Regulation BCL 2018/No. 24 of 16 April 2018 implementing certain provisions of ECB/2018/3 amending Guideline (EU) 2015/510 on the implementation of the Eurosystem monetary policy framework (general documentation guideline) (ECB/2014/60)

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BANQUE CENTRALE DU LUXEMBOURG
Regulation of the Central Bank of Luxembourg 2018/ No. 24 of 16 April 2018 implementing certain provisions of Guideline ECB/2018/3 of 7 February 2018 amending Guideline (EU) 2015/510 concerning the implementation of the Eurosystem monetary policy framework (Guideline on general documentation) (ECB/2014/60) The Directorate of the Central Bank of Luxembourg, Having regard to the Treaty on the Functioning of the European Union and in particular Article 127(2), first indent; Having regard to the Statute of the European System of Central Banks and of the European Central Bank, and in particular Article 3.1, first indent, and Articles 9.2, 12.1, 14.3,
18.2 and 20, first paragraph;
Having regard to Article 108bis of the Constitution; Having regard to the Law of 23 December 1998 on the monetary status and the Central Bank of Luxembourg (hereinafter the 'Central Bank') as amended, in particular Articles 2(1), 2(2) and 34(1); Whereas:
(1) Eurosystem counterparties use securities settlement systems and links between securities settlement systems operated by central securities depositories in order to mobilise collateral suitable for Eurosystem credit operations.
(2) Under Article 18.2 of the Statute of the ESCB and of the ECB, the European Central Bank (ECB) must lay down the general principles for open market and credit operations carried out by itself or by the national central banks, including the announcement of the conditions under which they are willing to conduct such operations.

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(3) The Eurosystem has designed a single framework for negotiable and non-negotiable assets eligible as collateral, mobilisable within or across national borders. For the mobilisation of negotiable assets within the Eurosystem, securities settlement systems and links between such systems may only be used if the Eurosystem considers that they meet the required conditions. (4) Since 1998, the Eurosystem has applied usage standards to assess securities settlement systems and links between such systems, in order to determine whether they are usable in Eurosystem credit operations. (5) Given the adoption of Regulation (EU) No 909/2014 of the European Parliament and of the Council1 and the technical standards related thereto, including regulatory technical standards and implementing technical standards, and in view of the significant overlaps between the requirements of that Regulation and the Eurosystem's usage standards, the latter has decided to streamline the assessment procedure for securities settlement systems and links between such systems. (6) Guideline ECB/2015/510, as amended by Guideline ECB/2018/3, defines Eurosystem-specific requirements not covered by the requirements of Regulation (EU) No 909/2014 concerning central securities depositories (CSDs). (7) Under Section II, paragraph 1, of Annex VIa to Guideline ECB/2015/510, the operator of a securities settlement system must, for the purposes of legal certainty, demonstrate to the national central bank of the Member State in which the system in question operates, by reference to a binding legal document consisting of a duly executed contract or a reference to the mandatory general conditions of that operator, or in another way, that the requirements defined in Section II of Annex VIa to Guideline ECB/2015/510 are met. (8) The Central Bank implements the modifications made by Guideline ECB/2018/3 to Guideline ECB/2015/510 regarding the eligibility of securities settlement systems and links between systems by adopting this Regulation. 1 Regulation (EU) No 909/2014 of the European Parliament and of the Council of 23 July 2014 on improving securities settlement in the European Union and on central securities depositories and amending Directives 98/26/EC and 2014/65/EU and Regulation (EU) No 236/2012 (OJ L 257, 28.8.2014, p. 1).

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HAS ADOPTED THIS REGULATION:
Article 1. Eligibility criteria for the use of securities settlement systems and links between securities settlement systems in Eurosystem credit operations

1. Securities settlement systems are considered eligible for use in the context of Eurosystem credit operations if they meet the criteria (Section I), requirements (Section II) and procedures (Section III) of the Eurosystem set out in Annex VIa to Guideline ECB/2015/510, as amended by Guideline ECB/2018/3.
2. Securities settlement systems shall communicate to the Central Bank of Luxembourg on an annual basis and in the event of any legislative, regulatory or other change affecting the compliance of such systems with Eurosystem requirements, the pre-established form issued by the Central Bank of Luxembourg by which they attest that the Eurosystem requirements, defined in Section II of Annex VIa to Guideline ECB/2015/510, are satisfied.
3. The same arrangements shall apply to the determination of the eligibility of a direct link or a relayed link.
4. Securities settlement systems shall apply to the Central Bank of Luxembourg for the said form.
5. The Eurosystem and, in particular, the Central Bank may suspend or withdraw eligibility in the following cases:

• one or more of the eligibility criteria provided for in Section I of Annex VIa to Guideline ECB/2015/510, as amended, are not met;
• the use of the securities settlement system or the link could jeopardise the safety and efficiency of Eurosystem credit operations, the latter thereby incurring a risk of financial loss, or it is for any other reason considered, under the principle of prudence, to present a risk.

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Article 2. Entry into force
This Regulation shall enter into force on the day of its publication.
Article 3. Publication
This Regulation shall be published in the Official Journal of the Grand Duchy of Luxembourg and on the website of the Central Bank (www.bcl.lu).
CENTRAL BANK OF LUXEMBOURG
The Directorate