Decision No. 2018-04 of 30 November 2018 amending Decision No. 2015-01 of 22 April 2015 on the implementation of monetary policy and intraday credit of the Bank of France

Decision No. 2018-04 of 30 November 2018 amending Decision No. 2015-01 of 22 April 2015 on the implementation of monetary policy and intraday credit of the Bank of France

THE GOVERNOR OF THE BANK OF FRANCE

Having regard to:

• the Treaty on the Functioning of the European Union, and in particular Article 127, paragraph 1 and paragraph 2, first indent,
• the Statute of the European System of Central Banks and of the European Central Bank (ECB), and in particular Articles 3.1, first indent, 12.1, 14.3 and 18.2,
• ECB Guideline (EU) 2015/510 of 19 December 2014 on the implementation of the Eurosystem monetary policy framework (ECB/2014/60), as amended,
• ECB Guideline (EU) 2018/1626 of 3 August 2018 amending ECB Guideline ECB/2012/27 on the Trans-European Automated Real-time Gross settlement Express Transfer system (TARGET2) (ECB/2018/20),
• the Monetary Agreement between the European Union and the Principality of Monaco of 26 December 2001, as amended on 29 November 2011,
• the Monetary and Financial Code, and in particular Article L. 142-8 thereof,
• the Governor of the Bank of France Decision No. 2015-01 of 22 April 2015 on the implementation of monetary policy and intraday credit of the Bank of France, as amended,

DECIDES

Article 1 Amendment of Decision No. 2015-01

The Governor of the Bank of France Decision No. 2015-01 of 22 April 2015 on the implementation of monetary policy and intraday credit of the Bank of France (hereinafter "the Decision") is amended as follows:

1. In Article 2, paragraph 107, the term "DCA" is replaced by "DCA T2S".

2. In Article 2, point a) of paragraph 108 is replaced by the following text:

"a) when the entity no longer meets the access criteria and/or the technical conditions provided for in the TARGET2-Bank of France convention for the opening and operation of a Main Account (MP) (Annex B), in the convention for the opening and operation of a dedicated T2S cash account (DCA T2S) (Annex J) or in the TARGET2-BANK OF FRANCE convention for the opening and operation of dedicated TIPS cash accounts (DCA TIPS) (Annex K), or when its eligibility as a counterparty for Eurosystem monetary policy operations has been suspended or terminated;"

3. In Article 2, point g) of paragraph 108 is replaced by the following text:

"g) when the credit balance of the entity on its MP account, its DCA T2S or its DCA TIPS, or the entirety or a significant part of the entity's assets, are subject to a blocking order, attachment, or any other procedure intended to protect the public interest or the rights of the entity's creditors;"

4. In Article 2, paragraph 109 is replaced by the following text:

"109) 'T2S Dedicated Cash Account - DCA T2S': an account held by the holder of a DCA T2S, opened in T2BF, and used for cash payments related to the settlement of securities transactions in T2S,"

5. In Article 2, the following paragraph 112 is inserted:

"112) 'TIPS Dedicated Cash Account – DCA TIPS': an account held by the holder of a DCA TIPS, opened in T2BF, and used for the provision of instant payment services to its clients;"

6. In Article 2, the following paragraph 113 is inserted:

"113) 'investment firm': an investment firm within the meaning of Articles L. 532-1, L. 532-18 and L. 532-18-1 of the Monetary and Financial Code, excluding the institutions specified in Article L. 531-2 of the Monetary and Financial Code, provided that the investment firm in question is: a) authorized and supervised by a competent authority recognized as such, which has been designated as such under Directive 2014/65/EU; and b) authorized to carry out the activities referred to in Article L. 321-1 of the Monetary and Financial Code, points 2; 3; 6.1, 6.2 and 7;";

7. In Article 54 (BDF1), paragraph 3, the term "DCA" is replaced by "DCA T2S";

8. In Article 54 (BDF2), paragraph 2, point b), the terms "in a State party to the EEA Agreement" are replaced by "in the EU or in a State party to the EEA Agreement";

9. In Article 54 (BDF2), the following paragraph 2 bis is inserted:

"2 bis. Eligible entities must comply with the supervisory requirements regarding the location of infrastructures providing euro services, as periodically amended and published on the ECB website*.

• The current policy of the Eurosystem regarding the location of infrastructures is set out in the following statements, which are published on the ECB website at http://www.ecb.europa.eu: a) the statement of 3 November 1998 on euro payment and settlement systems located outside the euro area (Policy statement on euro payment and settlement systems located outside the euro area); b) the statement of 27 September 2001 on the Eurosystem's policy line with regard to consolidation in central counterparty clearing (The Eurosystem's policy line with regard to consolidation in central counterparty clearing); c) the statement of 19 July 2007 on the Eurosystem policy principles on the location and operation of infrastructures settling in euro-denominated payment transactions (The Eurosystem policy principles on the location and operation of infrastructures settling in euro-denominated payment transactions); d) the statement of 20 November 2008 on the Eurosystem policy principles on the location and operation of infrastructures settling euro-denominated payment transactions: specification of 'legally and operationally located in the euro area' (The Eurosystem policy principles on the location and operation of infrastructures settling euro-denominated payment transactions: specification of 'legally and operationally located in the euro area'); e) the Eurosystem oversight policy framework (The Eurosystem oversight policy framework) in its revised version of July 2016."

10. In Article 54 (BDF2), paragraph 4, the term "DCA" is replaced by "DCA T2S";

11. In Article 54 (BDF3), paragraph 1, point e) is replaced by the following text:

"Failure to repay the intraday credit by the end of the day by a counterparty referred to in Article 54 (BDF2), paragraph 1, shall be automatically considered as a request for recourse to the marginal lending facility. If an entity referred to in Article 54 (BDF2) paragraph 1 holds a DCA TIPS, any end-of-day balance on its DCA TIPS recorded in accordance with Appendix III of the TARGET2-Bank of France convention for the opening and operation of a DCA TIPS account (Annex K) shall be taken into account for the purpose of calculating the number of automatic recourses by the entity to the marginal lending facility.

However, this shall not result in the equivalent release of assets previously deposited as collateral for the underlying intraday credit exposure.";

12. In Article 54 (BDF3), paragraph 2, the term "DCA" is replaced by "DCA T2S";

13. In Article 54 (BDF3), the following paragraph 4 bis is inserted:

"4 bis. The use of ineligible collateral may lead to the application of sanctions in accordance with the fifth part of this Decision.";

14. In Article 54 (BDF4), paragraph 3, the term "DCA" is replaced by "DCA T2S";

15. In Article 54 (BDF5), paragraph 1, the first two indents are replaced by the following text:

"- the counterparty no longer meets the access criteria and/or the technical conditions provided for in the T2BF convention for the opening and operation of an MP account (Annex B), in the convention for the opening and operation of a DCA T2S account (Annex J) or in the T2BF convention for the opening and operation of a DCA TIPS (Annex K);

• the DCA T2S, the DCA TIPS or the MP account of the counterparty with the Bank of France is suspended or closed;"

16. In Article 54 (BDF5), the term "DCA" is replaced by "DCA T2S";

17. In Article 54 (BDF6), the term "DCA" is replaced by "DCA T2S";

18. In the table of contents of the Decision, among the Bank of France Annexes, the term "DCA" is replaced by "DCA T2S" in the title of Annex J.

19. In the table of contents of the Decision, among the Bank of France Annexes, after Annex J, Annex K is inserted, titled: "T2BF Convention for the Opening and Operation of a TIPS Dedicated Cash Account (DCA TIPS) and its annexes".

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 30 November 2018.

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.

Done in Paris, 30 November 2018

The Governor of the Bank of France

François VILLEROY DE GALHAU