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)

The ECB’s TARGET component system (TARGET-ECB) is limited to the following operations:

The ECB may only accept the following customers and may act on their behalf:

Participation in TARGET-ECB shall be exclusively governed by the Conditions for participation in TARGET-ECB set out in Annex I.

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) ([^E0001]).

Participation in TARGET-ECB shall also be governed by Article 11 of Guideline (EU) 2022/912 (ECB/2022/8), where relevant.

The following Appendices form an integral part of these Conditions:

In the event of any conflict or inconsistency between the content of any appendix and the content of any other provision in these Conditions, the latter shall prevail.

TARGET is legally structured as a multiplicity of payment systems composed of all TARGET component systems, each of which is designated as a ‘system’ under the relevant national law implementing Directive 98/26/EC of the European Parleament and of the Council ([^E0002]). TARGET-ECB is designated as a ‘system’ under § 1(16) of the Kreditwesengesetz (KWG).

TARGET comprises payment systems in euro that settle in central bank money and provide central liquidity management services, real-time gross settlement for payments and services for AS settlement, and enable cash payments in relation to securities settlement and the settlement of instant payments.

TARGET provides:

In order to become a participant in TARGET-ECB, an eligible entity as described in Article 4 shall fulfil the following requirements:

Applicants shall apply to the ECB, as a minimum enclosing the following documents/information:

Applicants which are already TARGET participants and apply for a new account as described in: (i) Part III (RTGS-DCA); (ii) Part IV (T2S DCA); (iii) Part V (TIPS DCA); (iv) Part VI (RTGS AS technical account); and/or (v) Part VII (TIPS AS technical account), shall comply with the provisions of paragraphs 1 and 2 to the extent relevant for the new account applied for.

The ECB may also request any additional information it deems necessary to decide on an application to open a TARGET account.

The ECB shall reject the application to participate if:

The ECB shall communicate its decision on the application to become a participant in TARGET-ECBto the applicant participant within one month of the ECB’s receipt of the application. Where the ECB requests additional information pursuant to paragraph 4, the decision shall be communicated within one month of the ECB’s receipt of this information from the applicant. Any rejection decision shall contain reasons for the rejection.

To the extent technically possible, a participant may give access to its TARGET accounts to one or more entities it designates, for the purposes of submitting cash transfer orders and performing other actions.

Cash transfer orders submitted or funds received by the entities designated by a participant as referred to in paragraph 1 shall be deemed to have been submitted or received by that participant itself.

The participant shall be bound by such cash transfer orders and any other action taken by the entity or entities referred to in paragraph 1, regardless of the content of, or any non-compliance with, the contractual or other arrangements between that participant and such entity.

The ECB shall identify billable items according to Appendix VI and shall allocate each of them to the participant from which that billable item originates.

Any fee payable in relation to a cash transfer order submitted by or cash transfer received by an AS, irrespective of whether it uses the RTGS AS settlement procedures or an RTGS DCA, shall be exclusively charged to that AS.

Billable items generated by actions taken by the designated entities referred in Article 7, as well as by central banks acting on behalf of a participant, shall be allocated to the participant.

The ECB shall issue separate invoices to the participant for the relevant services described in: (i) Part III (RTGS-DCA); (ii) Part IV (T2S DCA); (iii) Part V (TIPS DCA); (iv) Part VI (RTGS AS settlement procedures); and (v) Part VII (TIPS AS settlement procedure).

The ECB shall settle each invoice by means of a direct debit of an MCA held by the participant, unless the participant has designated another participant in TARGET (which may be in TARGET-ECB or another component system) as a paying agent and instructed the ECB to debit the MCA of that paying agent. Such an instruction shall not release the participant from its obligation to pay each invoice.

Where a paying agent has been designated, the participant will provide the ECB with evidence that the paying agent has agreed to act in that role.

For the purposes of this Article, each AS shall be treated separately, even if two or more of them are operated by the same legal entity, and irrespective of whether or not the AS has been designated under Directive 98/26/EC. In the case of an AS that has not been designated under Directive 98/26/EC, it shall be identified as an AS by reference to the following criteria: (a) it is a formal arrangement, based on a contractual or legislative instrument, e.g. an agreement among the participants and the system operator; (b) it has multiple membership; (c) it has common rules and standardised arrangements; and (d) is for the purpose of clearing, netting and/or settlement of payments and/or securities between the participants.

Upon the request of the participant the ECB shall create a billing group to allow its members to benefit from the degressive pricing applicable to RTGS DCAs. The billing group may only include RTGS DCA holders belonging to the same banking group, from one or more TARGET component systems.

Upon the request of an RTGS DCA holder the ECB shall add that RTGS DCA holder to or delete it from a billing group which may be in TARGET-ECB or in any other TARGET component system. The RTGS DCA holder shall inform all other members of the billing group of such a request prior to making it.

RTGS DCA holders included in a billing group shall be invoiced individually as set out in Article 8.

The ECB shall offer the services described in Parts II, III, IV, V, VI and VII of these Conditions where a participant has opted for and been granted an account as referred to therein. Save where otherwise provided in these Conditions or required by law, the ECB shall use all reasonable means within its power to perform its obligations under these Conditions, without guaranteeing a result.

The ECB is the provider of services pursuant to these Conditions. Acts and omissions of the Level 3 NCBs shall be considered as acts and omissions of the ECB, for which it shall assume liability in accordance with Article 21. Participation pursuant to these Conditions shall not create a contractual relationship between participants and the Level 3 NCBs when any of the latter acts in its capacity as a Level 3 NCB. Instructions, messages or information which a participant receives from, or sends to, TARGET in relation to the services provided under these Conditions shall be deemed to be received from, or sent to, ECB.

The participant shall pay to the ECB fees in accordance with Article 8.

The participant shall ensure that it is technically connected to TARGET-ECB in accordance with TARGET operating schedule set out in Appendix V. This obligation may be fulfilled through a designated entity referred to in Article 7.

The participant shall represent and warrant to the ECB that the performance of its obligations under these Conditions does not breach any law, regulation or by-law applicable to it or any agreement by which it is bound.

The participant shall pay any applicable stamp duties or other documentary taxes or duties, if applicable, as well as any other costs the participant incurs in opening, maintaining or closing its TARGET account.

In performing their obligations and exercising their rights under these Conditions, the ECB and participants shall cooperate closely to ensure the stability, soundness and safety of TARGET-ECB. They shall provide each other with any information or documents relevant for the performance of their respective obligations and the exercise of their respective rights under these Conditions, without prejudice to any banking secrecy obligations.

The ECB shall establish and maintain a system support desk to assist participants in relation to difficulties arising in connection with system operations.

Up-to-date information on the operational status of each service shall be available on a TARGET Information System (TIS) on a dedicated webpage on the ECB’s website.

The ECB may communicate system relevant messages to participants by means of a broadcast message or, if this means is not available, by any other appropriate means of communication.

Participants shall update in a timely manner existing reference data collection forms and submit new reference data collection forms to the ECB. Participants shall verify the accuracy of information relating to them that is entered into TARGET-ECB by the ECB.

The participant hereby authorises the ECB to communicate to the Level 3 NCBs any information relating to participants which the Level 3 NCBs may need, in accordance with the agreements between the Level 3 NCBs and the Eurosystem CBs governing the provision of the services to be provided by the Level 3 NCBs.

Participants shall inform the ECB without undue delay about any change in their legal capacity and relevant legislative changes affecting issues covered by the country opinion as set out in the terms of reference given in Appendix III.

The ECB may at any time request an update or renewal of the country or capacity opinions referred to in Article 5(1), points (d) and (e).

Participants shall immediately inform the ECB if an event of default occurs in relation to themselves or if they are subject to crisis prevention measures or crisis management measures within the meaning of Directive 2014/59/EU of the European Parliament and of the Council ([^E0003]) or any other equivalent applicable legislation.

MCAs, DCAs and sub-accounts shall be remunerated at the rate set out in Article 2(3), point (b), of Decision (EU) 2024/1209 of the European Central Bank (ECB/2024/11) ([^E0004]).

Overnight balances held on a TIPS AS technical account or on an RTGS AS technical account for AS settlement procedure D, and guarantee funds held by EEA financial market infrastructures, including those held on an AS guarantee fund account, shall be remunerated at the rate set out in Article 2(3), point (c), of Decision (EU) 2024/1209 (ECB/2024/11).

Participants shall monitor and manage the liquidity on their accounts in line with the TARGET operating schedule as set out in Appendix V and perform transaction-level reconciliation at least once a day. This obligation may be fulfilled through a designated entity referred to in Article 7.

The participant shall make use of the tools provided by the ECB for the purpose of account reconciliation, in particular the daily statement of account which is made available to each participant. This obligation may be fulfilled through a designated entity referred to in Article 7.

Participants shall immediately inform the ECB in the event that a mismatch occurs in relation to any of their accounts.

The participant may set floor and ceiling amounts on its MCA or DCAs.

The participant may choose to receive a notification if the floor or ceiling amount is breached. In addition, for MCAs, RTGS DCAs or TIPS DCAs the participant may opt for the breach to trigger a rule-based liquidity transfer order.

The settlement of a liquidity transfer order shall not trigger a check of whether the floor or ceiling amount has been breached.

An MCA holder may create one or more account monitoring groups for the purpose of monitoring liquidity on several MCAs or DCAs and will become the leader party for any account monitoring group that it creates.

A participant may add any of its MCAs or DCAs opened within TARGET-ECB or any other TARGET component system to one or more account monitoring groups and thereby become a member of that account monitoring group. A member of an account monitoring group may initiate the removal of its account from that account monitoring group at any time. A participant shall inform the leader party of an account monitoring group prior to adding an account to or removing an account from that account monitoring group.

Only the leader party for an account monitoring group shall be able to view the balances of all accounts included in that account monitoring group.

The leader party may delete the account monitoring group and shall inform the other members of the account monitoring group prior to such deletion.

Cash transfer orders submitted by participants shall be deemed accepted by the ECB if:

The ECB shall immediately reject any cash transfer order that does not fulfil the conditions laid down in paragraph 1. The ECB shall inform the participant of any rejection of a cash transfer order, as specified in Appendix I.

For the purposes of the first sentence of Articles 3(1) and 5 of Directive 98/26/EC and the third sentence of § 116, § 96(2), § 82 and § 340(3) of the Insolvenzordnung (German Insolvency Code) and the sixth sentence of § 46a(1) of the KWG:

The provisions of paragraph 1 shall not affect any rules of AS that stipulate a moment of entry into the AS and/or irrevocability of transfer orders submitted to it at a point in time earlier than the moment of entry of the respective AS transfer orders in the relevant TARGET component system.

Cash transfer orders included in an algorithm may not be revoked during the period that the algorithm is running.

In the event of an abnormal external event or any other event which affects transactions on the TARGET accounts, the business continuity and contingency procedures described in Appendix IV shall apply.

In exceptional circumstances the TARGET operating schedule may be changed, in which case participants will be informed by the ECB.

In exceptional circumstances an AS may make a request to the ECB to modify the TARGET operating schedule.

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:

Participants shall implement adequate security controls to protect their systems from unauthorised access and use. Participants shall be exclusively responsible for the adequate protection of the confidentiality, integrity and availability of their systems.

Participants shall immediately inform the ECB of any security-related incidents in their technical infrastructure and, where appropriate, security-related incidents that occur in the technical infrastructure of the third-party providers. The ECB may request further information about the incident and, if necessary, request that the participant take appropriate measures to prevent a recurrence of such an event.

The ECB may impose additional security requirements, in particular with regard to cybersecurity or the prevention of fraud, on all participants and/or on participants that are considered critical by the ECB.

Participants shall provide the ECB with: (i) permanent access to their attestation of adherence to their chosen NSP’s endpoint security requirements; and (ii) on an annual basis the TARGET self-certification statement as required for the types of accounts that they hold and as published on the ECB’s website.

The ECB shall assess the participant’s self-certification statement(s) on the participant’s level of compliance with each of the requirements set out in the TARGET selfcertification requirements. These requirements are listed in Appendix VII.

The participant’s level of compliance with the requirements of the TARGET self-certification shall be categorised as follows, in increasing order of severity: ‘full compliance’; ‘minor non-compliance’; or, ‘major non-compliance’. The following criteria apply: full compliance is reached where participants satisfy 100 % of the requirements; minor non-compliance is where a participant satisfies less than 100 % but at least 66 % of the requirements and major non-compliance where a participant satisfies less than 66 % of the requirements. If a participant demonstrates that a specific requirement is not applicable to it, it shall be considered as compliant with the respective requirement for the purposes of the categorisation. A participant which fails to reach ‘full compliance’ shall submit an action plan demonstrating how it intends to reach full compliance. The ECB shall inform the relevant supervisory authorities of the status of such participant’s compliance.

If the participant refuses to grant permanent access to its attestation of adherence to its chosen NSPs endpoint security requirements or does not provide the TARGET self-certification, the participant’s level of compliance shall be categorised as ‘major non-compliance’.

The ECB shall re-assess compliance of participants on an annual basis.

The ECB may impose the following measures of redress on participants whose level of compliance was assessed as minor or major non-compliance, in increasing order of severity:

Participants allowing access to their TARGET account by third parties as set out in Article 7 and participants having registered addressable BIC holders as set out in Part III, Article 2, shall address the risk stemming from allowing such access in accordance with the security requirements set out in paragraphs 1 to 9.

In performing their obligations pursuant to these Conditions, the ECB and the participants shall be bound by a general duty of reasonable care in relation to each other.

The ECB shall be liable to its participants in cases of fraud (including but not limited to wilful misconduct) or gross negligence, for any loss arising out of the operation of TARGET-ECB. In cases of ordinary negligence, the ECB’s liability shall be limited to the participant’s direct loss, i.e. the amount of the transaction in question and/or the loss of interest thereon, excluding any consequential loss.

The ECB shall not be liable for any loss that results from any malfunction or failure in the technical infrastructure (including but not limited to the ECB’s computer infrastructure, programmes, data, applications or networks), if such malfunction or failure arises in spite of the ECB having adopted those measures that are reasonably necessary to protect such infrastructure against malfunction or failure, and to resolve the consequences of such malfunction or failure (the latter including but not limited to initiating and completing the business continuity and contingency procedures referred to in Appendix IV).

The ECB shall not be liable:

Notwithstanding § § 676a, 676b, 676c, 676e and 676g of the Bürgerliches Gesetzbuch (German Civil Code), paragraphs 1 to 4 shall apply to the extent that the ECB’s liability can be excluded.

The ECB and the participants shall take all reasonable and practicable steps to mitigate any damage or loss referred to in this Article.

In performing some or all of its obligations under these Conditions, the ECB may commission third parties in its own name, particularly telecommunications or other network providers or other entities, if this is necessary to meet the ECB’s obligations or is standard market practice. The ECB’s obligation shall be limited to the due selection and commissioning of any such third parties and the ECB’s liability shall be limited accordingly. For the purposes of this paragraph, the Level 3 NCBs shall not be considered as third parties.

Unless otherwise provided in these Conditions, all cash transfer orders and related messages, such as confirmations of debits or credits, or statement messages, between the ECB and participants shall be made through the relevant NSP.

Electronic or written records of the messages retained by the ECB or by the relevant NSP shall be accepted as a means of evidence of the payments processed through the ECB. The saved or printed version of the original message of the relevant NSP shall be accepted as a means of evidence, regardless of the form of the original message.

If a participant’s connection to the NSP fails, the participant shall use the alternative means of transmission of messages as agreed with the ECB. In such cases, the saved or printed version of the message produced by the ECB shall have the same evidential value as the original message, regardless of its form.

The ECB shall keep complete records of cash transfer orders submitted and payments received by participants for a period of ten years from the time at which such cash transfer orders are submitted and payments are received.

The ECB’s own books and records shall be accepted as a means of evidence of any obligations of the participants and of any facts and events that the parties rely on.

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

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:

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:

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.

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

A participant’s participation in TARGET-ECB shall be immediately terminated without prior notice or suspended if one of the following events of default occurs:

The ECB may terminate without prior notice or suspend the participant’s participation in TARGET-ECB if:

In exercising its discretion under paragraph 2, the ECB shall take into account, inter alia, the seriousness of the event of default or events mentioned in points (a) to (c) of paragraph 2.

In the event that the ECB suspends or terminates a participant’s participation in TARGET-ECB under paragraphs 1 or 2, the ECB shall without undue delay inform – by means of a broadcast message or, if that is not available, by any other appropriate means of communication – the respective participant, other CBs and participants in all of the TARGET component systems of such suspension or termination. Such message shall be deemed to have been issued by the home CB of the respective participant.

Once a message issued under paragraph 4 has been received by the participants, they shall be deemed informed of the termination/suspension of a participant’s participation in TARGET-ECB or another TARGET component system. The participants shall bear any losses arising from the submission of a cash transfer order to participants whose participation has been suspended or terminated if such cash transfer order was entered into TARGET-ECB after receipt of the message.

The ECB shall have a pledge over the participant’s existing and future credit balances on its TARGET accounts, thereby collateralising any current and future claims arising out of the legal relationship between the parties.

On the occurrence of either of the events set out in point (a) or (b), all obligations of the participant shall be automatically and immediately accelerated, without prior notice and without the need for any prior approval of any authority, so as to be immediately due.

The ECB shall promptly give the participant notice of any set-off pursuant to paragraph 4 after such set-off has taken place.

The ECB may without prior notice debit any participant’s TARGET accounts by any amount which the participant owes the ECB resulting from the legal relationship between the participant and the ECB .

The provisions of this Article shall not create any right, pledge, charge or claim or set-off in respect of the following TARGET accounts used by AS:

The ECB shall keep confidential all sensitive or secret information, including when such information relates to payment, technical or organisational information belonging to the participant, participants from the same group or the participant's customers, unless the participant or its customer has given its written consent to disclose.

By derogation from paragraph 1, the participant agrees that information on any action taken under Article 24 shall not be considered as confidential.

By derogation from paragraph 1, the participant agrees that the ECB may disclose payment, technical or organisational information regarding the participant, participants from the same banking group or the participant's customers, obtained in the course of the operation of TARGET-ECB to:

The ECB shall not be liable for the financial and commercial consequences of disclosure made in accordance with paragraph 3.

By derogation from paragraph 1 and provided that this does not make it possible, whether directly or indirectly, to identify the participant or the participant's customers, the ECB may use, disclose or publish payment information regarding the participant or the participant's customers for statistical, historical, scientific or other purposes in the exercise of its public functions or of functions of other public entities to which the information is disclosed.

Information relating to the operation of TARGET-ECB to which participants have had access may only be used for the purposes laid down in these Conditions. Participants shall keep such information confidential, unless the ECB has explicitly given its written consent to disclose. Participants shall ensure that any third parties to whom they outsource, delegate or subcontract tasks which have or may have an impact on the performance of their obligations under these Conditions are bound by the confidentiality requirements in this Article.

The ECB shall be authorised, in order to settle cash transfer orders, to process and transfer the necessary data to the NSP.

Participants shall be deemed to be aware of, shall comply with, and shall be able to demonstrate that compliance to the relevant competent authorities with all obligations on them relating to legislation on data protection. They shall be deemed to be aware of, and shall comply with all obligations on them relating to legislation on prevention of money laundering and the financing of terrorism, proliferation-sensitive nuclear activities and the development of nuclear weapons delivery systems, in particular in terms of implementing appropriate measures concerning any payments debited or credited on their TARGET accounts. Participants shall ensure that they are informed about their chosen NSP’s data retrieval policy prior to entering into the contractual relationship with the NSP.

Participants authorise the ECB to obtain any information relating to them from any financial or supervisory authority or trade body, whether national or foreign, if such information is necessary for the participant’s participation in TARGET-ECB.

Participants, when acting as the payment service provider of a payer or payee, shall comply with all requirements resulting from administrative or restrictive measures imposed pursuant to Article 75 or 215 of the Treaty to which they are subject, including with respect to notification and/or the obtaining of consent from a competent authority in relation to the processing of transactions. In addition:

Except where otherwise provided for in these Conditions, all notices required or permitted pursuant to these Conditions shall be sent by registered post, facsimile or other electronic means if agreed bilaterally, or otherwise in writing. Notices to the ECB shall be submitted to the Director-General of the ECB's Directorate-General Payment Systems and Market Infrastructure, at the European Central Bank, Sonnemannstrasse 22, 60314 Frankfurt am Main, GERMANY or to the BIC address of the ECB, ‘ECBFDEFF’, or to the electronic means bilaterally agreed. Notices to the participant shall be sent to it at the address, facsimile number or other electronic means bilaterally agreedor its BIC address as the participant may from time to time notify to the ECB.

To prove that a notice has been sent, it shall be sufficient to prove that the notice was sent either physically or by electronic means to the relevant addressee.

All notices shall be given in English.

Participants shall be bound by all forms and documents of the ECB that the participants have filled in and/or signed, including but not limited to reference data collection forms, as referred to in Article 5(2), point (a), and information provided under Article 11(5), which were submitted in compliance with paragraphs 1 and 2 and which the ECB reasonably believes to have been received from the participants, their employees or agents.

In order to send to or receive from TARGET instructions and messages, participants shall:

The legal relationship between a participant and the NSP shall be exclusively governed by the terms and conditions of the contract concluded between them.

The services to be provided by the NSP shall not form part of the services to be performed by the ECB in respect of TARGET.

The ECB shall not be liable for any acts, errors or omissions of the NSP (including its directors, staff and subcontractors), or for any acts, errors or omissions of third parties selected by participants to gain access to the NSP’s network.

Participants shall not transfer, pledge or assign any rights, interests, obligations, responsibilities or claims arising from or relating to these Conditions to any third party without the ECB’s written consent.

These Conditions do not create any rights in favour of or obligations in relation to any entity other than the ECB and participants in TARGET-ECB.

The bilateral relationship between the ECB and participants in TARGET-ECB shall be governed by the law of the the Federal Republic of Germany.

Without prejudice to the competence of the Court of Justice of the European Union, any dispute arising from a matter relating to the relationship referred to in paragraph 1 falls under the exclusive competence of the competent courts of Frankfurt am Main, Germany.

The place of performance concerning the legal relationship between the ECB and the participants shall be Frankfurt am Main, Germany.

These Conditions become effective from 20 March 2023.

By requesting to participate in TARGET- ECB, applicant participants automatically agree to these Conditions between themselves and in relation to the ECB.

The ECB shall open and operate at least one MCA for each participant, except where the participant is an AS that only uses RTGS or TIPS AS settlement procedures, in which case the use of an MCA shall be at the discretion of the AS.

The primary MCA designated by the participant shall be used for the following purposes:

Any negative balance on a primary MCA shall not be lower than the credit line (if granted). There shall be no debit balance on an MCA that is not a primary MCA.

On the request of an MCA holder the ECBshall allow an MCA held by that MCA holder to be co-managed by one of the following:

The MCA holder shall provide the ECB with evidence of the consent of the co-manager to act in that capacity.

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).

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.

Part I, Article 7 shall apply to an MCA holder that designates an entity to act as co-manager of an MCA holder’s MCA pursuant to this Article.

The MCA holder shall immediately notify the ECB if the co-manager ceases to act or the co-management arrangement between the MCA holder and the co-manager is terminated.

On the request of an MCA holder the ECB shall create an MCA liquidity transfer group, for the purpose of enabling the processing of MCA-to-MCA liquidity transfer orders.

On the request of an MCA holder the ECB shall add one of the MCA holder’s MCAs to or delete it from an existing MCA liquidity transfer group created in TARGET-ECB or another TARGET component system. The MCA holder shall inform all other MCA holders in that MCA liquidity transfer group before making such a request.

The following transactions shall be processed via an MCA in TARGET-ECB:

An MCA holder may submit a liquidity transfer order as one of the following:

An MCA holder may specify a floor and/or a ceiling amount for its MCA.

By setting a ceiling and opting for a rule-based liquidity transfer order, if, following the settlement of a payment order, the ceiling is breached, the MCA holder instructs the ECB to execute a rule-based liquidity transfer order that credits an RTGS DCA or another MCA within the same MCA liquidity transfer group designated by that MCA holder. The credited RTGS DCA or MCA may be in TARGET-ECB or another TARGET component system.

By setting a floor and opting for a rule-based liquidity transfer order, if, following the settlement of a payment order, the floor is breached, a rule-based liquidity transfer order is initiated which debits an RTGS DCA or another MCA within the same MCA liquidity transfer group designated by that MCA holder. The debited RTGS DCA or MCA may be in TARGET-ECB or another TARGET component system. The holder of the RTGS DCA or MCA to be debited must authorise its account to be debited in this manner.

An MCA holder may authorise its MCA to be debited in the event that a floor is breached in one or more specified RTGS DCAs, TIPS DCAs or MCAs within the same liquidity transfer group in TARGET-ECB or another TARGET component system. By authorising its account to be debited, the MCA holder instructs the ECB to execute a rule-based liquidity transfer order that credits the RTGS DCA(s), TIPS DCA(s) or MCA(s) whenever the floor is breached.

An MCA holder may authorise its MCA to be debited in the event that there is insufficient liquidity on an RTGS DCA designated for the purpose of automated liquidity transfer orders under Part III, Article 1(5) and (6) to settle urgent payment orders, AS transfer orders or high priority payment orders. By authorising its account to be debited, the MCA holder instructs the ECB to execute a rulebased liquidity transfer order that credits its RTGS DCA.

Cash transfer orders, once accepted, shall settle immediately provided that there is available liquidity on the payer’s MCA.

In the event that there are insufficient funds on an MCA to effect settlement, the relevant rule as set out in points (a) to (e) shall apply depending on the type of cash transfer order.

All cash transfer orders in the queue shall be processed following the ‘first in, first out’ (FIFO) principle without prioritisation or reordering.

Cash transfer orders in the queue at the end of the business day shall be rejected.

An MCA holder may instruct the ECB to reserve a specified amount of liquidity on its MCA for the purpose of settling central bank operations or liquidity transfer orders to overnight deposit accounts using one of the following:

In the event that the amount of unreserved liquidity is not sufficient to fulfil the current or standing liquidity reservation order, the ECB shall partially execute the reservation order. The ECB is instructed to execute further reservation orders until the outstanding amount to be reserved is reached. Pending reservation orders shall be rejected at the end of the business day.

Central bank operations shall be settled using the liquidity reserved as set out in paragraph 1 and other cash transfer orders shall only be settled using liquidity available after the amount reserved has been deducted.

Notwithstanding paragraph 3, in the event of insufficient unreserved liquidity on the MCA holder’s primary MCA for the purpose of decreasing the MCA holder’s line of intraday credit the ECBshall use the liquidity reserved.

Upon termination of a participant’s participation in TARGET-ECB, the ECB shall not accept any new cash transfer orders from that participant. Cash transfer orders in the queue, warehoused cash transfer orders or new cash transfer orders in favour of that participant shall be rejected.

If a participant is suspended from TARGET-ECB on grounds other than those specified in Part I, Article 24 (1), point (a), the ECB shall store all of that participant’s incoming and outgoing cash transfer orders on its MCA and only submit them for settlement after they have been explicitly accepted by the suspended participant’s CB.

If a participant is suspended from TARGET-ECB on the grounds specified in Part I, Article 24(1), point (a), any outgoing cash transfer orders from that participant’s MCA shall only be processed on the instructions of its representatives, including those appointed by a competent authority or a court, such as the participant’s insolvency administrator, or pursuant to an enforceable decision of a competent authority or a court providing instructions as to how the cash transfer orders are to be processed. All incoming cash transfer orders shall be processed in accordance with paragraph 2.

The ECB shall on the request of an MCA holder open and operate one or more RTGS DCAs, and one or more sub-accounts if required for use for AS settlement. If the MCA holder has adhered to the SCT Inst scheme by signing the SEPA Instant Credit Transfer Adherence Agreement, the RTGS DCA(s) (and any sub-accounts) shall not be opened or operated unless the MCA holder is and remains reachable at all times, either as a TIPS DCA holder or as a reachable party via a TIPS DCA holder.

The ECB shall on the request of the holder of an account opened pursuant to paragraph 1 (RTGS DCA holder) add the RTGS DCA or its sub-account to a settlement bank account group for AS settlement. The RTGS DCA holder shall provide the ECB with any relevant documents, duly signed by that RTGS DCA holder and the AS.

There shall be no debit balance on an RTGS DCA or its sub-accounts.

Sub-accounts shall have a zero balance overnight.

An RTGS DCA holder shall designate one of its RTGS DCAs in TARGET-ECB for the purpose of processing automated liquidity transfer orders. By such designation the RTGS DCA holder instructs the ECB to execute an automated liquidity transfer that credits the MCA in the event that there are insufficient funds on its primary MCA for the settlement of payment orders that are central bank operations.

A participant holding two or more RTGS DCAs and two or more MCAs shall designate one of its RTGS DCAs in TARGET-ECB, which is not already designated to its primary MCA, for the purpose of processing automated liquidity transfer orders in the event that there are insufficient funds on one of its other MCAs for the settlement of payment orders that are central bank operations.

RTGS DCA holders that are entities as set out in Part I, Article 4 may only register as an addressable BIC holder, any BIC that belongs to the same legal entity.

An addressable BIC holder may submit cash transfer orders to and receive cash transfer orders via an RTGS DCA holder.

An addressable BIC holder may not be registered by more than one RTGS DCA holder.

Cash transfer orders submitted or cash transfers received by addressable BIC holders shall be deemed to have been submitted or received by the participant itself.

The participant shall be bound by such cash transfer orders and any other action taken by the addressable BIC holders, regardless of the content of, or any non-compliance with, the contractual or other arrangements between that participant and such entity.

On the request of an RTGS DCA holder the ECB shall create an RTGS liquidity transfer group, for the purpose of enabling the processing of RTGS DCA-to-RTGS DCA liquidity transfer orders.

On the request of an RTGS DCA holder the ECB shall add one of the RTGS DCA holder’s RTGS DCAs to or delete it from an existing RTGS liquidity transfer group created in TARGET-ECB or another TARGET component system. The RTGS DCA holder shall inform all other RTGS DCA holders in that RTGS liquidity transfer group before making such a request.

Payment orders to other RTGS DCAs and cash transfer orders to AS guarantee fund accounts shall be processed via an RTGS DCA in TARGET-ECB.

Cash transfer orders related to RTGS AS settlement procedures shall be settled via an RTGS DCA or its sub-accounts in TARGET-ECB.

The following transactions may be processed via an RTGS DCA or its sub-accounts in TARGET-ECB:

Liquidity transfer orders to T2S DCAs may be processed via an RTGS DCA in TARGET-ECB.

An RTGS DCA holder may submit a liquidity transfer order as one of the following:

A standing liquidity transfer order may be input or modified by the RTGS DCA holder at any time during a business day and shall become effective as of the next business day.

An immediate liquidity transfer order may be input by the RTGS DCA holder at any time during a business day. An immediate liquidity transfer order for processing in accordance with RTGS AS settlement procedures C or D may also be input by the relevant AS on behalf of the settlement bank.

An RTGS DCA holder may specify a floor and/or a ceiling amount for its RTGS DCA.

An RTGS DCA holder may authorise its RTGS DCA to be debited in the event that a floor is breached in one or more specified MCAs in TARGET-ECB or another TARGET component system. By authorising its RTGS DCA to be debited, the RTGS DCA holder instructs the ECB to execute a rule-based liquidity transfer order that credits the MCA(s) whenever the floor is breached.

An RTGS DCA holder may authorise its MCA designated for the purpose of automated liquidity transfer orders under Article 1(5) and (6) to be debited in the event that there is insufficient liquidity on the RTGS DCA to settle urgent payment orders, AS transfer orders or high priority payment orders on its RTGS DCA.

The order of priority for the processing of cash transfer orders, in descending level of urgency, shall be:

The following orders shall automatically be assigned the priority ‘urgent’:

All cash transfer orders not listed in paragraph 2 shall automatically be assigned the priority ‘normal’, except payment orders to which the RTGS DCA holder has at its discretion assigned the priority ‘high’.

Cash transfer orders on RTGS DCAs shall be settled immediately they are accepted, or later as indicated by the RTGS DCA holder in accordance with Article 16 or Article 17, provided in all cases that:

If any of the conditions set out in points (a) to (c) of paragraph 1 are not met in relation to a cash transfer order, the following shall apply.