Decision of the European Central Bank of 24 July 2007 concerning the terms and conditions of TARGET2-ECB (ECB/2007/7) (2007/601/EC)

[F1 TITLE IV U.K. OPENING AND MANAGEMENT OF THE [F2 T2S DCA] AND PROCESSING OF OPERATIONS U.K.

Article 12 U.K. Opening and management of the [F2 T2S DCA]

1. The ECB shall open and operate at least one [F2 T2S DCA for each [F2 T2S DCA holder] . A T2S DCA] shall be identified [F2 by means of a unique account number of up to 34 characters] which will be structured as follows.

	Name	Format	Content
Part A	Account type	1 char. exactly	‘ C ’ for cash account
	Country code of the central bank	2 char. exactly	ISO country code 3166-1
	Currency code	3 char. exactly	EUR
Part B	Account holder	11 char. exactly	BIC Code
Part C	Sub-classification of the account	Up to 17 char.	Free text (alphanumeric) to be provided by the [F2 T2S DCA holder]

2. No debit balance shall be allowed on [F2 T2S DCAs] .

3. The [F2 T2S DCA] shall not hold any funds overnight. At the beginning and end of a business day, there shall be a zero balance on the [F2 T2S DCAs] . [F2 T2S DCA holders] shall be deemed to have instructed the ECB to transfer any remaining balance at the end of a business day as defined in Appendix V to the Main PM account referred to in Article 11(1).

4. The [F2 T2S DCA] shall only be used within the period between the T2S start-of-day and T2S end-of-day as defined in the T2S User Detailed Functional Specifications (UDFS).

5. [F2 T2S DCAs] shall be interest free.

Article 13 U.K. Operations that may be carried out through the [F2 T2S DCA]

Subject to the [F2 T2S DCA holder designating the necessary securities account(s), the T2S DCA holder] may carry out the following operations through the [F2 T2S DCA] either on its own behalf or on behalf of its customers:

(a)

[F2 T2S DCA to PM liquidity transfer orders] ;

(b)

[F2 T2S DCA to T2S DCA liquidity transfer orders] ;

(c)

the settlement of cash instructions stemming from the T2S Platform; and

(d)

cash transfers between the [F2 T2S DCA and the T2S DCA] of the ECB in the particular context of paragraphs 8 and 9 of Annex IIIa to Guideline ECB/2012/27.

Article 14 U.K. Acceptance and rejection of payment orders

1. Payment orders submitted by [F2 T2S DCA holders] are deemed accepted by the ECB if:

(a) the payment message complies with the rules established by the T2S network service provider;

(b) the payment message complies with the formatting rules and conditions of TARGET2-ECB and passes the double-entry check described in Appendix I; and

(c) in cases where a payer or a payee has been suspended, the suspended participant's CB's explicit consent has been obtained.

2. The ECB shall immediately reject any payment order that does not fulfil the conditions laid down in paragraph 1. The ECB shall inform the [F2 T2S DCA holder] of any rejection of a payment order, as specified in Appendix I.

[F2 3. The T2S Platform attaches its timestamp for the processing of payment orders in the sequence of their receipt.]

Article 15 U.K. Reservation and blocking of liquidity

1. Participants may reserve or block liquidity on their [F2 T2S DCA] . This does not constitute a settlement guarantee in favour of any third party.

2. By requesting to reserve or block an amount of liquidity, a participant instructs the ECB to decrease the available liquidity by this amount.

3. A reservation request is an instruction by which, if the available liquidity is equal to or higher than the amount to be reserved, the reservation is processed. If the available liquidity is lower, it is reserved and the shortfall may be met by incoming liquidity until the full amount of the reservation is available.

4. A blocking request is an instruction by which, if the available liquidity is equal to or higher than the amount to be blocked, the blocking request is processed. If the available liquidity is lower, no amount is blocked and the blocking request is resubmitted, until the full amount of the blocking request can be met by available liquidity.

5. The participant may at any time during the business day on which a request to reserve or block liquidity has been processed, instruct the ECB to cancel the reservation or blocking. Partial cancelation shall not be permitted.

6. All requests for reservation or blocking of liquidity under this article shall expire at the end of the business day.

Article 16 U.K. Moment of entry, moment of irrevocability

1. For the purposes of the first sentence of Article 3(1) and Article 5 of Directive 98/26/EC, and the third sentence of Section 116, Section 96(2), Section 82 and Section 340(3) of the German Insolvency Code (Insolvenzordnung) and the last sentence of Section 46(2) of the KWG, [F2 T2S DCA to T2S DCA liquidity transfer orders] or [F2 T2S DCA to PM liquidity transfer orders] are deemed entered into TARGET2-ECB and are irrevocable at the moment that the relevant [F2 T2S DCA holder's] [F2 T2S DCA] is debited. [F2 PM to T2S DCA liquidity transfer orders] are governed by the Harmonised Conditions for the Opening and Operation of a PM account in TARGET2 applicable to the TARGET2 component system from which they originate.

[F2 2. For the purposes of the first sentence of Article 3(1) and Article 5 of Directive 98/26/EC and the third sentence of Section 116, Section 96(2), Section 82 and Section 340(3) of the German Insolvency Code (Insolvenzordnung) and the last sentence of Section 46(2) of the KWG, and for all transactions settling on T2S DCAs, the following rules apply:

(a) for all transactions settling on T2S DCAs and which are subject to matching of two separate transfer orders, such transfer orders are deemed entered into TARGET2-ECB at the moment at which they have been declared compliant with the technical rules of T2S by the T2S Platform and irrevocable at the moment the transaction has been given the status ‘ matched ’ on the T2S Platform; or

(b) as an exception to point (a), for transactions involving one participating CSD having a separate matching component where transfer orders are sent directly to that participating CSD to be matched in its separate matching component, transfer orders are deemed entered into TARGET2-ECB at the moment at which they have been declared compliant with the technical rules of T2S by that participating CSD and irrevocable from the moment the transaction has been given the status ‘ matched ’ on the T2S Platform. A list of CSDs for which this point (b) applies is available on the website of the ECB.] ]

F3 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F3 Deleted by Decision (EU) 2018/1625 of the European Central Bank of 8 October 2018 amending Decision ECB/2007/7 concerning the terms and conditions of TARGET2-ECB (ECB/2018/24).

Textual Amendments

F1 Inserted by Decision (EU) 2015/929 of the European Central Bank of 26 May 2015 amending Decision ECB/2007/7 concerning the terms and conditions of TARGET2-ECB (ECB/2015/22).

F2 Substituted by Decision (EU) 2018/1625 of the European Central Bank of 8 October 2018 amending Decision ECB/2007/7 concerning the terms and conditions of TARGET2-ECB (ECB/2018/24).