ECB TARGET2 Guidelines Amendments

On Jul. 23, ECB notified adoption of changes to TARGET2 guideline.

  • ECB notified the decisions that were taken by the ECB Governing Council in Jul. 2021.
  • Also adopted amendments to its guideline ECB/2012/27 on TARGET2 on Jul. 20, 2021.
  • On same day, ECB issued report on SREP IT risk questionnaire outcome, see #111866.
  • Summary
  • ECB governing council adopted guideline amending guideline ECB/2012/27 on a trans-European automated real-time gross settlement express transfer system (TARGET2).
  • The amending guideline introduces the Eurosystem single market infrastructure gateway as an access point to TARGET instant payment settlement (TIPS).
  • And new end-point security requirements to be observed by TARGET2-participants.
  • Furthermore, it implements TIPS reachability measures ensuring a pan-European reach for instant payments as approved by the governing council in Jul. 2020.
  • Effectiveness
  • Amendments will enter into force in Nov. 2021.
  • Oct. 2021 Official Journal
  • On Oct. 6, 2021, ECB issued guideline ECB/2021/30 amending ECB/2012/27 in the OJ.
  • Guideline shall take effect on the day of its notification to national central banks of the Member States whose currency is the euro; those national central banks shall take the necessary measures to comply with this guideline from Nov. 21, 2021.
  • Except for paragraphs 1(c), 7 and 9 of Annex II, which apply from Jun. 13, 2022.
  • They shall notify the ECB of those measures by Sep. 9, 2021, at the latest.
  • Also issued dec ECB/2021/43 amending dec ECB/2007/7 on terms and conditions.
  • Shall enter into force on 5th day following OJ publication; shall apply from Nov. 21, 2021, except for paras 1(c), 7 and 9 of Annex II, which apply from Jun. 13, 2022.
  • May 2020 TARGET2 Guideline Amended
  • On May 20, 2022, ECB issued round-up of monthly news including changes to TARGET guideline 2013/47/EU; done via adopted Guideline ECB/2022/20, Guideline 2022/688.
  • Defers by 3 weeks application of amendments introduced by Guideline ECB/2021/30.
  • As regards contracts concluded with TARGET2-Securities (T2S) network service providers due to the implementation of the T2-T2S Consolidation Project.
  • In Apr. 2022 ECB issued decision on TARGET terms and conditions, see #135560.
  • Jun. 2022 New TARGET Guidelines
  • On Jun. 17, 2022, ECB issued new Gd 2022/912, replacing guideline 2013/47.
  • Follows ECB Apr. 2022 published ECB/2022/8 on new TARGET system, see #133176.
  • Was adopted Feb. 24, 2022, is a consequence of the consolidation project to unite and optimize TARGET2 and TARGET2-Securities systems into a single TARGET system.
  • Guideline sets out governance structure, duties of those participating in use of system.
  • Guideline 2013/47/EU (ECB/2012/27) is repealed with effect from Nov. 21, 2022.
  • Nov. 10, 2022 TARGET-ECB Date Decision
  • On Nov. 10, 2022, ECB issued decision of Nov. 9, 2022 (ECB/2022/38) amending EU Decision 2022/911, concerning the terms and conditions in relation to TARGET-ECB.
  • Following adoption of EU Guideline 2022/912 (ECB/2022/8), Apr. 19, 2022, Executive Board adopted EU Decision 2022/911 (ECB/2022/22) implementing various changes.
  • These affected terms and conditions of ECB’s TARGET2 component system (TARGET2-ECB), as well as establishment of the rules for the repeal of ECB Decision ECB/2007/7.
  • The Governing Council decided on Oct. 20, 2022, to reschedule start of operations of TARGET to commence Mar. 20, 2023, to allow users more time to complete the testing.
  • This will allow stable environment, taking into account the systemic nature of TARGET.
  • On Nov. 9, 2022, the Governing Council adopted EU Guideline 2022/[XX] and of ECB (ECB/2022/39), amending EU Guideline 2022/912 (ECB/2022/8), to reflect new date.
  • It is necessary to implement adjustments to EU Decision 2022/911 (ECB/2022/22), to apply from Mar. 20, 2023, and Decision ECB/2007/7 will continue to apply until then.
  • The decision will enter into force from Nov. 18, 2022, and applies from Nov. 21, 2022.
  • Nov. 16, 2022 Official Journal
  • On Nov. 16, 2022, ECB issued Dec 2022/2249 (ECB/2022/38) and Gd 2022/2250 (ECB/2022/39) amending Gd 2022/912 on TARGET-ECB in the Official Journal.
  • Governing Council decided on Oct. 20, 2022, to reschedule the start of operations of TARGET to commence from Mar. 20, 2023, due to the need to allow users more time to complete their testing of the new technical platform in a stable environment.
  • Therefore, Dec 2022/911 and Gd 2022/912 should be amended, accordingly.
  • Guideline takes effect on day of its notification to central banks of the Member States whose currency is euro; Eurosystem central banks shall comply from Nov. 21, 2022.
  • Decision shall enter into force on Nov. 18, 2022; shall apply from Nov. 21, 2022.
  • In Feb. 2023, ECB confirmed go-live of T2-T2S consolidation project, see #164013.
  • Mar. 2023 TARGET Data Access
  • On Mar. 10, 2023, ECB issued Dec 2023/549 of Mar. 6, 2023, on the access to and use of certain TARGET data and repealing decision ECB/2010/9 (ECB/2023/3).
  • Access by central banks (CBs) to transaction-level data of participants is to be limited to what is necessary to allow CBs to conduct quantitative analyses of transaction flows between participants or to make numerical simulations of the settlement process of TARGET, and such access should exclude all information on the participants’ customers.
  • With the exception of where such customers are addressable BIC holders.
  • When use of aggregate TARGET payment data is not sufficient for the CBs to ensure the functioning of TARGET, CBs should have access to transaction-level data extracted from TARGET of the participants in all components, including addressable BIC holders.
  • To preserve the confidentiality of data, access to and use of transaction-level data should be limited to a small group of designated staff members from the CBs.
  • In addition to the rules on professional conduct and confidentiality applicable to CB staff members, the Market Infrastructure Board (MIB) should establish specific rules for access to and use of transaction-level data; CBs should ensure compliance with these rules by designated staff members and the MIB should monitor such compliance.
  • MIB should have the option to publish information derived from the use of transaction-level data, provided that this information does not make it possible to identify participants or participants’ customers, whether directly or indirectly.
  • Decision shall enter into force on the fifth day following that of its publication in the Official Journal of the European Union; the decision shall apply from Mar. 20, 2023.
  • Aug. 2023 Corrigendum
  • On Aug. 3, 2023, EU CMSN issued corrigendum to ECB guidelines 2022/912 of Feb. 24, 2022 on new-generation TARGET system, to correct repealed guidelines to read ECB/2012/27 (ECB/2022/8), instead of 2013/47/EU (ECB/2012/27) (ECB/2022/8).
  • Nov. 2023 Terms and Conditions
  • On Nov. 16, 2023, ECB issued Dec 2023/2532 of Nov. 9 amending Dec 2022/911.
  • On Sep. 7, 2023, the Governing Council adopted Guideline 2023/2415 of the European Central Bank (ECB/2023/22), which amends Guideline 2022/912 (ECB/2022/8).
  • Follows ECB Oct. 2023 issued Gd 2023/2415 (ECB/2023/22) in the OJ, see #186655.
  • Amendments clarified aspects of the use of trademarks relating to TARGET services.
  • Further specified requirement for Eurosystem central banks 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.
  • Introduced measures to mitigate for failure of Eurosystem CB’s connection to TARGET.
  • Established mandatory use of Contingency Solution from Mar. 21, 2025, for real-time gross settlement dedicated cash account holders and ancillary systems using TARGET.
  • Introduced clarifications relating to the reachable parties designated by the ancillary systems that use TARGET Instant Payment Settlement (TIPS).
  • Introduced revised TIPS pricing policy; and introduced certain editorial revisions.
  • Amendments made to Guideline 2022/912 which affect the terms and conditions of TARGET-ECB should be reflected in Dec 2022/911 of the European Central Bank.
  • To ensure alignment with the provisions of Guideline 2023/2415, this decision should enter into force on Nov. 20, 2023; therefore, Dec 2022/911 should be amended.
  • Jul. 2024 TARGET Guideline Amendment
  • On Jul. 30, 2024, ECB issued guideline ECB/2024/20 updating Gd 2022/912 on TARGET (ECB/2022/8) to include Dec 2024/1209 of May 2024 on remuneration of non-monetary deposits held with national central banks and the ECB, see #147753.
  • Consequently, certain provisions on remuneration set out in Gd 2022/912 should be replaced by references to the relevant provisions of Dec 2024/1209 (ECB/2024/11).
  • Other aspects of the TARGET Guideline also require clarification and revision.
  • Annex I, Part I, Article 12 of Gd 2022/912 on Remuneration of Accounts is completely replaced; in Appendix VI, section 6 Fees for TIPS DCA Holders, and section 7 Fees for AS Using TIPS as Settlement Procedures, are both completely replaced.
  • As the provisions of Dec 2024/1209 apply from Dec. 1, 2024, the provisions of the amending Guideline will also apply from that date in order to ensure legal certainty.
  • Oct. 2024 Official Journal
  • On Oct. 4, 2024, ECB issued guideline ECB/2024/20 of Jul. 30, 2024, in the EU OJ.
  • Guideline shall take effect on the day of its notification to the NCBs; NCBs shall take necessary measures to comply with this Guideline and apply them from Dec. 1, 2024.
  • Shall notify ECB of the texts and means relating to the measures by Oct. 31, 2024.
  • Nov. 5, 2024 Consequential Amendments
  • On Nov. 5, 2024, ECB issued Dec 2024/2830 of 29 Oct. 29, 2024 amending Dec 2022/911 concerning the terms and conditions of TARGET-ECB (ECB/2024/30).
  • Following ECB/2024/20 of Jul. 30, 2024, certain provisions on remuneration set out in Dec 2022/911 (ECB/2022/22) should be replaced by references to relevant provisions of Dec 2024/1209 (ECB/2024/11); these amendments will apply from Dec. 1, 2024.
  • Nov. 15, 2024 Corrigendum to ECB/2024/20
  • On Nov. 15, 2024, ECB issued corrigendum to Gd 2024/2616 (ECB/2024/20) in the OJ.
  • Concerns page 3, Annex, in point (1)(a), and page 9, Annex, in point (2)(b).
  • Concerns clerical correction of date duplication.

Regulators ECB
Entity Types B/D; Bank; BHC; Depo; Exch; MSB; SIFI
Reference OJ L, 2024/90716, 11/15/2024; OJ L, 10/5/2024; Dec 2024/2830, ECB/2024/30, 10/29/2024; OJ L, 10/4/2024; Gd 2024/2616, ECB/2024/20, 7/30/2024; OJ L, 11/16/2023; Dec 2023/2532, ECB/2023/27, 11/9/2023; Corr, OJ L 195/54, 8/3/2023; OJ L 73/19, 3/10/2023; Dec 2023/549, 3/6/2023; OJ L 295/48, L 295/50, 11/16/2022; Dec 2022/2249, ECB/2022/38, Gd 2022/2250, ECB/2022/39, 11/9/2022; PR 11/10/2022; ECB/2022/38, 11/9/2022; Rpl ECB/2007/2, 3/20/2023; OJ L 163/84, 6/17/2022; Bul 5/20/2022; Gd 2022/688, Dec 2022/911, ECB/2022/22, ECB/2022/20, 4/22/2022; Gd 2022/912, ECB/2022/8, 2/24/2022; OJ L 354/45, L 354/29, 10/6/2021; Dec 2021/1758, 9/21/2021; PR 7/23/2021; Mt, Gd 2021/1759, ECB/2021/30, 7/20/2021; Gd ECB/2013/47; Gd ECB/2012/27, 12/5/2012; Citation: Dec 2022/911; Gd 2022/912; Dec 2022/2249; Gd 2022/2250; Dec 2023/549; Dec 2023/2532; Dec 2024/2830; Dec 2022/911;
Functions Compliance; Financial; Legal; Operations; Reporting; Risk; Settlement; Technology; Treasury
Countries European Union; Cross-Border
Category
State
Products Banking; Clearing; Deposits; Payments; Securities
Regions EMEA
Rule Type Final
Rule Date 7/23/2021
Effective Date 12/1/2024
Rule Id 111872
Linked to Rule :111866
Reg. Last Update 11/15/2024
Report Section EU

Last substantive update on 11/19/2024