Bank of Portugal Notice No. 1/2008

Bank of Portugal Notices
Bank of Portugal Notice No. 1/2008

Given the importance of systemic risk inherent in payment systems and the need to reduce uncertainty regarding the legal effects associated with participation in these systems, Decree-Law No. 221/2000 of 9 September introduced into our legal order a set of rules regarding the finality of financial settlement carried out within the framework of payment systems, thereby transposing Directive No. 98/26/EC of the European Parliament and of the Council of 19 May in this domain.

The Bank of Portugal was legally mandated to designate, by notice, the payment systems covered by the aforementioned decree-law and which, therefore, will benefit from the irrevocability of transfer orders and the enforceability of guarantees constituted in favor of a participant or a bank belonging to the European System of Central Banks (ESCB).

Thus, considering the content of Article 14 of its Organic Law, approved by Law No. 5/98 of 31 January, and in accordance with the terms and for the purposes set forth in paragraph 1 of Article 13 of Decree-Law No. 221/2000 of 9 September, the Bank of Portugal determines the following:

Article 1.
The following systems are covered by the provisions of Decree-Law No. 221/2000 of 9 September regarding the finality of settlement in payment systems:
a) Trans-European Automated Real-time Gross settlement Express Transfer System TARGET2-PT; b) Large-value Payment System (SPGT2); c) Interbank Clearing System (SICOI); d) Settlement System for Other Depositors (SLOD).

Article 2.
This Notice enters into force on February 18, 2008, or on the date of the effective migration of TARGET2-PT to the TARGET2 Shared Platform if such migration can only occur on a later date.

Article 3.
From the entry into force of this Notice, Bank of Portugal Notice No. 8/2000, published in the Diário da República No. 261, Series I-B, of 11 November 2000, is revoked.

15 January 2008. - The Governor, Vítor Constâncio.