachable parties, a monthly fixed fee of EUR 20 shall be charged to the designating TIPS DCA holder. No fee shall be charged for the fifty-first or any subsequent reachable party;

(c) For each instant payment order or positive recall answer accepted by the [insert name of CB] as set out in Part I, Article 17, a fee of EUR 0,001 shall be charged to both the holder of the TIPS DCA to be debited and to the holder of the TIPS DCA or TIPS AS technical account to be credited, whether or not the instant payment order or positive recall answer settles;

(d) No fee shall be charged for liquidity transfer orders from TIPS DCAs to MCAs, RTGS DCAs, sub-accounts, overnight deposit accounts, TIPS AS technical accounts or T2S DCAs.’;

(5) in Appendix VI, section 7 (FEES FOR AS USING TIPS AS SETTLEMENT PROCEDURE) is replaced by the following: ‘7. FEES FOR AS USING TIPS AS SETTLEMENT PROCEDURE

1. Until 31 December 2023, the following fees apply:

(a) 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:

Item Rule applied Fee per item (EUR)

Settled instant payment order Party to be charged: the owner of the TIPS AS 0,002 technical account to be debited

Unsettled instant payment order Party to be charged: the owner of the TIPS AS 0,002 technical account to be debited

Settled positive recall answer Party to be charged: the owner of the TIPS AS 0,002 technical account to be credited

Unsettled positive recall answer Party to be charged: the owner of the TIPS AS 0,002 technical account to be credited

(b) Liquidity transfer orders from TIPS AS technical accounts to TIPS DCAs shall be free of charge;

(c) 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.

2. With effect from 1 January 2024, fees for the use by an AS of the TIPS AS settlement procedure shall be charged as

follows:

(a) For each TIPS AS technical account a monthly fixed fee of EUR 3 000shall be charged to the holder of the TIPS AS technical account;

(b) For each reachable party designated by the TIPS AS technical account holder, up to a maximum of 50 reachable parties, a monthly fixed fee of EUR 20 shall be charged to the designating TIPS AS technical account holder. No fee shall be charged for the fifty-first or any subsequent reachable party;

ELI: http://data.europa.eu/eli/dec/2023/2532/oj 5/9EN OJ L, 16.11.2023

(c) For each instant payment order or positive recall answer accepted by the [insert name of CB] as set out in Part I, Article 17, a fee of EUR 0,001 shall be charged to both the holder of the TIPS AS technical account to be debited and to the holder of the TIPS AS technical account or TIPS DCA to be credited, whether or not the instant payment order or positive recall answer settles;

(d) No fee shall be charged for liquidity transfer orders from TIPS AS technical accounts to TIPS DCAs;

(e) 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. 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 unit fee per settled instant payment, near instant payment or settled positive recall answer for the previous month according to the following

table:

Reported gross underlying volume From To Unit Fee (EUR) 0 10 000 000 0,00040 10 000 001 25 000 000 0,00030 25 000 001 100 000 000 0,00020 100 000 001 0,00015.’.

6/9 ELI: http://data.europa.eu/eli/dec/2023/2532/ojEN OJ L, 16.11.2023 ANNEX II Annex II to Decision (EU) 2022/911 (ECB/2022/22) is replaced by the following: ‘ANNEX II TARGET GOVERNANCE ARRANGEMENTS Level 2 — Technical and operational Level 1 — Governing Council Level 3 — Level 3 NCBs management body

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

2. Pricing policy — Deciding on pricing structure/pri­ — Regular review of pricing structure/ pri­ (Not applicable) cing policy cing policy — Deciding on the pricing envelopes — Drafting and monitoring of pricing envelopes

3. Financing — Deciding on rules for the financial — Drafting proposals for the main features — Providing cost figures to Level regime of TARGET of the financial regime as decided by 2 for the service provision — Deciding on the financial envelopes Level 1 — Drafting and monitoring of financial envelopes — Approval and/or initiation of instal­ ments paid by Eurosystem CBs to Level 3 for provision of services — Approval and/or initiation of reimburse­ ment of fees to the Eurosystem CBs

4. Service level Deciding on the level of service Verifying that the service was delivered in — Delivering the service in accordance with the agreed Service level accordance with the agreed Service level

5. Operation — Deciding on the rules applicable to inci­ — Managing TARGET based on dents and crisis situations the agreement referred to in — Monitoring business developments Article 7(6) of Guideline ECB/2022/8

6. Change and release management Deciding in case of escalation — Approving the Change requests — Assessing the Change — Approving the release scoping Requests — Approving the release plan and its execu­ — Implementing the Change tion requests in line with the agreed plan

ELI: http://data.europa.eu/eli/dec/2023/2532/oj 7/9EN OJ L, 16.11.2023 Level 2 — Technical and operational Level 1 — Governing Council Level 3 — Level 3 NCBs management body

7. Risk management — Approving the TARGET Risk Man­ — Conducting the risk management follow­ — Conducting the risk manage­ agement Framework and the risk ing the roles defined in the applicable risk ment following the roles tolerance for TARGET as well as management frameworks defined in the applicable risk accepting remaining risks — Conducting risk analysis and follow-up management frameworks and — Assuming ultimate responsibility according to the allocated risk ownership related to Level 3 activities for the activities of the first and sec­ — Ensuring that all risk management — Conducting risk analysis and ond lines of defence arrangements are maintained and kept- follow-up according to the — Establishing the organisational up-to date allocated risk ownership structure for roles and responsibil­ — Approving and reviewing the business — Providing the necessary infor­ ities related to risk and control continuity plan as outlined in the rele­ mation for risk analysis vant operational documentation according to Level 1/Level 2 requests and the risk manage­ ment frameworks in place

8. System rules — Establishing and ensuring adequate (Not applicable) (Not applicable)’. implementation of the European System of Central Banks’ legal framework for TARGET including the Harmonised Conditions for participation in TARGET 8/9 ELI: http://data.europa.eu/eli/dec/2023/2532/ojEN OJ L, 16.11.2023 ANNEX III Annex III to Decision (EU) 2022/911 (ECB/2022/22) is amended as follows:

(1) point 28 is replaced by the following: ‘(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 scheme participants, allowing payment services providers in the Single Euro Payments Area (SEPA) to offer an automated SEPA-wide euro instant credit transfer product;’;

(2) point 54 is replaced by the following: ‘(54) “recall request” means a message from an RTGS DCA holder, a TIPS DCA holder or a TIPS AS technical account holder requesting reimbursement of a settled payment order or instant payment order respectively;’.

ELI: http://data.europa.eu/eli/dec/2023/2532/oj 9/9