Decision (EU) 2019/1848 of the European Central BankShow full title

ANNEX

Annexes I, II and III to Decision ECB/2007/7 are amended as follows:

1.

Annex I is amended as follows:

(a)

in Article 1, the definition of Contingency Module is deleted;

(b)

in Article 1, the definition of ‘Information and Control Module (ICM)’ is replaced by the following:

• ‘“Information and Control Module (ICM)” means the SSP module that allows PM account holders to obtain online information and gives them the possibility to submit liquidity transfer orders, manage liquidity and, if applicable, initiate backup payment orders or payment orders to the Contingency Solution in a contingency,’;

(c)

in Article 1, the following definition is added:

• ‘“Contingency Solution” means the SSP functionality that processes very critical and critical payments in contingency,’;

(d)

Article 9(8) is replaced by the following:

‘8.

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(1) or any other equivalent applicable legislation.’;

(e)

Article 21 is replaced by the following:

‘Article 21 Business continuity and contingency procedures

1. In the event of an abnormal external event or any other event which affects the operation of the SSP, the business continuity and contingency procedures described in Appendix IV shall apply.

2. The Eurosystem provides a Contingency Solution if the events described in paragraph 1 occur. Connection to and use of the Contingency Solution shall be mandatory for participants considered by the ECB to be critical. Other participants may, on request, connect to the Contingency Solution.’;

(f)

Article 22 is amended as follows:

(i)

paragraph 3 is replaced by the following:

‘3.

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.’;

(ii)

the following paragraph 4 is added:

‘4.

Participants shall provide the ECB with their TARGET2 self-certification and their attestation of adherence to the TARGET2 network service provider’s endpoint security requirements. In the event of non-adherence to the latter, participants shall provide a document describing alternative mitigating measures to the satisfaction of the ECB.’;

(g)

in Article 23(1), point (c) is replaced by the following:

‘(c)

allows participants to initiate backup liquidity redistribution and backup contingency payments or payment orders to the Contingency Solution in the event of a failure of the participant’s payment infrastructure.’;

(h)

in Article 32(2), point (c) is replaced by the following:

‘(c)

supervisory, resolution and oversight authorities of Member States and the Union, including CBs, to the extent that this is necessary for the performance of their public tasks, and provided in all such cases that the disclosure is not in conflict with the applicable law.’;

(i)

Appendix I is amended as follows:

(i)

the fifth line of the table in paragraph 2(1) is replaced by the following:

‘MT 202COV

Mandatory

Cover payment’;

(ii)

paragraph 8(7) is replaced by the following:

• ‘If a participant has technical problems and is unable to submit any payment order, it may generate preformatted backup liquidity redistribution and backup contingency payments by using the ICM. The ECB shall open such functionality upon request of the participant’;

(j)

in Appendix III, under the heading ‘Terms of reference for country opinions for non-EEA participants in TARGET2’, paragraph 3.2 entitled ‘General insolvency issues’ is replaced by the following:

‘3.2.

General insolvency and crisis management issues

3.2.a.

Types of insolvency and crisis management proceedings

• The only types of insolvency proceedings (including composition or rehabilitation) which, for the purpose of this Opinion, shall include all proceedings in respect of the Participant’s assets or any branch it may have in [jurisdiction] to which the Participant may become subject in [jurisdiction], are the following: [list proceedings in original language and English translation] (together collectively referred to as “Insolvency Proceedings”).

• In addition to Insolvency Proceedings, the Participant, any of its assets, or any branch it may have in [jurisdiction] may become subject in [jurisdiction] to [list any applicable moratorium, receivership, or any other proceedings as a result of which payments to and/or from the Participant may be suspended, or limitations can be imposed in relation to such payments, or similar proceedings, including crisis prevention and crisis management measures equivalent to those defined in Directive 2014/59/EU, in original language and English translation] (hereinafter collectively referred to as “Proceedings”).

3.2.b.

Insolvency treaties

• [jurisdiction] or certain political subdivisions within [jurisdiction], as specified, is/are party to the following insolvency treaties: [specify, if applicable which have or may have an impact on this Opinion].’;

(k)

in Appendix IV, paragraph 6 is amended as follows:

(i)

points (a) and (b) are replaced by the following:

‘(a)

If the ECB deems it necessary to do so, it shall initiate the contingency processing of payment orders using the Contingency Solution of the SSP. In such cases, only a minimum service level shall be provided to participants. The ECB shall inform its participants of the start of contingency processing by any available means of communication.

(b)

In contingency processing, payment orders shall be submitted by the participants and authorised by the ECB. In addition, the participants may submit files containing payment instructions, which may be uploaded into the Contingency Solution by the ECB.’;

(ii)

points (d) and (e) are replaced by the following:

‘(d)

Payments required to avoid systemic risk shall be considered as “critical” and the ECB may decide to initiate contingency processing in relation to them.

(e)

Participants shall submit payment orders for contingency processing directly into the Contingency Solution and information to payees shall be provided through encrypted and authenticated email, as well as via authenticated fax Participants shall submit files which contain payment instructions to the ECB for uploading into the Contingency Solution and which authorise the ECB to do so. The ECB may, exceptionally, also manually input payments on behalf of participants. Information concerning account balances and debit and credit entries may be obtained via the ECB.’;

(l)

in Appendix IV, points (a) and (b) of paragraph 7 are replaced by the following:

‘(a)

In the event that a participant has a problem that prevents it from settling payments in TARGET2 it shall be its responsibility to resolve the problem. In particular, a participant may use in-house solutions or the ICM functionality, i.e. backup liquidity redistribution and backup contingency payments (e.g. CLS, EURO1).

(b)

If a participant decides to use the ICM functionality for making backup liquidity redistribution, the ECB shall, if the participant so requests, open this functionality via the ICM. If the participant so requests, the ECB shall transmit an ICM broadcast message to inform other participants about the participant’s use of backup liquidity redistribution. The participant shall be responsible for sending such backup liquidity redistribution exclusively to other participants with which it has bilaterally agreed on the use of such payments and for any further steps in relation to such payments.’;

(m)

in Appendix VI, the third and fourth lines of the table in point 5 are replaced by the following:

‘T2S DCA to T2S DCA liquidity transfer orders	14,1	per transfer
Intra-balance movement (i.e. blocking, unblocking, reservation of liquidity etc.)	9,4	per transaction’;

2.

Annex II is amended as follows:

(a)

Article 1 is amended as follows:

(i)

the definition of ‘Information and Control Module (ICM)’ is replaced by the following:

• ‘“Information and Control Module (ICM)” means the SSP module that allows PM account holders to obtain online information and gives them the possibility to submit liquidity transfer orders, manage liquidity and, if applicable, initiate backup payment orders or payment orders to the Contingency Solution in a contingency,’;

(ii)

the following definition is added:

• ‘“Contingency Solution” means the SSP functionality that processes very critical and critical payments in contingency,’;

(b)

Article 10(9) is replaced by the following:

‘9.

T2S DCA holders 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 or any other equivalent applicable legislation.’;

(c)

Article 18(3) is replaced by the following:

‘3.

The ECB may impose additional security requirements, in particular with regard to cybersecurity or the prevention of fraud, on all T2S DCA holders and/or on T2S DCA holders that are considered critical by the ECB.’;

(d)

in Article 27(2), point (c) is replaced by the following:

‘(c)

supervisory, resolution and oversight authorities of Member States and the Union, including CBs, to the extent that this is necessary for the performance of their public tasks, and provided in all such cases that the disclosure is not in conflict with the applicable law.’;

(e)

in Appendix III, under the heading ‘Terms of reference for country opinions for non-EEA T2S DCA holders in TARGET2’, paragraph 3.2 entitled ‘General insolvency issues’ is replaced by the following:

‘3.2.

General insolvency and crisis management issues

3.2.a.

Types of insolvency and crisis management proceedings

• The only types of insolvency proceedings (including composition or rehabilitation) which, for the purpose of this Opinion, shall include all proceedings in respect of the T2S DCA holder’s assets or any branch it may have in [jurisdiction] to which the T2S DCA holder may become subject in [jurisdiction], are the following: [list proceedings in original language and English translation] (together collectively referred to as “Insolvency Proceedings”).

• In addition to Insolvency Proceedings, the T2S DCA holder, any of its assets, or any branch it may have in [jurisdiction] may become subject in [jurisdiction] to [list any applicable moratorium, receivership, or any other proceedings as a result of which payment orders to and/or from the T2S DCA holder may be suspended, or limitations can be imposed in relation to such payment orders, or similar proceedings, including crisis prevention and crisis management measures equivalent to those defined in Directive 2014/59/EU, in original language and English translation] (hereinafter collectively referred to as “Proceedings”).

3.2.b.

Insolvency treaties

• [jurisdiction] or certain political subdivisions within [jurisdiction], as specified, is/are party to the following insolvency treaties: [specify, if applicable which have or may have an impact on this Opinion].’;

(f)

in Appendix VI, the third and fourth lines of the table are replaced by the following:

‘T2S DCA to T2S DCA liquidity transfer orders	14,1 euro cent	per transfer
Intra-balance movement (i.e. blocking, unblocking, reservation of liquidity etc.)	9,4 euro cent	per transaction’;

3.

Annex III is amended as follows:

(a)

Article 14(8) is replaced by the following:

‘8.

TIPS DCA holders 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 or any other equivalent applicable legislation.’;

(b)

Article 21 is amended as follows:

(i)

paragraph 5 is replaced by the following:

‘5.

The ECB may impose additional security requirements, in particular with regard to cybersecurity or the prevention of fraud, on all TIPS DCA holders.’;

(ii)

the following paragraph 6 is added:

‘6.

TIPS DCA holders using instructing parties in line with Article 7(2) or (3), or allowing access to their TIPS DCA as set out in Article 8(1), shall be deemed to have addressed the risk stemming from such use or access in accordance with the additional security requirements imposed upon them.’;

(c)

Article 26(4) is replaced by the following:

‘4.

In the event that the ECB suspends or terminates a TIPS DCA holder’s participation in TARGET2-ECB under paragraph 1 or 2, the ECB shall immediately inform, by means of a ICM broadcast message, other CBs and PM account holders in all of the TARGET2 component systems of such suspension or termination. Such message shall be deemed to have been issued by the home CB of the PM account holder that received the message.

Linked PM account holders shall have the responsibility to inform their Linked TIPS DCA holders of the suspension or termination of any TIPS DCA holder’s participation in TARGET2-ECB.

In the event that the suspension or termination of a TIPS DCA holder’s participation in TARGET2-ECB occurs during the technical maintenance window, the ICM broadcast message shall be sent after the start of daytime processing on the next TARGET2 business day.’;

(d)

in Article 29(3), point (c) is replaced by the following:

‘(c)

supervisory, resolution and oversight authorities of Member States and the Union, including CBs, to the extent that this is necessary for the performance of their public tasks, and provided in all such cases that the disclosure is not in conflict with the applicable law.’;

(e)

in Appendix II, under the heading ‘Terms of reference for country opinions for non-EEA TIPS DCA holders in TARGET2, paragraph 3.2 entitled ‘General insolvency issues’ is replaced by the following:

‘3.2.

General insolvency and crisis management issues

3.2.a.

Types of insolvency and crisis management proceedings

• The only types of insolvency proceedings (including composition or rehabilitation) which, for the purpose of this Opinion, shall include all proceedings in respect of the TIPS DCA holder’s assets or any branch it may have in [jurisdiction] to which the TIPS DCA holder may become subject in [jurisdiction], are the following: [list proceedings in original language and English translation] (together collectively referred to as “Insolvency Proceedings”).

• In addition to Insolvency Proceedings, the TIPS DCA holder, any of its assets, or any branch it may have in [jurisdiction] may become subject in [jurisdiction] to [list any applicable moratorium, receivership, or any other proceedings as a result of which payment orders to and/or from the TIPS DCA holder may be suspended, or limitations can be imposed in relation to such payment orders, or similar proceedings, including crisis prevention and crisis management measures equivalent to those defined in Directive 2014/59/EU, in original language and English translation] (hereinafter collectively referred to as “Proceedings”).

3.2.b.

Insolvency treaties

• [jurisdiction] or certain political subdivisions within [jurisdiction], as specified, is/are party to the following insolvency treaties: [specify, if applicable which have or may have an impact on this Opinion].’.

(1)

Directive 2014/59/EU of the European Parliament and of the Council of 15 May 2014 establishing a framework for the recovery and resolution of credit institutions and investment firms and amending Council Directive 82/891/EEC, and Directives 2001/24/EC, 2002/47/EC, 2004/25/EC, 2005/56/EC, 2007/36/EC, 2011/35/EU, 2012/30/EU and 2013/36/EU, and Regulations (EU) No 1093/2010 and (EU) No 648/2012, of the European Parliament and of the Council (OJ L 173, 12.6.2014, p. 190).’;