Instruction No. 15/2024
Official Gazette No. 11/2024 2nd Supplement • 2024/11/28

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Payment Systems Topics :: Large-Value Payment System

Index

Text of the Instruction
List of abbreviations and notes relating to this table:

Text of the Instruction

Subject: Amendment to Instruction No. 16/2022, which regulates the operation of the national component system of TARGET (TARGET-PT)

Following the publication of Guideline (EU) 2024/2616 of the European Central Bank of 30 July 2024 (ECB/2024/20), which amends Guideline (EU) 2022/912 on a new-generation trans-European automated real-time gross settlement express transfer system (TARGET) (ECB/2022/8 Guideline), it becomes necessary to amend Instruction No. 16/2022 of 17 October 2022, which implements Guideline ECB/2022/8 in the domestic legal order.

These amendments aim to reflect Decision (EU) 2024/1209 of the European Central Bank of 16 April 2024 (ECB/2024/11), on the remuneration of non-monetary policy deposits held with national central banks of Member States whose currency is the euro and with the European Central Bank, namely with regard to the new remuneration rules applicable to account balances and TARGET balances of interconnected national central banks.

Accordingly, in the exercise of the competence conferred on it by Article 14 of its Organic Law, which grants it powers to regulate, supervise and promote the proper functioning of payment systems, particularly within the scope of its participation in the European System of Central Banks (ESCB), and with a view to regulating the operation of the national component system of TARGET – TARGET-PT –, Banco de Portugal determines the following:

1. In Article 9 of Instruction No. 16/2022 of 17 October, paragraph 8 is amended to read as follows:

"8. Eurosystem CBs shall not register, in their own accounts, addressable BIC holders or contactable parties that meet the TARGET participation conditions set out in Annex I, Part I, Article 4, with the exception of branches of the Eurosystem CB concerned, entities listed in Annex I, Part I, Article 4(2)(a) and (b), and participants maintaining the accounts referred to in paragraph 2(d)."

2. In Article 11 of Instruction No. 16/2022 of 17 October, paragraph 5(b) is amended to read as follows:

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"b) The nature of the right to funds held in a TARGET account, where the funds held do not form part of the PM's estate, in particular to ensure compliance with the Eurosystem policy on the use of pre-funding by ancillary systems, as published on the ECB's website."

3. In Annex I to Instruction No. 16/2022 of 17 October, in Part I, Article 12 is amended as follows:

"Article 12

Remuneration of accounts

1. PM accounts, DCA and sub-accounts shall be remunerated at the rate set out in Article 2(3)(b) of Decision (EU) 2024/1209 of the European Central Bank (ECB/2024/11) (*), unless they are used to hold:

a) Minimum reserves; or

b) Excess reserves.

In the case of minimum reserves, the calculation and payment of remuneration on minimum reserves held shall be governed by the provisions of Council Regulation (EC) No. 2531/98 (**) and Regulation (EU) 2021/378 (ECB/2021/1).

In the case of excess reserves, the calculation and payment of remuneration on reserves held shall be governed by the provisions of Decision (EU) 2019/1743 of the European Central Bank (ECB/2019/31) (***).

2. Overnight balances held in a TIPS AS technical account or in an RTGS AS technical account for PM settlement procedure D and guarantee funds held by EEA financial market infrastructures, including those held in an AS guarantee fund account, shall be remunerated at the rate set out in Article 2(3)(c) of Decision (EU) 2024/1209 (ECB/2024/11).

3. Deposits of public administrations, as defined in Article 2(5) of Guideline (EU) 2019/671 of the European Central Bank (ECB/2019/7) (****) shall be remunerated in accordance with the rules set out in Article 2(3)(a) of Decision (EU) 2024/1209 (ECB/2024/11).

[*] Decision (EU) 2024/1209 of the European Central Bank of 16 April 2024 on the remuneration of non-monetary policy deposits 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). http://data.europa.eu/eli/dec/2024/1209/oj).

[**] Council Regulation (EC) No. 2531/98 of 23 November 1998 on the application of minimum reserves by the European Central Bank (OJ L 318, 27.11.1998, p. 1).

[***] Decision (EU) 2019/1743 of the European Central Bank of 15 October 2019 on the remuneration of excess reserves and certain deposits (ECB/2019/31) (OJ L 267, 21.10.2019, p. 12).

[****] Guideline (EU) 2019/671 of the European Central Bank of 9 April 2019 on domestic asset and liability management operations by national central banks (ECB/2019/7) (OJ L 113, 29.04.2019, p. 11)."

4. In Annex I to Instruction No. 16/2022 of 17 October, Appendix II is amended as follows:

a) In paragraph 2, subparagraph a) is amended to read as follows:

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"a) A payer may claim reimbursement of the administration fee and the payment of compensatory interest if, due to a TARGET malfunction:

i) a cash transfer order (including to the standing deposit facility, or to one or more PM accounts or DCAs belonging to that participant and flagged for the purposes of compliance with minimum reserve requirements) was not settled on the business day on which it was accepted or could not be submitted; and

ii) the participant attempted to apply, where applicable, the contingency processing measures described in Appendix IV, including the request for support from Banco de Portugal.»;

b) In paragraph 3, subparagraph a), point ii) is amended to read as follows:

«ii) compensatory interest shall be determined by applying a reference rate to be fixed on a daily basis. This reference rate shall be the lower of the euro short-term interest rate (€STR) minus 20 basis points and the interest rate of the marginal lending facility, unless the credit concerns a cash transfer order to the standing deposit facility, in which case the reference rate shall be the standing deposit facility rate. The reference rate is applied:

1) to the amount of the cash transfer order, with the exception of the cash transfer orders referred to in point 2) below, not settled as a result of the TARGET malfunction, for each day of malfunction in the period between the date on which the cash transfer order was actually entered or from the date of the attempt to enter the cash transfer order until the date on which the cash transfer order was or could have been successfully settled;

2) in relation to cash transfer orders to one or more PM accounts or DCAs flagged for the purposes of compliance with minimum reserve requirements, referred to in paragraph 2, subparagraph a), to the difference between the amount of the cash transfer order not settled on the day of the TARGET malfunction and the amount that the participant does not have available to comply with the minimum reserve requirements as a result of the malfunction, from the date of the malfunction until the end of the reserve maintenance period.

Any interest or charges resulting from the deposit, in the Eurosystem, of any unsettled cash transfer orders shall be deducted from or charged to the amount of any compensation, as the case may be.»;

c) In paragraph 3, subparagraph b), point ii) is amended to read as follows:

«ii) the same calculation method as provided for in paragraph 1, subparagraph a), point ii) applies to compensatory interest, except that the interest shall be paid at a rate equal to the difference between the interest rate of the marginal lending facility and the reference rate, and calculated on the amount that was financed by this facility as a result of the TARGET malfunction.»;

d) In paragraph 4, subparagraphs b), c) and d) are amended to read as follows:

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«b) Participants shall submit their claim forms to Banco de Portugal within four weeks from the malfunction. Any additional information or evidence required by Banco de Portugal must be provided within two weeks from the date on which it is requested;

c) Banco de Portugal shall analyse the claims and forward them to the ECB. Unless otherwise decided by the ECB Governing Council and communicated to the participants, all claims received shall be assessed within a maximum of 14 weeks from the date of occurrence of the TARGET malfunction, unless the credit concerns cash transfer orders to one or more PM accounts or DCAs belonging to that participant and flagged for the purposes of compliance with the minimum reserve requirements referred to in paragraph 2, subparagraph a), in which case the claims received shall be assessed within a maximum of 14 weeks after the end of the reserve maintenance period during which the TARGET malfunction occurred.

d) Banco de Portugal shall communicate the results of the assessment referred to in subparagraph c) to the relevant participants. If the result of the assessment includes a compensation proposal, the participants concerned must, within four weeks from the communication of the proposal, accept or reject it, in relation to each individual cash transfer order corresponding to each claim, by signing a standard acceptance letter (according to the template available on Banco de Portugal's website). If Banco de Portugal does not receive the said letter within four weeks, it shall be presumed that the participants concerned have rejected the compensation proposal.»

4. In Annex I to Instruction No. 16/2022 of 17 October, Appendix V, point 6, is amended as follows:

«6. The different phases of the TARGET business day and the significant operational events relevant to PM accounts, RTGS DCAs(*), T2S DCAs and TIPS DCAs(**) are presented in the following table:

HH:MM	PM	RTGS DCA(1)	T2S DCA	TIPS DCA(2)
Approx. 18:45 (D-1)	Start of business day: Change of value date.	Start of business day: Change of value date.	Start of business day: Change of value date. Preparation of night-time settlement.	Processing of instant payment orders. Processing of liquidity transfer orders from/to TIPS technical accounts SP. There are no liquidity transfers between TIPS DCA and other accounts.
19:00 (D-1)	Settlement of central bank operations (CBO). Reimbursement of the marginal lending facility.		Cut-off time for acceptance of data from the Collateral Management System (CMS). Preparation of night-time settlement.

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HH:MM	PM	RTGS DCA(1)	T2S DCA	CND TIPS(2)
	Overnight deposit refunds. Processing of automated and rule-based liquidity transfer orders.

Instruction No. 15/2024 BO No. 11/2024 2nd Supplement • 2024/11/28 Topics Payment Systems :: Large Transaction Payment System
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19h30 (D-
1)
Settlement of central bank operations.
Processing of standing liquidity transfer orders Processing of automated, rule-based and immediate liquidity transfer orders.
Settlement of
SP liquidity transfer orders.
Processing of standing liquidity transfer orders.
Processing of automated, rule-based and immediate liquidity transfer orders.
Processing of immediate payment orders.
Processing of liquidity transfer orders from/to SP TIPS technical accounts and liquidity transfer orders between CND TIPS and CNP, CND LBTR.
20h00 (D-
1)
Nightly settlement cycles.
Processing of immediate payment orders.
Processing of liquidity transfer orders from/to SP TIPS technical accounts and liquidity transfer orders between CND TIPS and other accounts TARGET.
2h30 (D) Settlement of transfer orders of
SP.
Processing of orders of transfer of liquidity automated, rule-based and immediate.
Processing of payment orders from customers and interbank.
2h30
(calendar day after
D-1)
Maintenance window not optional until
02h30 on business days after closing, including Mondays that are business days.
Maintenance window optional (if necessary) from 3h00 to 5h00 on TARGET business days.
Maintenance period not optional until 2h30 on business days after closing, including Mondays that are business days.
Maintenance window optional (if necessary) from 3h00 to 5h00 on business days of TARGET.
Maintenance period not optional until 2h30 on business days after closing, including Mondays that are business days.
Maintenance window optional (if necessary) from 3h00 to 5h00 on business days of TARGET(3) .
Processing of payment orders immediate.
Processing of transfer orders of liquidity from/to SP TIPS technical accounts.
No liquidity transfer orders between TIPS DCA and other TARGET accounts.
Reopening time*
(D)
Settlement of central bank operations.
Settlement of transfer orders of SP.
Night-time settlement cycles.
Processing of immediate payment orders.

	Processing of automated, rule-based and immediate liquidity transfer orders.	Processing of automated, rule-based and immediate liquidity transfer orders. Processing of customer and interbank payment orders.		Processing of liquidity transfer orders from/to SP TIPS technical accounts and liquidity transfer orders between TIPS DCA and other TARGET accounts.

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5H00 (D)			Daytime processing/Real-time settlement: Preparation of real-time settlement; Partial settlement windows(4).
16H00 (D)			Cut-off time for delivery-versus-payment (DvP) orders.
16h30 (D)			Automatic reimbursement of auto-collateralisation operations, followed by optional cash sweep.
17h00 (D)		Cut-off time for customer payment orders
17h40 (D)			Cut-off time for bilaterally agreed treasury management (BATM) operations and CBO
17h45 (D)		Cut-off time for liquidity transfer orders to T2S DCA.	Cut-off time for the entry of liquidity transfer orders.	Processing of immediate payment orders. Processing of liquidity transfer orders from/to SP TIPS technical accounts and liquidity transfer orders between TIPS DCA and PM, RTGS DCA. Blocking of liquidity transfer orders from TIPS DCA to T2S DCA. During this period, liquidity transfer orders between T2S DCA and TIPS DCA are not processed.

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18h00 (D)	Cut-off time for: —liquidity transfer orders —CBO, except standing facilities —credit line changes.	Cut-off time for: —interbank payment orders —liquidity transfer orders —SP transfer orders.	Cut-off time for free of payment (FOP) settlements. End of settlement processes in T2S. Recycling and purging. End-of-day reports and statements.	Processing of immediate payment orders. Processing of liquidity transfer orders from/to SP TIPS technical accounts. Liquidity transfer orders between TIPS DCA and other accounts are not processed.
				Shortly after 18h00: Change of business day (after receiving the camt.019 message from the PM/RTGS) Snapshot of TIPS DCA balances and end-of-daily-session reports.
18h15 (D)	Cut-off time for the use of standing facilities.			Processing of immediate payment orders and liquidity transfer orders from/to SP TIPS technical accounts. Liquidity transfer orders between TIPS DCA and other accounts are not processed.
18h40 (D)	Cut-off time for the use of the marginal lending facility (only for NCBs). Processing of the end of the daily session.

[1] Also applies to SP LBTR technical accounts, sub-accounts and SP guarantee fund accounts.

[2] Also applies to SP TIPS technical accounts.

[3] In the case of CND T2S: for the purposes of the maintenance window, 1 May is considered a business day.

[4] Partial settlement windows take place at 08:00, 10:00, 12:00, 14:00 and 15:30 (or 30 minutes before the start of the cut-off time for delivery versus payment (DvP) transactions, whichever occurs first).

The operating hours may be subject to changes in the event that business continuity measures are adopted in accordance with the provisions of Appendix IV. On the last day of the Eurosystem minimum reserve maintenance period, the cut-off times 18:15, 18:40, 18:45, 19:00 and 19:30 for CNP and CND LBTR (as well as for SP LBTR technical accounts and SP guarantee fund sub-accounts and accounts) are delayed by 15 minutes.

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List of abbreviations and notes relating to this table:

• Reopening hours: may vary depending on the situation. The information is provided by the Operator.

(D-1):
previous business day
(D):
business day = value date
CMS:
Collateral Management System (Sistema de gestão de garantias) DvP [Orders]:
Delivery versus Payment Orders (Ordens de entrega contra pagamento).

(*) Also applies to SP LBTR technical accounts, sub-accounts and SP guarantee fund accounts.

(**) Also applies to SP TIPS technical accounts."

5. In Annex I of Instruction No. 16/2022, of 17 October, in Appendix VI, sections 6 and 7 shall read as follows:

«6. FEES APPLICABLE TO CND TIPS HOLDERS

The operating fees for CND TIPS are charged as follows:

a) A fixed monthly fee of 800 EUR is charged for each CND TIPS to the holder of the CND TIPS. This fixed fee includes a Business Identifier Code (BIC), which corresponds to a reachable party in TIPS and has been designated for use by the CND TIPS holder;

b) A fixed monthly fee of 20 EUR is charged to the CND TIPS holder who made the designation for each reachable party, up to a maximum of 50, designated by the CND TIPS holder. No fee will be charged for any subsequently designated reachable party;

c) A fee of 0,001 EUR is charged for each instant payment order or positive response to a revocation request accepted by Banco de Portugal under Part I, Article 17, both to the CND TIPS holder to be debited and to the CND TIPS holder or SP TIPS technical account holder to be credited, regardless of the settlement of the instant payment order or the positive response to the revocation request;

d) No fee will be charged for liquidity transfer orders from CND TIPS to CNP, CND LBTR, sub-accounts, overnight deposit accounts, SP TIPS technical accounts or CND T2S.

7. FEES APPLICABLE TO SPs USING SETTLEMENT PROCEDURES FOR SP TIPS

Fees are charged for the use by an SP of the settlement procedure for SP TIPS as follows:

a) A fixed monthly fee of 3 000 EUR is charged for each SP TIPS technical account to the holder of the SP TIPS technical account;

b) A fixed monthly fee of 20 EUR is charged to the CND TIPS holder who made the designation for each reachable party, up to a maximum of 50, designated by the CND TIPS holder. No fee will be charged for any subsequently designated reachable party;

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Mod. 99999940/T – 01/14

c) A fee of 0,001 EUR is charged for each instant payment order or positive response to a revocation request accepted by Banco de Portugal under Part I, Article 17, both to the SP TIPS technical account holder to be debited and to the SP TIPS technical account holder to be credited, regardless of the settlement of the instant payment order or the positive response to the revocation request;

d) No fee will be charged for liquidity transfer orders from SP TIPS technical accounts to CND TIPS;

e) In addition to the fees indicated above, each SP is subject to a monthly fee based on the underlying gross volume of instant payments, near-instant payments and positive responses to revocation requests settled on the SP's own platform and permitted by the pre-funded positions in the SP TIPS technical account. For each month, each SP must report, no later than the third business day of the following month, the underlying gross volume of its settled instant payments, near-instant payments and positive revocation responses, rounded down to the nearest ten thousand. Banco de Portugal will use the reported underlying gross volume to calculate the unit fee for each settled instant payment, settled near-instant payment and settled positive response to a revocation request for the previous month according to the following table:

Reported underlying gross volume
From	To	Unit fee
0	10 000 000	EUR 0,00040
10 000 001	25 000 000	EUR 0,00030
25 000 001	100 000 000	EUR 0,00020
100 000 001		EUR 0,00015

6. Annex III of Instruction No. 16/2022, of 17 October, is amended as follows:

a) Point 11) shall read as follows:

«11) "Branch" (branch): a branch within the meaning of Article 4(1)(17) of Regulation (EU) No 575/2013 of the European Parliament and of the Council () or Article 4(1)(30) of Directive 2014/65/EU of the European Parliament and of the Council (), except in the case referred to in Article 9(8) of this guideline;

[*] 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 and amending Regulation (EU) No 648/2012 (OJ L 176 of 27.6.2013, p. 1).

Instrução n.o 15/2024 BO n.o 11/2024 2.º Suplemento • 2024/11/28 Themes Payment Systems :: Large Transaction Payment System
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(**) Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (OJ L 173 of 12.6.2014, p. 349).»;

b) Point 42) shall be replaced by the following:

«42) “Near instant payment” (Pagamento quase-imediato): a credit transfer order that complies with the Netherlands standard applicable to the immediate processing of SEPA credit transfers of the SEPA Credit Transfer Additional Optional Services [SCT AOS] NL Standard of the European Payments Council or the SEPA One-Leg Out Instant Credit Transfer (OCT Inst) mechanism of the European Payments Council;».

7. The provisions set out in this Instruction shall apply from 1 December 2024.