Decision No. 2024-06 of 18 November 2024 amending Decision No. 2022-05 of 6 July 2022 on harmonised conditions for participation in TARGET

PUBLICATION DATE: 25 November 2024
Decision No. 2024-06 of 18 November 2024 amending Decision No. 2022-05 of 6 July 2022 of the Governor of the Bank of France on the harmonised conditions for participation in the Trans-European Automated Real-time Gross Settlement Express Transfer System (TARGET)

THE GOVERNOR OF THE BANK OF 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 Trans-European Automated Real-time Gross Settlement Express Transfer System (TARGET) and repealing Guideline 2013/47/EU (ECB/2012/27) (ECB/2022/8),
• ECB Guideline (EU) 2023/2415 of 7 September 2023 amending Guideline (EU) 2022/912 on the Trans-European Automated Real-time Gross Settlement Express Transfer System (TARGET) (ECB/2022/8) (ECB/2023/22),
• ECB Guideline (EU) 2024/2616 of 30 July 2024 amending Guideline (EU) 2022/912 on the Trans-European Automated Real-time Gross Settlement Express Transfer System (TARGET) (ECB/2022/8) (ECB/2024/20),
• the Monetary Agreement between the European Union and the Principality of Monaco of 29 November 2011,
• the Monetary and Financial Code, and in particular Article L. 142-8 thereof,
• Decision No. 2022-05 of 6 July 2022 of the Governor of the Bank of France on the harmonised conditions for participation in the Trans-European Automated Real-time Gross Settlement Express Transfer System (TARGET).

DECIDES

Article 1
Modifications

Decision No. 2022-05 of 6 July 2022 of the Governor of the Bank of France on the harmonised conditions for participation in the Trans-European Automated Real-time Gross Settlement Express Transfer System (TARGET) is amended as follows:

1. In Part One:
   a) Article 12 is replaced by the following text:

« Article 12
Remuneration of accounts

1. MCA, DCA and sub-accounts shall be remunerated at the rate set out in Article 2(3)(b) of ECB Decision (EU) 2024/1209 (ECB/2024/11)1, unless they are used to hold one of the following:
   a) required reserves; b) excess reserves.
   In the case of required reserves, the calculation and payment of remuneration on such reserves shall be governed by Council Regulation (EC) No 2531/98 and Regulation (EU) 2021/378 (ECB/2021/1)2.
   In the case of excess reserves, the calculation and payment of remuneration shall be governed by ECB Decision (EU) 2019/1743 (ECB/2019/31)3.

2. Day-to-day balances held on a TIPS technical account of a SE or on a RTGS technical account of a SE for the SE’s settlement procedure D, as well as guarantee funds held by EEA financial market infrastructures, including those held on a SE’s guarantee fund account, shall be remunerated at the rate set out in Article 2(3)(c) of Decision (EU) 2024/1209 (ECB/2024/11).

1 ECB Decision (EU) 2024/1209 of 16 April 2024 on the remuneration of deposits not subject to monetary policy held with national central banks and the European Central Bank (ECB/2024/11) (OJ L, 2024/1209, 3.5.2024, ELI: http://data.europa.eu/eli/dec/2024/1209/oj). 2 Council Regulation (EC) No 2531/98 of 23 November 1998 concerning the application of required reserves by the European Central Bank (OJ L 318 of 27.11.1998, p. 1)." 3 ECB Decision (EU) 2019/1743 of 15 October 2019 concerning the remuneration of excess reserve balances and certain deposits (ECB/2019/31) (OJ L 267 of 21.10.2019, p. 12)."

3. Deposits of public administrations within the meaning of Article 2(5) of ECB Guideline (EU) 2019/671 (ECB/2019/7)4 shall be remunerated in accordance with the rules set out in Article 2(3)(a) of Decision (EU) 2024/1209 (ECB/2024/11). »

b) Annex II is amended as follows:
i) in paragraph 2 (Conditions governing compensation claims), point (a) is replaced by the following text:

«(a) A payer may submit a claim for a lump sum for administrative costs and compensatory interest if, due to a TARGET technical malfunction:
i) a cash transfer order (including to the deposit facility, or to one or more MCA or DCA belonging to that participant and marked for the purpose of meeting required reserve requirements) was not settled on the business day of its acceptance or could not be submitted; and ii) the participant attempted, where applicable, to use the emergency measures described in Annex IV, including by requesting support from the Bank of France.»;

ii) in paragraph 3 (Calculation of compensation), point (a), point (ii) is replaced by the following text:

«(ii) compensatory interest shall be determined by applying a daily reference rate. This reference rate shall be the lower of the following two rates: the Euro Short-Term Rate (€STR) minus 20 basis points, and the marginal lending facility rate, unless the claim concerns a cash transfer order to the deposit facility, in which case the reference rate shall be the rate of that facility. The reference rate shall be applied:

1. to the amount of the cash transfer order, excluding the cash transfer orders referred to in point 2), which was not settled as a result of the TARGET technical malfunction, for each day of malfunction during the period starting on the date of actual submission of the cash transfer order or the date of the attempted submission of the cash transfer order and ending on the date on which the cash transfer order was or could have been successfully settled;
2. in respect of cash transfer orders to one or more MCA or DCA marked for the purpose of meeting required reserve requirements, referred to in paragraph 2(a), to the difference between the amount of the cash transfer order not settled on the day of the TARGET technical malfunction and the amount by which the participant failed, for that reason, to meet its required reserve requirements, from the date of the malfunction until the end of the reserve maintenance period.
   Any interest or charge arising from the deposit placement of unsettled cash transfer orders with the Eurosystem shall be deducted from or set off against the compensation amount, as applicable.»;

iii) in paragraph 3 (Calculation of compensation), point (b), point (ii) is replaced by the following text:

«(ii) the method for calculating compensatory interest set out in point (a)(ii)1 shall apply, except that compensatory interest shall be due at a rate equal to the difference between the marginal lending facility rate and the reference rate, and shall be calculated on the amount for which recourse was made to the marginal lending facility as a result of the TARGET technical malfunction.»;

iv) in paragraph 4 (Procedural rules), points (b), (c) and (d) are replaced by the following text:

«(b) Participants shall submit their claim forms to the Bank of France within 4 weeks following the TARGET technical malfunction. Additional information and evidence required by the Bank of France shall be provided within 2 weeks following such a request.
(c) The Bank of France shall examine the claims and transmit them to the ECB. Unless the ECB Governing Council decides otherwise and communicates this to participants, all claims received shall be assessed within 14 weeks following the TARGET technical malfunction, unless the claim concerns cash transfer orders to one or more MCA or DCA belonging to that participant and marked for the purpose of meeting required reserve requirements, referred to in paragraph 2(a), in which case the claims received shall be assessed within 14 weeks following the end of the reserve maintenance period during which the TARGET technical malfunction occurred. (d) The Bank of France shall communicate the result of the assessment referred to in point (c) to the participants concerned. If the assessment leads to a compensation proposal, the participants concerned shall accept or reject the proposal for each cash transfer order included in each claim within 4 weeks following the communication of that proposal, by signing a standard acceptance letter (using the form available on the Bank of France website). If the Bank of France has not received this letter within this 4-week period, the participants concerned shall be deemed to have rejected the compensation proposal.»;

c) in Annex V, paragraph 6 is replaced by the following text:

« 6) The different phases of the TARGET business day and the main operational events concerning MCAs, RTGS DCAs (*), T2S DCAs and TIPS DCAs () are presented in the following table:

HH:MM	MCA	DCA RTGS (1)	DCA T2S	DCA TIPS (2)
Approx. 18:45 (J-1)	Start of business day: Date value change.	Start of business day: Date value change.	Start of business day: Date value change.	Preparation of night settlement. Processing of instant payment orders. Processing of liquidity transfer orders to/from a SE's TIPS technical accounts. No liquidity transfers between TIPS DCAs and other accounts.
19:00 (J-1)	Settlement of central bank operations (CBO). Repayment of marginal lending. Refinancing of day-to-day deposits. Processing of automated and rule-based liquidity transfer orders. Acceptance deadline for data provided by the Collateral Management System (CMS). Preparation of night settlement.
19:30 (J-1)	Settlement of central bank operations. Processing of permanent liquidity transfer orders. Processing of automated, rule-based and immediate liquidity transfer orders. Settlement of SE transfer orders. Processing of permanent liquidity transfer orders. Processing of automated, rule-based and immediate liquidity transfer orders. Processing of instant payment orders. Processing of liquidity transfer orders to/from a SE's TIPS technical accounts and liquidity transfer orders between TIPS DCAs and MCA/RTGS DCAs.
20:00 (J-1)	Night settlement cycles. Processing of instant payment orders. Processing of liquidity transfer orders to/from a SE's TIPS technical accounts and liquidity transfer orders between TIPS DCAs and other TARGET accounts.
2:30 (J)	Settlement of SE transfer orders. Processing of automated, rule-based and immediate liquidity transfer orders. Processing of customer and interbank payment orders.
2:30 (civil day after J-1)	Non-optional maintenance period until 2:30 on business days following closure days, including each Monday corresponding to a business day. Optional maintenance period (if necessary) from 3:00 to 5:00 on TARGET business days.
Reopening time* (J)	Settlement of central bank operations. Processing of automated, rule-based and immediate liquidity transfer orders. Settlement of SE transfer orders. Processing of automated, rule-based and immediate liquidity transfer orders. Processing of customer and interbank payment orders. Night settlement cycles. Processing of instant payment orders. Processing of liquidity transfer orders to/from a SE's TIPS technical accounts and liquidity transfer orders between TIPS DCAs and other TARGET accounts.
5:00 (J)	Day operations/real-time settlement: Preparation for real-time settlement; Partial settlement windows (4).
16:00 (J)	Deadline for DvP orders.
16:30 (J)	Automatic repayment of auto-collateralisation, followed by optional cash sweep.
17:00 (J)	Deadline for customer payment orders.
17:40 (J)	Deadline for treasury management (BATM) and central bank operations.
17:45 (J)	Deadline for liquidity transfer orders to T2S DCAs. Deadline for incoming liquidity transfer orders. Processing of instant payment orders. Processing of liquidity transfer orders to/from a SE's TIPS technical accounts and liquidity transfer orders between TIPS DCAs and MCA/RTGS DCAs. Blocking of liquidity transfer orders from TIPS DCAs to T2S DCAs. No liquidity transfer orders between T2S DCAs and TIPS DCAs are processed during this period.
18:00 (J)	Deadline for: —liquidity transfer orders, —central bank operations, except permanent facilities, —credit line changes.	Deadline for: —interbank payment orders, —liquidity transfer orders, —SE transfer orders. Recycling and purge. End-of-day reports and account statements.	Deadline for FOP instructions. End of T2S settlement process. Processing of instant payment orders. Processing of liquidity transfer orders to/from a SE's TIPS technical accounts. No liquidity transfer orders between TIPS DCAs and other accounts.
Shortly after 18:00	Change of business day (after receipt of camt.019 message from MCA/RTGS). Snapshot of TIPS DCA balances and end-of-day reports.
18:15 (J)	Deadline for recourse to permanent facilities. Processing of instant payment orders and liquidity transfer orders to/from a SE's TIPS technical accounts. No liquidity transfer orders between TIPS DCAs and other accounts.
18:40 (J)	Deadline for recourse to marginal lending facility (NCB only). End-of-day processing.

(1) Also applies to a SE's RTGS technical accounts, sub-accounts and guarantee fund accounts.
(2) Also applies to a SE's TIPS technical accounts.
(3) For T2S DCAs: for the purpose of the maintenance period, 1 May is considered a business day.
(4) Partial settlement windows take place at 8:00, 10:00, 12:00, 14:00 and 15:30 (or 30 minutes before the start of the DvP deadline, whichever is earlier).

Operating hours may be modified in the event of the adoption of measures to ensure operational continuity in accordance with Annex IV. On the last day of the Eurosystem reserve maintenance period, the deadlines 18:15, 18:40, 18:45, 19:00 and 19:30 for MCAs and RTGS DCAs (as well as a SE's RTGS technical accounts, sub-accounts and guarantee fund accounts) are set 15 minutes later.

List of abbreviations and notes relating to this table:
*Reopening times: may vary depending on the situation. Information is provided by the operator.
(J-1): previous business day
(J): business day = value date
CMS (Collateral Management System): Collateral Management System DvP orders: Delivery versus Payment orders.

(*) Also applies to a SE's RTGS technical accounts, sub-accounts and guarantee fund accounts.
() Also applies to a SE's TIPS technical accounts. »;

d) in Annex VI, Section 6 (FEES APPLICABLE TO TIPS DCA HOLDERS) and Section 7 (FEES APPLICABLE TO SEs USING A SE'S TIPS SETTLEMENT PROCEDURE) are replaced by the following text:

«6. FEES APPLICABLE TO TIPS DCA HOLDERS
The operating fees for TIPS DCAs are charged as follows:
a) For each TIPS DCA, a fixed monthly fee of EUR 800 is charged to the holder of the TIPS DCA. This fixed fee covers one BIC, the holder of which is a reachable party in TIPS and which is intended for use by the holder of the TIPS DCA. b) For each additional reachable party, up to a maximum of 50 reachable parties, designated by the holder of the TIPS DCA, a fixed monthly fee of EUR 20 is charged to the holder of the TIPS DCA who designated it. No fee is charged for any further reachable parties designated. c) For each instant payment order or positive response to a recall request accepted by the Bank of France in accordance with Part One, Article 17, a fee of EUR 0.001 is charged both to the holder of the TIPS DCA via a debit and to the holder of the TIPS DCA or the TIPS technical account of a SE via a credit, regardless of the settlement of the instant payment order or the positive response to a recall request. d) No fee is charged for liquidity transfer orders from TIPS DCAs to MCAs, RTGS DCAs, sub-accounts, day-to-day deposit accounts, TIPS technical accounts of a SE and T2S DCAs.

7. FEES APPLICABLE TO SEs USING A SE'S TIPS SETTLEMENT PROCEDURE
   The fees for the use by a SE of the SE's TIPS settlement procedure are charged as follows:
   a) For each TIPS technical account of a SE, a fixed monthly fee of EUR 3,000 is charged to the holder of the TIPS technical account of a SE. b) For each reachable party, up to a maximum of 50 reachable parties, designated by the holder of the TIPS technical account of a SE, a fixed monthly fee of EUR 20 is charged to the holder of the TIPS technical account of a SE who designated it. No fee is charged for any further reachable parties designated. c) For each instant payment order or positive response to a recall request accepted by the Bank of France in accordance with Part One, Article 17, a fee of EUR 0.001 is charged both to the holder of the TIPS technical account of a SE via a debit and to the holder of the TIPS technical account of a SE or the TIPS DCA via a credit, regardless of the settlement of the instant payment order or the positive response to a recall request. d) No fee is charged for liquidity transfer orders from TIPS technical accounts of a SE to TIPS DCAs. e) In addition to the fees set out above, each SE is subject to a monthly fee based on the underlying gross volume of instant payments, quasi-instant payments and positive responses to recall requests that have been settled on the SE's own platform and made possible by pre-funded positions on the TIPS technical account of a SE. Each SE shall declare, for each month, the underlying gross volume of its settled instant payments, settled quasi-instant payments and settled positive responses to recall requests, rounded down to the nearest ten thousand, no later than the third business day of the following month. The declared underlying gross volume shall be used by the Bank of France to calculate the unit fee per settled instant payment, per settled quasi-instant payment or per settled positive response to a recall request for the previous month in accordance with the following table:

Declared underlying gross volume	From	To	Unit fee
0	10,000,000	0.00040 EUR
10,000,001	25,000,000	0.00030 EUR
25,000,001	100,000,000	0.00020 EUR
100,000,001		0.00015 EUR

2. Annex VIII is amended as follows:
   a) point 11) is replaced by the following text:

« 11) “branch”: a branch within the meaning of Article 4(1)(17) of Regulation (EU) No 575/2013 of the European Parliament and of the Council5 or Article 4(1)(30) of Directive 2014/65/EU of the European Parliament and of the Council6; »

b) point 42) is replaced by the following text:

« 42) “quasi-instant payment”: a cash transfer order complying with the Dutch Standard for the Instant processing of SEPA Credit Transfers (NL Standard for the Instant processing of SEPA Credit Transfers) listed among the so-called “SEPA Credit Transfer Additional Optional Services (SCT AOS)” of the European Payments Council or the One-Leg Out Instant Credit Transfer (OCT Inst) scheme set up by that same Council within the SEPA; »

Article 2
Publication and entry into force

1. This Decision shall be published in the Official Publication Register of the Bank of France.
2. It shall enter into force on 1 December 2024.
3. This Decision shall apply in the overseas departments and regions, in Saint-Barthélemy, in Saint-Martin, in Saint-Pierre-and-Miquelon, as well as in the Principality of Monaco.

5 Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms...