Instruction No. 10/2021

Instruction No. 10/2021 Official Gazette No. 6/2021 Supplement • 2021/06/21 .................................................................................................................................................................................................. Topics Markets :: Money Markets Mod. 99999940/T – 01/14 Index Text of the Instruction Text of the Instruction Subject: Amending Instruction No. 3/2015 On 6 May 2021, the Governing Council of the ECB adopted Guideline (EU) 2021/889 of the European Central Bank, amending Guideline (EU) 2015/510 of the European Central Bank (ECB/2014/60) on the framework for the implementation of Eurosystem monetary policy (ECB/2021/23). Therefore, in exercise of the powers conferred on it by Articles 12, 15, 16 and 24 of its Organic Law, approved by Law No. 5/98 of 31 January, in its current version, the Bank of Portugal determines: Instruction No. 3/2015 (Official Gazette No. 5, of 15-05-2015) is amended as follows:

1. Article 153, paragraphs 2 and 3 are amended, to read as follows:
2. Counterparties that are subject to supervision under Article 55(b)(i), but do not meet the own funds requirements established in Regulation (EU) No 575/2013, on an individual and/or consolidated basis, in accordance with supervisory requirements, and counterparties that are subject to comparable supervision, as referred to in Article 55(b)(iii), but do not meet own funds requirements comparable to those established in Regulation (EU) No 575/2013, on an individual and/or consolidated basis, shall have their access to Eurosystem monetary policy operations automatically limited for prudential reasons. The limitation must correspond to the level of access to Eurosystem monetary policy operations in force at the time the non-compliance is notified to the Eurosystem and does not prejudice any subsequent discretionary measures that the Eurosystem may adopt. If the own funds requirements have not been restored through adequate and timely measures, at the latest within a period of 20 weeks from

Instruction No. 10/2021 Official Gazette No. 6/2021 Supplement • 2021/06/21 Topics Markets :: Money Markets .................................................................................................................................................................................................. Mod. 99999940/T – 01/14 the reference date of the data collection exercise in which the non-compliance was identified, access to Eurosystem monetary policy operations by counterparties shall be automatically suspended for prudential reasons. 3. In the context of the assessment of the financial soundness of a counterparty, under Article 55(c), and without prejudice to the adoption of other discretionary measures, the Eurosystem may, for prudential reasons, limit access to Eurosystem monetary policy operations to the following counterparties: a) Counterparties whose information on capital and/or leverage ratios under Regulation (EU) No 575/2013 is incomplete or has not been provided to the relevant NCB and the ECB, in a timely manner and within a maximum period of 14 weeks from the end of the relevant quarter; b) Counterparties to whom the reporting of capital and leverage ratios is not required under Regulation (EU) No 575/2013, but whose comparable level information referred to in Article 55(b)(iii) is incomplete or has not been provided to the relevant NCB and the ECB, in a timely manner and within a maximum period of 14 weeks from the end of the relevant quarter. Access is restored as soon as the relevant information has been provided to the competent NCB and it is determined that the counterparty meets the financial soundness criterion under Article 55(c). If the relevant information has not been provided at the latest within a period of 20 weeks from the end of the relevant quarter, access of the counterparty to Eurosystem monetary policy operations is automatically suspended for prudential reasons. 2. Article 150(1) is amended, to read as follows:

1. If the counterparty fails to comply with any obligation referred to in Article 149(1), the Eurosystem shall apply a pecuniary sanction for each breach. The pecuniary sanction to be applied shall be calculated in accordance with the provisions of Annex VII.
2. The expression “BdP” is replaced by the expression “Bank”, in accordance with the Bank of Portugal Style Guide rules.
3. This Instruction shall enter into force on 28 June 2021.

Instruction No. 10/2021 Official Gazette No. 6/2021 Supplement • 2021/06/21 Topics Markets :: Money Markets .................................................................................................................................................................................................. Mod. 99999940/T – 01/14 5. This Instruction is republished in its entirety, and is available at https://www.bportugal.pt/instrucao/32015