Decision of the Governor of the Banque de France No. 2022-05 of July 6, 2022 on the harmonized conditions for participation in the new generation transeuropean automated real-time gross settlement express transfer system (TARGET)

1 Decision of the Governor of the Banque de France No. 2022-05 of July 6, 2022 relative to the harmonized conditions for participation in the new generation transeuropean automated real-time gross settlement express transfer system (TARGET) THE GOVERNOR OF THE BANQUE DE FRANCE Having regard to:

• the Treaty on the Functioning of the European Union, and in particular Article 127(2), first and fourth indents,
• the Statute of the European System of Central Banks and of the European Central Bank, and in particular Articles 3.1, 17, 18 and 22 thereof,
• ECB Guideline (EU) 2022/912 of 24 February 2022 on the transeuropean automated real-time gross settlement express transfer system (TARGET) and repealing Guideline 2013/47/EU (ECB/2012/27) (ECB/2022/8). DECIDES In application of the aforementioned Guideline of the Governing Council of the European Central Bank, the Banque de France implements the following provisions:

2 TABLE OF CONTENTS PART ONE: GENERAL CONDITIONS PART TWO: SPECIFIC CONDITIONS FOR MAIN CASH ACCOUNTS (MCA) PART THREE: SPECIFIC CONDITIONS FOR DEDICATED CASH ACCOUNTS FOR REAL-TIME GROSS SETTLEMENT (DCA RTGS) PART FOUR: SPECIFIC CONDITIONS FOR DEDICATED CASH ACCOUNTS FOR TARGET2-TITRES (DCA T2S) PART FIVE: SPECIFIC CONDITIONS FOR DEDICATED CASH ACCOUNTS FOR TARGET INSTANT PAYMENT SETTLEMENT (TIPS) (DCA TIPS) PART SIX: SPECIFIC CONDITIONS APPLICABLE TO EXOGENOUS SYSTEMS (SE) USING THE REAL-TIME GROSS SETTLEMENT PROCEDURES FOR AN EXOGENOUS SYSTEM (RTGS PROCEDURES FOR AN SE) PART SEVEN: SPECIFIC CONDITIONS APPLICABLE TO EXOGENOUS SYSTEMS USING THE TARGET INSTANT PAYMENT SETTLEMENT (TIPS) PROCEDURE FOR AN EXOGENOUS SYSTEM (TIPS PROCEDURE FOR AN SE) EUROSYSTEM ANNEXES ANNEX I: TECHNICAL SPECIFICATIONS FOR THE PROCESSING OF CASH TRANSFER ORDERS ANNEX II: TARGET COMPENSATION SCHEME ANNEX III: MODELS FOR CAPACITY NOTICES AND NATIONAL LAW NOTICES ANNEX IV: BUSINESS CONTINUITY AND EMERGENCY PROCEDURES

3 ANNEX V: TARGET OPERATING SCHEDULES ANNEX VI: PRICING ANNEX VII: INFORMATION SECURITY MANAGEMENT AND BUSINESS CONTINUITY MANAGEMENT REQUIREMENTS ANNEX VIII: DEFINITIONS BANQUE DE FRANCE ANNEXES The models of the following conventions are published on the Banque de France website. ANNEX A: TARGET-BANQUE DE FRANCE CONVENTION FOR THE OPENING AND OPERATION OF A MAIN CASH ACCOUNT (MCA) IN THE TARGET SYSTEM AND ITS ANNEXES AND APPENDIX ANNEX B: TARGET-BANQUE DE FRANCE CONVENTION FOR THE OPENING AND OPERATION OF A DEDICATED CASH ACCOUNT FOR REAL-TIME GROSS SETTLEMENT (DCA RTGS) IN THE TARGET SYSTEM AND ITS ANNEXES ANNEX C: TARGET-BANQUE DE FRANCE CONVENTION FOR THE OPENING AND OPERATION OF A T2S DEDICATED CASH ACCOUNT (DCA T2S) IN THE TARGET SYSTEM AND ITS ANNEXES ANNEX D: TARGET-BANQUE DE FRANCE CONVENTION FOR THE OPENING AND OPERATION OF A TARGET INSTANT PAYMENT SETTLEMENT DEDICATED CASH ACCOUNT (DCA TIPS) IN THE TARGET SYSTEM AND ITS ANNEXES ANNEX E: TARGET-BANQUE DE FRANCE CONVENTION FOR THE OPENING AND OPERATION OF AN SE RTGS TECHNICAL ACCOUNT IN THE TARGET SYSTEM AND ITS ANNEXES ANNEX F: TARGET-BANQUE DE FRANCE CONVENTION FOR THE OPENING AND OPERATION OF AN SE TIPS TECHNICAL ACCOUNT IN THE TARGET SYSTEM AND ITS ANNEXES ANNEX G: TARGET-BANQUE DE FRANCE CONVENTION FOR THE BILATERAL SETTLEMENT OF TRANSFER ORDERS OF AN SE PROVIDED FOR IN PROCEDURE E FOR SETTLEMENT WITHOUT A TECHNICAL ACCOUNT FOR RTGS IN THE TARGET SYSTEM

4 Part One GENERAL CONDITIONS Article 1 Scope The conditions set out in this Part One govern the relationship between the Banque de France and its participants in the TARGET system components of the Banque de France (TARGET-BANQUE DE FRANCE). The conditions set out in the subsequent parts, namely Parts Two, Three, Four, Five, Six and Seven, apply to the extent that participants choose and obtain one or more of the accounts described in those parts. The conditions set out in Parts One to Seven of this Decision are collectively referred to as the "harmonized conditions" or the "conditions". Article 2 Annexes

1. The Eurosystem annexes listed in the table of contents form an integral part of this Decision.
2. For the purposes of this Decision, the terms have the meaning attributed to them in Annex VIII.
3. The Banque de France annexes are published on the Banque de France website.
4. In the event of a conflict or incompatibility between the content of an annex and the content of any other provision of this Decision, the latter shall prevail. Article 3 General description of TARGET
5. TARGET is legally structured as a multiplicity of payment systems comprising all the TARGET system components, each of which is designated as a "system" under national law provisions transposing Directive 98/26/EC.
6. TARGET comprises euro payment systems that carry out settlements in central bank money and provide central liquidity management services, real-time gross settlement of payments and services for the settlement of SEs, and allow for cash payments for the settlement-delivery of securities and the settlement of instant payments.
7. TARGET provides: a) MCAs for the settlement of central bank operations; b) DCA RTGSs for the real-time gross settlement of high-value payments and sub-accounts if necessary for the settlement of an SE; c) DCA T2Ss for cash payments related to the settlement-delivery of securities; d) DCA TIPSs for the settlement of instant payments; and e) the following accounts for the settlement of an SE: i) SE RTGS technical accounts; ii) SE guarantee fund accounts; and iii) SE TIPS technical accounts. Each account in TARGET-BANQUE DE FRANCE is identified by a unique account number composed of the elements described in Annex I, paragraph 2. Article 4 Access criteria
8. The following categories of entities meet the criteria to become participants in TARGET-BANQUE DE FRANCE: a) credit institutions established in the Union or the EEA, including when acting through a branch established in the Union or the EEA; b) credit institutions established outside the EEA, provided they act through a branch established in the Union or the EEA; c) NCBs of Member States and the ECB; provided that the entities referred to in points (a) and (b) are not subject to restrictive measures adopted by the Council of the European Union or Member States under Article 65(1)(b), Article 75 or Article 215 of the Treaty, the implementation of which, in the opinion of the Banque de France after having informed the ECB, is incompatible with the proper functioning of TARGET.
9. The Banque de France may, at its sole discretion, also admit the following entities as participants: a) treasury services of central or regional administrations of Member States; b) public sector bodies of Member States authorized to hold accounts for clients; c) i) investment firms established in the Union or the EEA, including when acting through a branch established in the Union or the EEA; and ii) investment firms established outside the Union or the EEA, provided they act through a branch established in the Union or the EEA; d) entities managing SEs and acting in that capacity; and e) credit institutions or any entity of the type listed in points (a) to (d), which are established in a country with which the Union has concluded a monetary agreement allowing access by each of these entities to the payment systems established in the Union, subject to the conditions provided for in the monetary agreement and provided that the legal regime applicable in that country in this regard is equivalent to the relevant Union legislation.

5 Article 5 Application procedure

1. In order to become a participant in TARGET-BANQUE DE FRANCE, an entity that meets the criteria set out in Article 4(1) or an entity that may be admitted by the Banque de France under Article 4(2) must meet the following requirements: a) install, manage, operate, monitor, and secure the IT infrastructure necessary to connect to TARGET-BANQUE DE FRANCE and to be able to submit cash transfer orders to it. To this end, entities applying for participant status may use third parties but remain solely responsible; b) have passed the tests required by the Banque de France; c) if it is an applicant for a DCA RTGS, a DCA T2S or a DCA TIPS, it must also hold or open an MCA with the Banque de France; d) provide a capacity notice in the form specified in Annex III, unless the information and declarations to be provided in this capacity notice have already been obtained by the Banque de France in another context; e) for entities referred to in Article 4(1)(b) and Article 4(2)(c)(ii), provide a national law notice in the form specified in Annex III, unless the information and declarations to be provided in this national law notice have already been obtained by the Banque de France in another context; f) if it is an applicant for a DCA TIPS, have adhered to the SCT Inst scheme by signing the SEPA Instant Credit Transfer Adherence Agreement; g) if it is an applicant for an SE TIPS technical account, have provided proof that the information letter indicating its intention to be a clearing and settlement mechanism (CSM) compliant with SCT Inst has been communicated to the European Payments Council (EPC).
2. Applications are addressed to the Banque de France and contain at least the following information or documents: a) completed reference data collection forms provided by Banque de France; b) the capacity notice, if required by the Banque de France, and the national law notice, if required by the Banque de France; c) if it is an applicant for a DCA TIPS, proof of its adherence to the SCT Inst scheme; d) if the applicant requests to use the SE TIPS settlement procedure, proof that it has communicated to the EPC the information letter demonstrating its intention to be a CSM compliant with SCT Inst;

6 e) if the applicant designates a paying agent, proof that the paying agent has accepted to act in that capacity. 3. Applicants who are already participants in TARGET and who apply for a new account as described in: i) Part Three (DCA RTGS); ii) Part Four (DCA T2S); iii) Part Five (DCA TIPS); iv) Part Six (SE RTGS technical account) or v) Part Seven (SE TIPS technical account), shall comply with the provisions of paragraphs 1 and 2 to the extent that they are applicable for the new account they are applying for. 4. The Banque de France may also request any additional information it deems necessary to be able to take a decision on an application for the opening of a TARGET account. 5. The Banque de France shall reject the participation application if: a) the applicant is not an entity meeting the criteria set out in Article 4(1) or an entity that may be admitted by the Banque de France under Article 4(2); b) one or more of the requirements for participation mentioned in paragraph 1 are not met; or c) in the assessment of the Banque de France, such participation would threaten the stability, proper functioning and overall security of TARGET-BANQUE DE FRANCE or any other TARGET system component, or would compromise the performance of the Banque de France's tasks described in Articles L.141-1 et seq. of the Monetary and Financial Code and in the Statute of the ESCB and of the ECB, or constitutes a risk under the principle of prudence. 6. The Banque de France communicates its decision on the application for participation in TARGET-BANQUE DE FRANCE to the applicant within one month from the receipt of the application by the Banque de France. When the Banque de France requests additional information under paragraph 4, the decision is communicated within one month from the receipt by the Banque de France of the information provided by the applicant. Any decision to reject shall be reasoned. Article 6 Participants

1. Participants that are not SEs hold at least one MCA with the Banque de France and may also hold one or more DCA RTGSs, DCA T2Ss or DCA TIPSs with the Banque de France.
2. SEs using the SE RTGS settlement procedures or the SE TIPS settlement procedure are subject to the conditions set out in this Part as well as Part Six or Part Seven, respectively. They may hold one or more MCAs, T2S DCAs and, exceptionally and with the approval of the Banque de France, one or more DCA RTGSs, except for the settlement of instant payments in accordance with the SCT Inst scheme. If an SE holds a DCA RTGS or a DCA T2S, it also holds at least one MCA with the Banque de France. In the event that an SE holds one or more MCAs, DCA RTGSs or T2S DCAs, the corresponding parts of these conditions also apply. Article 7 Access to a participant's account by entities other than the participant
3. To the extent technically possible, a participant may grant access to its TARGET accounts to one or more entities it designates, for the purpose of submitting cash transfer orders and carrying out other actions.
4. Cash transfer orders submitted or funds received by entities designated by a participant referred to in paragraph 1 are deemed to have been submitted or received by that participant itself.
5. The participant is bound by these cash transfer orders and by any other action taken by the entity or entities referred to in paragraph 1, regardless of the content or non-compliance with contractual agreements or other arrangements concluded between that participant and that entity. Article 8 Billing
6. The Banque de France identifies billable items in accordance with Annex VI and assigns each of them to the participant from whom that billable item originates.
7. Any fee due for a cash transfer order submitted by or received by an SE, whether it uses the SE RTGS settlement procedures or a DCA RTGS, shall be exclusively billed to that SE.
8. Billable items generated by actions taken by the designated entities referred to in Article 7, as well as by central banks acting on behalf of a participant, are attributed to the participant.
9. The Banque de France issues separate invoices to the participant for the services concerned described in: i) Part Three (DCA RTGS); ii) Part Four (DCA T2S); iii) Part Five (DCA TIPS); iv) Part Six (SE RTGS settlement procedures); and v) Part Seven (SE TIPS settlement procedure).
10. The Banque de France settles each invoice by debiting an MCA held by the participant, unless the latter has designated another TARGET participant (which may be in TARGET-BANQUE DE FRANCE or another system component) as a paying agent and has instructed the Banque de France to debit the MCA of that paying agent. This instruction does not release the participant from its obligation to pay each invoice.

7 6. When a paying agent has been designated, the participant shall provide the Banque de France with proof that the paying agent has accepted to act in that capacity. 7. For the purposes of this Article, each SE is treated separately, even if two or more of them are operated by the same legal entity, and regardless of whether the SE has or has not been designated under Directive 98/26/EC. An SE not designated under Directive 98/26/EC is identified as an SE by referring to the following criteria: a) there is a formal agreement, based on an instrument of a contractual or legislative nature, for example an agreement between participants and the system operator; b) it has multiple members; c) it has common rules and standardized agreements; and d) it is intended for the clearing, settlement of payments or settlement-delivery of securities between participants. Article 9 Billing groups

1. At the request of the participant, the Banque de France creates a billing group to allow its members to benefit from the volume-based pricing applicable to DCA RTGSs. The billing group may only include DCA RTGS holders belonging to the same banking group, originating from one or more TARGET system components.
2. At the request of the holder of a DCA RTGS, the Banque de France adds that holder to a billing group or removes it from a billing group which may be in TARGET-BANQUE DE FRANCE or in any other TARGET system component. The holder of the DCA RTGS informs all other members of the billing group of this request before submitting it.
3. DCA RTGS holders included in a billing group are billed individually in accordance with Article 8. Article 10 Obligations of the Banque de France and the participant
4. The Banque de France provides the services described in Parts Two, Three, Four, Five, Six and Seven of these conditions when a participant has chosen and obtained an account referred to in those parts. Unless otherwise provided in these conditions or contrary legal provisions, the Banque de France uses all reasonable means at its disposal to perform its obligations under these conditions, without guaranteeing a result.
5. The Banque de France is the service provider under these conditions. The acts and omissions of Level 3 NCBs are considered acts and omissions of the Banque de France, for which it assumes responsibility in accordance with Article 22. Participation under these conditions does not create any contractual relationship between participants and Level 3 NCBs when any of the latter acts in that capacity. Instructions, messages or information that a participant receives from TARGET or sends to TARGET regarding the services provided under these conditions are deemed to be received from or sent to the Banque de France.
6. The participant pays fees to the Banque de France in accordance with Article 8.
7. The participant ensures that it is technically connected to TARGET-BANQUE DE FRANCE in accordance with the TARGET operating schedules set out in Annex V. This obligation may be fulfilled through a designated entity referred to in Article 7.
8. The participant declares and certifies to the Banque de France that the performance of its obligations under these conditions is not contrary to any legal, regulatory or statutory provision applicable to it nor to any agreement by which it is bound.
9. The participant pays any stamp duty and all other applicable duties and taxes related to the issuance of documents, where applicable, as well as all other costs incurred during the opening, maintenance or closure of its TARGET account. Article 11 Cooperation and exchange of information
10. In the performance of their obligations and the exercise of their rights under these conditions, the Banque de France and the participants cooperate closely to ensure the stability, proper functioning and security of TARGET-BANQUE DE FRANCE. They communicate to each other any information or document useful for the performance of their respective obligations and the exercise of their respective rights under these conditions, without prejudice to any obligation of bank secrecy.
11. The Banque de France creates and makes available a system support service to help participants in case of difficulties related to system operations.
12. Up-to-date information on the operational status of each service is available in the TARGET Information System (TIS) on a special page of the ECB website.
13. The Banque de France may communicate relevant system messages to participants via a broadcast message or, if that means is not available, by any other appropriate means of communication.
14. Participants update existing reference data collection forms in a timely manner and submit new forms for the collection of this data to the Banque de France. Participants verify the accuracy of the information concerning them that is entered into TARGET-BANQUE DE FRANCE by the Banque de France.
15. The participant authorizes the Banque de France to communicate to Level 3 NCBs any information relating to participants that Level 3 NCBs may need, in accordance with the agreements concluded between Level 3 NCBs and Eurosystem NCBs governing the provision of services that Level 3 NCBs must provide.
16. Participants inform the Banque de France without delay of any changes to their legal capacity and of relevant legislative changes affecting issues covered by the national law notice as set out in the notice models provided in Annex III.
17. The Banque de France may at any time request an update or renewal of the national law or capacity notices referred to in Article 5(1)(d) and (e).
18. Participants immediately inform the Banque de France if a failure event concerning them occurs 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 or any other equivalent applicable legislation. Article 12 Remuneration of accounts
19. MCAs, DCAs and sub-accounts are remunerated either at a rate of zero percent or at the deposit facility rate, whichever is lower, unless they are used to constitute or hold any of the following: a) the

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