Obecné zásady Evropské centrální banky (EU) 2024/3129 ze dne 13. srpna 2024 o správě zajištění při úvěrových operacích Eurosystému (ECB/2024/22)

Identifier:: 32024O3129
Status:: effective
Text language:: en

THE GOVERNING COUNCIL OF THE EUROPEAN CENTRAL BANK,

Having regard to the Treaty on the Functioning of the European Union, and in particular Article 127(2) thereof,

Having regard to the Statute of the European System of Central Banks and of the European Central Bank, and in particular Articles 3.1, 9.2, 12.1, 14.3, 17, 18.2, the first paragraph of Article 20, and Article 22 thereof,

This Guideline establishes harmonised rules and arrangements for the mobilisation and management of collateral eligible under Guideline (EU) 2015/510 of the European Central Bank (ECB/2014/60)Guideline (EU) 2015/510 of the European Central Bank of 19 December 2014 on the implementation of the Eurosystem monetary policy framework (General Documentation Guideline) (ECB/2014/60) (OJ L 91, 2.4.2015, p. 3 ). and/or Guideline ECB/2014/31 of the European Central BankGuideline ECB/2014/31 of the European Central Bank of 9 July 2014 on additional temporary measures relating to Eurosystem refinancing operations and eligibility of collateral and amending Guideline ECB/2007/9 (OJ L 240, 13.8.2014, p. 28 ). on a domestic or a cross-border basis for the purpose of collateralising Eurosystem credit operations. In the event of any discrepancy between this Guideline and Guideline (EU) 2015/510 (ECB/2014/60), this Guideline shall prevail in relation to matters that fall within its scope of application.

National central banks (NCBs) shall use the Eurosystem Collateral Management System (ECMS) as a single Eurosystem platform for mobilising and managing the collateral referred to in paragraph 1.

Notwithstanding paragraphs 1 and 2:

(a) NCBs may opt to manage the domestic mobilisation of credit claims and additional credit claims (ACCs) outside the ECMS, in which case Article 6(1), (2) and (3) shall not apply;

(b) NCBs shall mobilise retail mortgage-backed debt instruments (RMBDs) outside the ECMS.

In any case where assets are mobilised outside the ECMS, NCBs shall record information on the collateral value of these assets in the ECMS.

NCBs may also use the ECMS to manage collateral mobilised for any of the other purposes listed in Annex V.

Guideline (EU) 2015/510 of the European Central Bank of 19 December 2014 on the implementation of the Eurosystem monetary policy framework (General Documentation Guideline) (ECB/2014/60) (OJ L 91, 2.4.2015, p. 3 ).

(1) Article 18.1 of the Statute of the European System of Central Banks and of the European Central Bank requires central bank credit to be based on adequate collateral for Eurosystem credit operations.

(2) The assets eligible to be mobilised as collateral in Eurosystem credit operations are defined in Guideline (EU) 2015/510 of the European Central Bank (ECB/2014/60)Guideline (EU) 2015/510 of the European Central Bank of 19 December 2014 on the implementation of the Eurosystem monetary policy framework (General Documentation Guideline) (ECB/2014/60) (OJ L 91, 2.4.2015, p. 3 ). and Guideline ECB/2014/31 of the European Central BankGuideline ECB/2014/31 of the European Central Bank of 9 July 2014 on additional temporary measures relating to Eurosystem refinancing operations and eligibility of collateral and amending Guideline ECB/2007/9 (OJ L 240, 13.8.2014, p. 28 ). .

(3) The Eurosystem has established channels to facilitate the mobilisation of collateral on both a domestic and a cross-border basis using, inter alia, securities settlement systems (SSSs) and triparty agents (TPAs) and relying on arrangements between Eurosystem central banks to ensure that all marketable and non-marketable assets eligible for use in Eurosystem credit operations are made accessible to all counterparties.

(4) At the same time, the procedures for the mobilisation and management of collateral currently differ between the national central banks of Member States whose currency is the euro (NCBs), and each NCB implements its own practices and operates its own systems. As a result, counterparties are exposed to a diversity of procedures when providing collateral to the Eurosystem.

(5) In order to enhance the operational efficiency and transparency of Eurosystem procedures related to the mobilisation and management of collateral, NCBs should manage collateral mobilised by counterparties in a harmonised manner, namely via standardised and operationally uniform processes, regardless of where the collateral or the counterparty is situated.

(6) To this end, the Eurosystem has agreed on harmonised rules and arrangements for managing collateral and developed the Eurosystem Collateral Management System (ECMS) as a single Eurosystem platform that allows NCBs to manage eligible assets and cash mobilised as collateral by their counterparties.

(7) However, as legal requirements for the mobilisation of credit claims and additional credit claims (ACCs) differ across jurisdictions, NCBs should have the ability to manage the domestic mobilisation of such assets outside the ECMS. Furthermore, on account of their nature, retail mortgage-backed debt instruments (RMBDs) should be mobilised outside the ECMS.

(8) In addition to collateral mobilised for the purposes of collateralising Eurosystem credit operations, NCBs, at their discretion, may accept and manage collateral mobilised by counterparties for any of the other purposes listed in Annex V to this Guideline and should be able to rely on the services of the ECMS in that respect.

(9) To align Eurosystem procedures with agreed market standards for collateral management and thereby contribute to the efficiency of collateral management across the financial market, the provisions of this Guideline aim to follow the relevant rules set out in the Single Collateral Management Rulebook for Europe (SCoRE).

(10) Currently the channels via which counterparties may mobilise collateral in Eurosystem credit operations comprise the domestic mobilisation channel, the links mobilisation channel, the correspondent central banking model (CCBM) channel and, upon approval by the Eurosystem, the direct access mobilisation channel.

(11) The CCBM should be expanded to facilitate the mobilisation of marketable assets and non-marketable debt instruments backed by eligible credit claims (DECCs) (a) in TARGET2-Securities (T2S) auto-collateralisation transactions; and (b) for the other purposes listed in Annex V to this Guideline.

(12) Each NCB should have the ability to open accounts in eligible SSSs and/or to use the services of triparty agents (TPAs) in jurisdictions other than the NCB’s home jurisdiction without requiring the approval of the Eurosystem, including in cases where the home jurisdiction of the NCB does not have an eligible SSS or TPA.

(13) The Eurosystem has established eligibility criteria that must be fulfilled by SSSs, by links between SSSs, and by TPAs, where they are used for the purposes of mobilising eligible marketable assets and DECCs. Those criteria should be amended and consolidated in one single text for reasons of certainty, clarity and transparency.

(14) To benefit from the harmonised settlement procedures in T2S and its auto-collateralisation functionality, NCBs should receive marketable assets and DECCs only into accounts in T2S SSSs. The accounts in which a counterparty holds marketable assets and DECCs prior to mobilisation should continue to be permitted to be held in non-T2S SSSs.

(15) Non-marketable assets, with the exception of DECCs, cannot be settled in an SSS. To the extent that NCBs use the ECMS to mobilise credit claims and ACCs as collateral, NCBs should record information on these assets in the relevant internal asset account opened either in the books of the NCB of the Member State in which the counterparty is established or in the books of the NCB acting as correspondent central bank, as applicable.

(16) The Eurosystem should recover from counterparties external costs charged by central securities depositories (CSDs) and TPAs for marketable assets and DECCs mobilised as collateral. NCBs should be permitted to cover internal costs in relation to the mobilisation and management of credit claims, ACCs and RMBDs by charging fees to counterparties.

(17) The implementation of collateral management would benefit from the relevant provisions being contained in a separate legal act. This would enable parameters related to collateral management to be provided in a compact and self-contained form and enable the streamlining of amendments to the relevant framework promptly once the corresponding policy decisions are taken by the Governing Council.

(18) This Guideline therefore establishes harmonised rules and arrangements for NCBs to manage collateral mobilised by counterparties on a domestic and cross-border basis for the purpose of collateralising Eurosystem credit operations and the other purposes listed in Annex V to this Guideline, and replaces collateral management provisions contained in Guideline (EU) 2015/510 (ECB/2014/60) as described in Guideline (EU) 2024/3130 of the European Central Bank (ECB/2024/23)Guideline (EU) 2024/3130 of the European Central Bank of 13 August 2024 amending Guideline (EU) 2015/510 on the implementation of the Eurosystem monetary policy framework (ECB/2014/60) (ECB/2024/23) (OJ L, 2024/3130, 20.12.2024, ELI: http://data.europa.eu/eli/guideline/2024/3130/oj). ,

For the purposes of this Guideline the following definitions apply:

Guideline ECB/2014/31 of the European Central Bank of 9 July 2014 on additional temporary measures relating to Eurosystem refinancing operations and eligibility of collateral and amending Guideline ECB/2007/9 (OJ L 240, 13.8.2014, p. 28 ).

Article 1 Article 1 Subject matter and scope 1.This Guideline establishes harmonised rules and arrangements for the mobilisation and management of collateral eligible under Guideline (EU) 2015/510 of the European Central Bank (ECB/2014/60)Guideline (EU) 2015/510 of the European Central Bank of 19 December 2014 on the implementation of the Eurosystem monetary policy framework (General Documentation Guideline) (ECB/2014/60) (OJ L 91, 2.4.2015, p. 3 ). and/or Guideline ECB/2014/31 of the European Central BankGuideline ECB/2014/31 of the European Central Bank of 9 July 2014 on additional temporary measures relating to Eurosystem refinancing operations and eligibility of collateral and amending Guideline ECB/2007/9 (OJ L 240, 13.8.2014, p. 28 ). on a domestic or a cross-border basis for the purpose of collateralising Eurosystem credit operations. In the event of any discrepancy between this Guideline and Guideline (EU) 2015/510 (ECB/2014/60), this Guideline shall prevail in relation to matters that fall within its scope of application. 2.National central banks (NCBs) shall use the Eurosystem Collateral Management System (ECMS) as a single Eurosystem platform for mobilising and managing the collateral referred to in paragraph 1. 3.Notwithstanding paragraphs 1 and 2: (a) NCBs may opt to manage the domestic mobilisation of credit claims and additional credit claims (ACCs) outside the ECMS, in which case Article 6(1), (2) and (3) shall not apply;(b) NCBs shall mobilise retail mortgage-backed debt instruments (RMBDs) outside the ECMS. 4.In any case where assets are mobilised outside the ECMS, NCBs shall record information on the collateral value of these assets in the ECMS. 5.NCBs may also use the ECMS to manage collateral mobilised for any of the other purposes listed in Annex V.

Article 2 Article 2 Definitions

Article 3 Article 3 Account and pool structure 1.To facilitate the mobilisation and management of collateral, NCBs shall: (a) maintain asset accounts and cash accounts;(b) require counterparties to maintain relevant asset accounts and cash accounts. 2.NCBs shall allow their counterparties to authorise a third party to manage the counterparty’s designated asset accounts and/or cash accounts, in which case the following shall apply: (a) where a counterparty authorises a third party to manage its designated asset account, the counterparty’s asset account shall be managed by a third party sending instructions to, and receiving notices from, the NCB on behalf of the counterparty;(b) where a counterparty authorises a third party to manage its designated cash account, the primary MCA designated by the counterparty shall be co-managed (in accordance with Article 2.1(a) and (b) of Annex I, Part II of Guideline (EU) 2022/912 (ECB/2022/8)) by, or belong to, another TARGET participant. 3.For the purposes of receiving marketable assets and non-marketable debt instruments backed by eligible credit claims (DECCs) as collateral from counterparties NCBs may open external asset accounts. Such accounts shall only be opened in an eligible securities settlement system (eligible SSS). 4.NCBs shall open internal asset accounts for each counterparty in order to receive collateral from counterparties and/or to record information on the collateral mobilised by the counterparty. Separate internal asset accounts shall be opened for: (a) marketable assets and DECCs;(b) non-marketable assets other than DECCs. 5.NCBs shall use pooling to maintain collateral mobilised by its counterparties. 6.Each internal asset account and each collateral pool shall be identified by means of a unique and harmonised naming convention defined by the Eurosystem and set out in the document entitled Collateral management in Eurosystem credit operations – information for Eurosystem counterparties, which is published on the ECB’s website. 7.Subject to the requirement for separation of pools laid down in paragraph 8, part of the collateral value of mobilised collateral may be reserved within a counterparty’s collateral pool for purposes related to the collateralisation of Eurosystem credit operations or the other purposes listed in Annex V to this Guideline. 8.The collateral mobilised for the purposes of collateralising Eurosystem credit operations shall be maintained in a pool separate from the pools used for the management of collateral for other purposes referred to in paragraph 7. NCBs may maintain as many collateral pools per counterparty as required for these purposes. 9.NCBs may open several internal asset accounts per counterparty. One internal asset account shall be linked to only one collateral pool. One collateral pool may be linked to several internal asset accounts. 10.For the purposes of the provision of intraday credit to a counterparty, only the collateral pool maintained for collateralising Eurosystem credit operations shall be linked to the primary MCA in TARGET designated by the counterparty. 11.To support the execution of collateral management operations, NCBs shall debit the counterparty’s primary MCA in TARGET in order to facilitate the payment of outstanding obligations to the Eurosystem with respect to, among others, the following activities: (a) the repayment of maturing credit operations;(b) the processing of corporate events;(c) the mobilisation of cash as collateral;(d) the collection of fees.

Article 4 Article 4 Collateral mobilisation 1.Marketable assets and DECCs mobilised as collateral by a counterparty shall be delivered to an account held with an eligible SSS. 2.If the CSD where the asset is issued and the CSD where the asset is held are not identical, collateral shall only be mobilised if the SSSs operated by these two CSDs are connected by an eligible link. 3.If requested by another NCB (as home central bank (HCB)), an NCB (as CCB) shall maintain a segregated or omnibus securities account in an eligible SSS established in the jurisdiction where the CCB is established and shall hold the collateral on behalf of the HCB. 4.An NCB may, for the purposes of receiving collateral from its counterparties, open an account directly in an eligible SSS established in a jurisdiction other than that in which the NCB is established. 5.For the purposes of mobilising credit claims and ACCs as collateral, NCBs shall require counterparties to mobilise these assets to an asset account designated by the HCB. An NCB may opt to manage the domestic mobilisation of credit claims and ACCs outside the ECMS, in which case that NCB shall determine whether an asset account is required for mobilisation purposes. 6.Where cash is mobilised as collateral, it shall be mobilised at the instruction of the NCB or the counterparty by debiting the counterparty designated primary MCA and crediting the HCB’s account. 7.Credit claims shall only be mobilised as collateral via the correspondent central banking model (CCBM) for the purposes of collateralising Eurosystem credit operations. ACCs, RMBDs and fixed term deposits (FTDs) shall not be mobilised as collateral via the CCBM. 8.The legal effects of book entries (in either transfer booking mode or retain booking mode) on asset accounts shall be governed by the contractual or regulatory arrangements of the NCB with the counterparty. The use of accounts in mobilising assets shall be in accordance with the requirements under the national law relevant to the creation or release of security interests over such assets.

Article 5 Article 5 Mobilisation and demobilisation of marketable assets and DECCs 1.Where a counterparty seeks to mobilise or demobilise marketable assets or DECCs as collateral, NCBs shall, prior to accepting a request for such mobilisation or demobilisation, perform validation checks – as defined by the Eurosystem and set out in the document entitled Collateral management in Eurosystem credit operations – information for Eurosystem counterparties, which is published on the ECB’s website – in accordance with that document, on the mobilisation or demobilisation instructions submitted by the relevant counterparty. 2.Marketable assets and DECCs shall be mobilised on a free of payment (FOP) basis, with the exception of auto-collateralisation transactions, as referred to in Article 8, in respect of which settlement is performed on a delivery versus payment (DVP) basis. 3.Prior to accepting a demobilisation instruction, NCBs shall reduce the value of the relevant collateral pool and, if relevant, the credit line by an amount equal to the collateral value of the marketable assets or DECCs for which demobilisation is requested. If this reduction in the value of the collateral pool would result in the total value of the collateral pool becoming lower than the total credit position, the NCBs shall put the demobilisation request on hold and shall not carry out the adjustment to the collateral pool and, if relevant, the credit line. NCBs shall reject demobilisation instructions which remain on hold at the end of the day. 4.Final adjustments to asset positions and to the collateral pool shall become effective upon receipt of a settlement confirmation from T2S. 5.If requested by the HCB, an NCB shall act as CCB on behalf of such HCB in relation to the mobilisation of marketable assets and DECCs via the CCBM. In the case of mobilisation and demobilisation of marketable assets and DECCs via the CCBM, the HCB shall be responsible for checking the validity of the mobilisation or demobilisation request submitted by the counterparty, and the CCB shall be responsible for issues relating to the settlement of the instruction which require interaction with the CSD. The CCB shall ensure that the HCB receives all information exchanged between the CCB and T2S. 6.Notwithstanding paragraphs 1 to 5, the HCB may block the mobilisation and demobilisation of marketable assets and DECCs on material grounds, including but not limited to, an event of default or on the grounds of prudence. 7.Furthermore, the HCB, or the CCB in the case of the CCBM, may reject a request to mobilise marketable assets and DECCs in respect of which a counterparty has not submitted the required taxation documentation or other documentation required by the HCB, or the CCB, as appropriate.

Article 6 Article 6 Mobilisation and demobilisation of non-marketable assets other than DECCs 1.Where a counterparty seeks to register, mobilise or demobilise credit claims or individual ACCs as collateral, NCBs shall, prior to accepting a request for such registration, mobilisation or demobilisation, perform validation checks – as defined by the Eurosystem and set out in the document entitled Collateral management in Eurosystem credit operations – information for Eurosystem counterparties, which is published on the ECB’s website – in accordance with that document, on the registration, mobilisation or demobilisation instructions submitted by the relevant counterparty. 2.Prior to mobilising a credit claim or an individual ACC as collateral, the counterparty seeking to do so must register that credit claim or individual ACC with the HCB, or – in the case of mobilisation via the CCBM – with the CCB. In either case, the HCB shall require the counterparty to provide, at a minimum, as part of the registration process, a set of core data elements as defined by the Eurosystem and set out in the document entitled Collateral management in Eurosystem credit operations – information for Eurosystem counterparties, which is published on the ECB’s website. 3.Without prejudice to the counterparties’ obligation under Article 101(1), point (a) (iv) of Guideline (EU) 2015/510 (ECB/2014/60), NCBs shall require counterparties to send updates to the core data elements on mobilised credit claims or individual ACCs provided in accordance with paragraph 2 within the course of the next business day whenever there is a change in those core data elements. 4.Where the credit claim is not governed by the law of the jurisdiction where the HCB is established, the HCB may use the CCBM for the mobilisation of the credit claim. For these purposes, the NCB acting as CCB in accordance with paragraph 5 shall prepare a set of terms and conditions, in the form set out in Annex III, to be agreed with the counterparty of the HCB to facilitate the mobilisation of credit claims governed by the law of the jurisdiction where the CCB is established. 5.If requested by the HCB, an NCB shall act as CCB on behalf of such HCB in relation to the mobilisation of credit claims, subject to all of the following conditions: (a) the credit claim fulfils the definition of credit claim set out in Article 2, point (13), of Guideline (EU) 2015/510 (ECB/2014/60) and satisfies all relevant eligibility criteria set out in that Guideline;(b) the credit claim may lawfully be mobilised between the counterparty and the HCB (represented when applicable by the CCB) using collateralisation arrangements governed by the law of the jurisdiction where the CCB is established;(c) the credit claim is mobilised for the purposes of collateralising Eurosystem credit operations. 6.The CCB shall take all measures and actions necessary under the law of the jurisdiction where it is established to ensure that a CCBM operation is valid, binding and enforceable. The CCB shall: (a) check the information on the credit claim provided by the counterparty against the eligibility criteria and, where applicable, the validity of signatures against the list of signatures received;(b) if requested, assist the HCB in determining whether there are close links, as described in Article 138 of Guideline (EU) 2015/510 (ECB/2014/60), between the counterparty and the relevant obligor under the asset, and in taking the necessary enforcement measures. The HCB shall assist the CCB (including, but not limited to, where the debtor and/or the creditor and/or the guarantor is located in the same jurisdiction as the HCB) by promptly providing the CCB with all documents and carrying out any actions or formalities requested by the CCB which are necessary to enable the CCB to perform its obligations. 7.The CCB shall be liable to the HCB only for the negligent execution of its obligations under paragraph 6, points (a) and (b). The CCB’s liability shall be assessed on the basis of the law of the jurisdiction where it is established, and shall be limited to the amount of the credit claim, excluding any consequential damage. 8.The CCB shall be liable to the HCB for the breach of any other obligations only in the event of gross negligence or wilful misconduct, and the CCB’s liability shall be assessed on the basis of the law of the jurisdiction where it is established. 9.An NCB shall, upon the request of an HCB, act as ACB in relation to the mobilisation of credit claims. An NCB acting as ACB shall advise the HCB on the mobilisation of the credit claim to ensure compliance with the legal requirements that apply in the jurisdiction where the ACB is established. In particular, and in the form of the terms and conditions set out in Annex IV, the ACB shall specify: (a) whether registration and notification is required and, if so, the rules and form to be complied with for such registration and notification;(b) other requirements to be fulfilled for the purpose of creating a valid and enforceable security interest over the credit claim;(c) whether the credit claim agreement must contain additional clauses to facilitate the creation by the HCB of a further security interest over the mobilised credit claim after its initial mobilisation. If required, the ACB shall provide assistance in executing the tasks necessary to fulfil the requirements mentioned in points (a) to (c). At the HCB’s request, and where the debtor and/or the guarantor are established in the jurisdiction where the ACB is established, the ACB shall provide relevant information on that debtor and/or guarantor, including close link checks and in-house credit assessment system (ICAS) rating. 10.The mobilisation and demobilisation of (a) RMBDs and (b) pools of ACCs shall be carried out in accordance with the procedures defined by the HCB. 11.Fixed term deposits (FTDs) shall be automatically mobilised as collateral as part of the settlement of the FTD. The settlement shall take place by debiting the counterparty’s primary MCA and crediting the HCB’s account.

Article 7 Article 7 Triparty collateral management services 1.NCBs shall allow counterparties to mobilise the following assets as collateral to the HCB using the triparty collateral management services of an eligible triparty agent (eligible TPA): (a) marketable assets and DECCs issued in the CSD operating the eligible SSS where the asset account is held;(b) marketable assets issued in a CSD whose SSS has an eligible link with the SSS where the asset account is held. 2.Mobilisation of marketable assets and DECCs using the services of a TPA in accordance with paragraph 1 may be carried out using the domestic, links, CCBM or direct access mobilisation channels, as applicable. 3.In the case of mobilisation via the CCBM, the CCB shall, at the HCB’s request, enter into contractual arrangements with the TPA in accordance with the criteria set out in Annex II. The following division of responsibility between the HCB and the CCB shall apply: (a) The HCB shall be responsible for checking that the counterparty is adequately collateralised prior to authorising the TPA to take further actions related to the processing of decreases or closures of a triparty transaction and the payment of corporate event proceeds.(b) The CCB shall be responsible for any issues relating to the management of the triparty transaction that require interaction with the TPA. The CCB shall ensure that the HCB receives all relevant information exchanged between the CCB and the TPA.

Article 8 Article 8 Auto-collateralisation 1.Auto-collateralisation shall be accessed via the domestic, links, CCBM or direct access mobilisation channels. 2.An NCB shall, at the request of an HCB, act as the CCB on behalf of that HCB for T2S auto-collateralisation transactions. 3.CCBM auto-collateralisation transactions shall be supported using either the transfer booking mode or the retain booking mode, as determined by the CCB. 4.To support the execution of auto-collateralisation transactions, each HCB shall define on a daily basis a list of marketable assets and DECCs eligible for use in auto-collateralisation. That list may include assets issued in the CSD operating the eligible SSS where the HCB holds an account, as well as assets issued in a CSD whose SSS has an eligible link with the eligible SSS.

Article 9 Article 9 Credit position management 1.NCBs shall update a counterparty’s credit position as part of the settlement of the related Eurosystem credit operation. 2.NCBs shall settle Eurosystem credit operations on a net basis, with the exception that in contingency situations they may settle such credit operations on a gross basis. 3.For counterparties with access to intraday credit in TARGET, all collateral value, other than that attributed to RMBDs, in the counterparty’s collateral pool dedicated to the collateralisation of Eurosystem credit operations that is neither required to collateralise Eurosystem monetary policy operations nor reserved shall be made available as a credit line in line with paragraph 4. 4.The value of the credit line shall be determined by the HCB in accordance with changes in the amount of the available collateral (i.e. a floating credit line), except in the case where the counterparty and/or the HCB set a maximum value of the credit line to limit the amount of intraday credit that may be obtained in TARGET (i.e. a maximum credit line). 5.Where, pursuant to paragraph 4, the HCB and the counterparty each set a different maximum value of the credit line, the maximum value shall be the lower of the two. 6.Where the maximum value of a credit line set by a counterparty hinders the settlement of a Eurosystem credit operation, the HCB may remove that maximum value.

(1) additional credit claim or ACC means an additional credit claim eligible under Article 4 of Guideline ECB/2014/31 excluding an RMBD;

Article 10 Article 10 Corporate events 1.The HCB shall notify its counterparties in advance of corporate events communicated by the CSD and involving marketable assets or DECCs that the counterparty has mobilised as collateral. 2.Where participation in a corporate event is voluntary or involves a choice of options, the HCB shall act in accordance with the corporate event instruction submitted by the counterparty by the response deadline set out in the NCB’s notification. If the counterparty does not submit a corporate event instruction, the default option communicated by the CSD, where applicable, shall apply. 3.Subject to paragraphs 4 and 5, in the case of a corporate event involving a cash flow from the issuer to the counterparty (i.e. positive cash flow), the HCB shall, following receipt of the corporate event proceeds, transfer such proceeds to one of the following accounts: (a) in the case of euro-denominated cash proceeds, the primary MCA designated by the counterparty;(b) in the case of non-euro-denominated cash proceeds, the non-euro cash account designated by the counterparty. 4.The HCB shall not transfer the corporate event proceeds referred to in paragraph 3 to the counterparty in any of the following cases: (a) the counterparty has insufficient collateral in its collateral pool (i.e. a margin call);(b) the collateral mobilised by the counterparty with the Eurosystem is blocked due to an event of default or on the grounds of prudence. 5.Euro-denominated cash proceeds shall be automatically mobilised as collateral to an amount not exceeding the amount of the margin call at 16:55 CET on the day on which the corporate event proceeds are received by the HCB if the margin call referred to in paragraph 4, point (a), remains outstanding at that time. Corporate event proceeds in excess of the amount required to collateralise the margin call (if any) shall be transferred to the counterparty by the HCB. 6.In the case of a positive cash flow on marketable assets or DECCs mobilised via the CCBM, the CCB shall credit the corporate event proceeds to the euro or non-euro cash account designated by the HCB, as relevant, to facilitate onward payment of the proceeds by the HCB to the primary MCA, for proceeds denominated in euro, or to the non-euro account designated by the counterparty, for non-euro-denominated proceeds. 7.For corporate events involving a cash flow from the counterparty to the issuer (i.e. negative cash flow), the HCB shall recover the amount due in one of the following ways: (a) in the case of euro-denominated cash proceeds, by debiting the primary MCA designated by the counterparty;(b) in the case of non-euro-denominated cash proceeds, by debiting the non-euro cash account designated by the counterparty or, where no debit authorisation is in place, by instructing the counterparty to credit the cash account specified by the HCB. 8.In the case of a negative cash flow on marketable assets or DECCs mobilised via the CCBM, the HCB shall credit the corporate event proceeds to the euro or non-euro cash account designated by the CCB, as relevant. 9.Where after payment has been made the CSD issues a reversal notice to reverse the cash and securities movements involved in the corporate event, the HCB shall take the following action: (a) in the case of a positive cash flow, the HCB shall debit the cash amount due from the same account to which the original payment was made;(b) in the case of a negative cash flow, the HCB shall credit the cash amount due to the same account from which the original payment was made. 10.If the reversal notice referred to in paragraph 9 relates to assets mobilised via the CCBM, the following shall apply: (a) in the case of a positive cash flow, the HCB shall credit the cash account designated by the CCB with the amount due;(b) in the case of a negative cash flow, the CCB shall credit the cash account designated by the HCB with the amount due. 11.For corporate event proceeds relating to marketable assets or DECCs mobilised via the CCBM, and unless the counterparty has provided the documentation necessary for tax relief or such relief applies as a matter of law, the CCB shall deduct or withhold the amount of any tax required to be deducted or withheld in respect of any proceeds, for which the CCB is liable or accountable to the tax authorities.

Article 11 Article 11 Daily management of collateral 1.NCBs shall perform a daily revaluation of mobilised collateral in accordance with the valuation and risk control rules laid down in Guideline (EU) 2015/510 (ECB/2014/60), Guideline ECB/2014/31 and Guideline (EU) 2016/65 of the European Central Bank (ECB/2015/35)Guideline (EU) 2016/65 of the European Central Bank of 18 November 2015 on the valuation haircuts applied in the implementation of the Eurosystem monetary policy framework (ECB/2015/35) (OJ L 14, 21.1.2016, p. 30 ). . 2.NCBs shall update credit positions and collateral positions daily to take into account accrued interest. 3.NCBs shall issue an end of day margin call between 19:00 CET and 19:30 CET on each business day if, following the revaluation of mobilised collateral and update of the credit positions and collateral positions referred to in paragraphs 1 and 2 respectively, there is no longer sufficient collateral in a given collateral pool. 4.NCBs may issue margin calls at any time, if a collateral insufficiency is detected during the day. 5.Where a margin call has not been resolved by 16:55 CET on a given business day, in order to collateralise the remaining deficit the HCB shall automatically mobilise the cash proceeds of a corporate event (if any) as collateral in accordance with Article 10(5). If the cash proceeds of the corporate event are not sufficient to fully resolve the margin call or in the absence of cash proceeds of the corporate event, the HCB shall automatically mobilise cash as collateral by debiting the primary MCA designated by the counterparty for an amount equal to the margin call. Following the daily revaluation of the collateral pool and the calculation of accrued interest on the cash mobilised as collateral, any cash mobilised in excess of the amount required to cover the margin call shall be automatically demobilised by the HCB. 6.NCBs shall perform, on a daily basis, a reconciliation of the holdings held on each asset account.

Article 12 Article 12 Fees 1.For marketable assets and DECCs, each NCB shall recover from its counterparties fees charged by CSDs and TPAs. For collateral mobilised via the CCBM, the HCB shall transfer the fees collected from its counterparties to the CCB. 2.In respect of credit claims, ACCs and RMBDs mobilised as collateral, the HCB or, in the case of collateral mobilised via the CCBM, the CCB shall determine whether to charge a fee. Where fees are charged, the level of the transaction fee and the service fee shall be determined by the HCB, or in the case of collateral mobilised via the CCBM, the CCB. 3.The HCB shall debit the fees due from the counterparty’s primary MCA in TARGET on a monthly basis.

Article 13 Article 13 Reallocation and realisation of collateral 1.Collateral may be reallocated from the asset account designated at the time of mobilisation to another asset account in the following circumstances: (a) in the event of a merger or acquisition involving two or more counterparties of the HCB, in which case the HCB may reallocate collateral from the asset accounts and collateral pools maintained by the merged or acquired entity;(b) in the event of a counterparty default, in which case the HCB may reallocate collateral from a counterparty account to an NCB account used for the realisation of collateral;(c) in the event that a counterparty maintains multiple collateral pools for different purposes, that counterparty may reallocate collateral from one counterparty asset account to another counterparty asset account in order to augment the amount of collateral held in a given collateral pool. 2.Where an HCB becomes aware of a counterparty default or suspension, the HCB reserves the right to immediately block all collateral management activity by the counterparty involved. 3.In the case of collateral mobilised via the CCBM, where the CCB is notified by the HCB of the counterparty’s default and on the HCB’s instruction, the CCB shall: (a) as applicable, take any necessary measures and actions to be performed under the law of the jurisdiction where the CCB is established to realise the collateral on behalf of the HCB;(b) as applicable, take any necessary measures and actions to be performed under the law of the jurisdiction where the CCB is established to enable the HCB to realise the collateral.

Article 14 Article 14 Contingency arrangements

Article 15 Article 15 Settlement discipline measures

Article 16 Article 16 Taking effect and implementation 1.This Guideline shall take effect on the day of its notification to the national central banks of the Member States whose currency is the euro. 2.The national central banks of the Member States whose currency is the euro shall take the necessary measures to comply with this Guideline and apply them from 18 November 2024 . They shall notify the ECB of the texts and means relating to those measures by 11 October 2024 at the latest.

Article 17 Article 17 Addressees

(2) asset account means: (a) in relation to the mobilisation of marketable assets and DECCs: (i) an account opened by an NCB in its own books; (ii) an account opened in the books of a securities settlement system or of another NCB acting as a correspondent central bank; (b) in relation to the mobilisation of non-marketable assets (other than DECCs): (i) an account opened by an NCB in its own books; (ii) an account opened in the books of another NCB acting as a correspondent central bank. Such accounts opened with an institution other than the home central bank are referred to as external asset accounts; such accounts opened in the books of the home central bank are referred to as internal asset accounts;

(3) assisting central bank or ACB means an NCB that provides assistance and advice to an HCB on the cross-border mobilisation of credit claims;

(4) auto-collateralisation means auto-collateralisation as defined in Article 2, point (7), of Guideline (EU) 2022/912 of the European Central Bank (ECB/2022/8)Guideline (EU) 2022/912 of the European Central Bank of 24 February 2022 on a new-generation Trans-European Automated Real-time Gross Settlement Express Transfer system (TARGET) and repealing Guideline ECB/2012/27 (ECB/2022/8) (OJ L 163, 17.6.2022, p. 84 ). ;

(5) business day means business day as defined in Article 2, point (13), of Guideline (EU) 2022/912 (ECB/2022/8);

(6) cash account means: (a) a main cash account; (b) a non-euro cash account;

(7) central securities depository or CSD means a central securities depository as defined in Article 2(1), point (1) of Regulation (EU) No 909/2014 of the European Parliament and of the CouncilRegulation (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 ). ;

(8) collateral means all marketable and non-marketable assets and cash eligible under Guideline (EU) 2015/510 (ECB/2014/60) and/or Guideline ECB/2014/31 to collateralise Eurosystem credit operations or mobilised for any of the other purposes listed in Annex V to this Guideline;

(9) collateral management data means eligible assets data, pricing information, and close links data;

(10) collateral realisation means the process by which an NCB enforces its rights over assets mobilised as collateral in satisfaction of outstanding credit which has become due;

To facilitate the mobilisation and management of collateral, NCBs shall:

(a) maintain asset accounts and cash accounts;

(b) require counterparties to maintain relevant asset accounts and cash accounts.

NCBs shall allow their counterparties to authorise a third party to manage the counterparty’s designated asset accounts and/or cash accounts, in which case the following shall apply:

(a) where a counterparty authorises a third party to manage its designated asset account, the counterparty’s asset account shall be managed by a third party sending instructions to, and receiving notices from, the NCB on behalf of the counterparty;

(b) where a counterparty authorises a third party to manage its designated cash account, the primary MCA designated by the counterparty shall be co-managed (in accordance with Article 2.1(a) and (b) of Annex I, Part II of Guideline (EU) 2022/912 (ECB/2022/8)) by, or belong to, another TARGET participant.

For the purposes of receiving marketable assets and non-marketable debt instruments backed by eligible credit claims (DECCs) as collateral from counterparties NCBs may open external asset accounts. Such accounts shall only be opened in an eligible securities settlement system (eligible SSS).

NCBs shall open internal asset accounts for each counterparty in order to receive collateral from counterparties and/or to record information on the collateral mobilised by the counterparty. Separate internal asset accounts shall be opened for:

(a) marketable assets and DECCs;

(b) non-marketable assets other than DECCs.

NCBs shall use pooling to maintain collateral mobilised by its counterparties.

Each internal asset account and each collateral pool shall be identified by means of a unique and harmonised naming convention defined by the Eurosystem and set out in the document entitled Collateral management in Eurosystem credit operations – information for Eurosystem counterparties, which is published on the ECB’s website.

Subject to the requirement for separation of pools laid down in paragraph 8, part of the collateral value of mobilised collateral may be reserved within a counterparty’s collateral pool for purposes related to the collateralisation of Eurosystem credit operations or the other purposes listed in Annex V to this Guideline.

The collateral mobilised for the purposes of collateralising Eurosystem credit operations shall be maintained in a pool separate from the pools used for the management of collateral for other purposes referred to in paragraph 7. NCBs may maintain as many collateral pools per counterparty as required for these purposes.

NCBs may open several internal asset accounts per counterparty. One internal asset account shall be linked to only one collateral pool. One collateral pool may be linked to several internal asset accounts.

For the purposes of the provision of intraday credit to a counterparty, only the collateral pool maintained for collateralising Eurosystem credit operations shall be linked to the primary MCA in TARGET designated by the counterparty.

To support the execution of collateral management operations, NCBs shall debit the counterparty’s primary MCA in TARGET in order to facilitate the payment of outstanding obligations to the Eurosystem with respect to, among others, the following activities:

(a) the repayment of maturing credit operations;

(b) the processing of corporate events;

(d) the collection of fees.

Guideline (EU) 2024/3130 of the European Central Bank of 13 August 2024 amending Guideline (EU) 2015/510 on the implementation of the Eurosystem monetary policy framework (ECB/2014/60) (ECB/2024/23) (OJ L, 2024/3130, 20.12.2024, ELI: http://data.europa.eu/eli/guideline/2024/3130/oj).

(11) collateral reallocation means the process by which assets are reallocated from the account designated at the time of mobilisation to another account;

(12) collateral value means the amount of credit which may be granted against collateral provided by a counterparty after haircuts and other factors, as determined by the Eurosystem from time to time, whether related to the asset and/or the counterparty, have been deducted;

(13) collateral pool means the sum of the collateral values derived from assets and cash mobilised by a counterparty and held in it;

(14) collateral position means a record of the collateral value of the assets and cash mobilised as collateral;

(15) counterparty means: (a) an institution fulfilling the eligibility criteria laid down in Part Three of Guideline (EU) 2015/510 (ECB/2014/60) entitling it to access the Eurosystem’s monetary policy operations and, in respect of access to intraday credit, a participant fulfilling the eligibility criteria laid down in Article 10 of Part II of Annex I to Guideline (EU) 2022/912 (ECB/2022/8); or (b) an entity providing collateral managed by NCBs for any of the other purposes listed in Annex V to this Guideline;

(16) correspondent central bank or CCB means an NCB acting on behalf of the HCB in a CCBM arrangement;

(17) correspondent central banking model or CCBM means an arrangement established by the Eurosystem with the aim of enabling counterparties to mobilise eligible assets on a cross-border basis, in which national central banks act as custodians for, and as agents of, one another, and pursuant to which: (a) the HCB provides credit or liquidity to the counterparty based on eligible assets held by or to the order of the counterparty in an account designated by the CCB; (b) the CCB acts on behalf of the HCB in respect of such eligible assets and provides assistance and advice; and (c) in specified cases in relation to credit claims, the ACB provides assistance and advice;

(18) credit claim means a credit claim eligible under Article 2(13) of Guideline (EU) 2015/510 (ECB/2014/60);

(19) credit line means the collateral value available to collateralise intraday credit in TARGET;

(20) credit position means the amount of credit extended to a counterparty by the HCB, including any collateral value in the collateral pool that is reserved for a specific purpose;

Marketable assets and DECCs mobilised as collateral by a counterparty shall be delivered to an account held with an eligible SSS.

If the CSD where the asset is issued and the CSD where the asset is held are not identical, collateral shall only be mobilised if the SSSs operated by these two CSDs are connected by an eligible link.

If requested by another NCB (as home central bank (HCB)), an NCB (as CCB) shall maintain a segregated or omnibus securities account in an eligible SSS established in the jurisdiction where the CCB is established and shall hold the collateral on behalf of the HCB.

An NCB may, for the purposes of receiving collateral from its counterparties, open an account directly in an eligible SSS established in a jurisdiction other than that in which the NCB is established.

For the purposes of mobilising credit claims and ACCs as collateral, NCBs shall require counterparties to mobilise these assets to an asset account designated by the HCB. An NCB may opt to manage the domestic mobilisation of credit claims and ACCs outside the ECMS, in which case that NCB shall determine whether an asset account is required for mobilisation purposes.

Where cash is mobilised as collateral, it shall be mobilised at the instruction of the NCB or the counterparty by debiting the counterparty designated primary MCA and crediting the HCB’s account.

Credit claims shall only be mobilised as collateral via the correspondent central banking model (CCBM) for the purposes of collateralising Eurosystem credit operations. ACCs, RMBDs and fixed term deposits (FTDs) shall not be mobilised as collateral via the CCBM.

The legal effects of book entries (in either transfer booking mode or retain booking mode) on asset accounts shall be governed by the contractual or regulatory arrangements of the NCB with the counterparty. The use of accounts in mobilising assets shall be in accordance with the requirements under the national law relevant to the creation or release of security interests over such assets.

(21) cross-border mobilisation means the mobilisation of: (a) marketable assets: (i) held in a Member State different to that of the HCB; (ii) issued in a Member State different to that of the HCB and held in the Member State of the HCB; (b) DECCs issued and held in a Member State different to that of the HCB; (c) credit claims governed by a law other than the law of the jurisdiction where the HCB is established; (d) ACCs governed by a law other than the law of the jurisdiction where the NCB receiving the collateral is established;

(22) direct access mobilisation means the mobilisation of marketable assets and DECCs where the NCB receives such assets into a securities account held by that NCB with a CSD located in a jurisdiction other than that in which the NCB is established;

(23) direct link means an arrangement between two SSSs operated by CSDs, where one CSD becomes a direct participant in the SSS operated by the other CSD by opening a securities account, to allow the transfer of securities through a book-entry process;

(24) domestic mobilisation means: (a) in respect of marketable assets and DECCs, the mobilisation of an asset issued and held in a CSD located in the same jurisdiction where the HCB is established; (b) in respect of credit claims and ACCs, the mobilisation of credit claims and ACCs governed by the law of the jurisdiction where the HCB is established; and (c) in respect of RMBDs, RMBDs issued by a counterparty established in the Member State of the HCB;

(25) eligible assets means marketable and non-marketable assets eligible under Guideline (EU) 2015/510 (ECB/2014/60) and Guideline ECB/2014/31;

(26) eligible link means a direct or relayed link that the Eurosystem has deemed compliant with the eligibility criteria laid down in Annex I and is included in the Eurosystem’s list of eligible links published on the ECB’s website. An eligible relayed link is composed of underlying eligible direct links;

(27) eligible securities settlement system or eligible SSS means an SSS operated by a CSD that the Eurosystem has deemed compliant with the eligibility criteria laid down in Annex I and is included in the Eurosystem’s list of eligible SSSs published on the ECB’s website;

(28) eligible triparty agent or eligible TPA means a TPA that is operated by a CSD that the Eurosystem has deemed compliant with the eligibility criteria laid down in Annex II and is included in the Eurosystem’s list of eligible TPAs published on the ECB’s website;

(29) euro area means pertaining to or established in a Member State whose currency is the euro;

(30) Eurosystem means the ECB and the NCBs;

Where a counterparty seeks to mobilise or demobilise marketable assets or DECCs as collateral, NCBs shall, prior to accepting a request for such mobilisation or demobilisation, perform validation checks – as defined by the Eurosystem and set out in the document entitled Collateral management in Eurosystem credit operations – information for Eurosystem counterparties, which is published on the ECB’s website – in accordance with that document, on the mobilisation or demobilisation instructions submitted by the relevant counterparty.

Marketable assets and DECCs shall be mobilised on a free of payment (FOP) basis, with the exception of auto-collateralisation transactions, as referred to in Article 8, in respect of which settlement is performed on a delivery versus payment (DVP) basis.

Prior to accepting a demobilisation instruction, NCBs shall reduce the value of the relevant collateral pool and, if relevant, the credit line by an amount equal to the collateral value of the marketable assets or DECCs for which demobilisation is requested. If this reduction in the value of the collateral pool would result in the total value of the collateral pool becoming lower than the total credit position, the NCBs shall put the demobilisation request on hold and shall not carry out the adjustment to the collateral pool and, if relevant, the credit line. NCBs shall reject demobilisation instructions which remain on hold at the end of the day.

Final adjustments to asset positions and to the collateral pool shall become effective upon receipt of a settlement confirmation from T2S.

If requested by the HCB, an NCB shall act as CCB on behalf of such HCB in relation to the mobilisation of marketable assets and DECCs via the CCBM. In the case of mobilisation and demobilisation of marketable assets and DECCs via the CCBM, the HCB shall be responsible for checking the validity of the mobilisation or demobilisation request submitted by the counterparty, and the CCB shall be responsible for issues relating to the settlement of the instruction which require interaction with the CSD. The CCB shall ensure that the HCB receives all information exchanged between the CCB and T2S.

Notwithstanding paragraphs 1 to 5, the HCB may block the mobilisation and demobilisation of marketable assets and DECCs on material grounds, including but not limited to, an event of default or on the grounds of prudence.

Furthermore, the HCB, or the CCB in the case of the CCBM, may reject a request to mobilise marketable assets and DECCs in respect of which a counterparty has not submitted the required taxation documentation or other documentation required by the HCB, or the CCB, as appropriate.

(31) Eurosystem credit operations means Eurosystem credit operations as defined in Article 2, point (31), of Guideline (EU) 2015/510 (ECB/2014/60);

(32) home central bank or HCB means the NCB of the Member State in which a counterparty is established and which grants credit to that counterparty in Eurosystem credit operations;

(33) intermediary securities settlement system or intermediary SSS means an SSS which acts as an intermediary between an issuer SSS and an investor SSS;

(34) intraday credit means intraday credit as defined in Article 2, point (35), of Guideline (EU) 2022/912 (ECB/2022/8);

(35) investor securities settlement system or investor SSS means an SSS with an eligible link to an issuer SSS in order to facilitate the transfer of securities from participants in the issuer SSS to participants in the investor SSS;

(36) issuer securities settlement system or issuer SSS means an SSS operated by the CSD in which securities have been issued;

(37) links mobilisation channel means the mobilisation of marketable assets using an eligible link;

(38) main cash account or MCA means a main cash account held for the purposes of and in accordance with the provisions of Guideline (EU) 2022/912 (ECB/2022/8);

(39) marketable assets means any of the following: (a) marketable assets as defined in Article 2, point (59), of Guideline (EU) 2015/510 (ECB/2014/60); (b) marketable assets eligible as collateral under Articles 3, 5 and/or 7 of Guideline ECB/2014/31;

(40) mobilisation channels means the series of procedures and arrangements established to allow the mobilisation of eligible assets by counterparties, and comprises the domestic mobilisation channel, the links mobilisation channel, the CCBM channel and the direct access mobilisation channel;

Where a counterparty seeks to register, mobilise or demobilise credit claims or individual ACCs as collateral, NCBs shall, prior to accepting a request for such registration, mobilisation or demobilisation, perform validation checks – as defined by the Eurosystem and set out in the document entitled Collateral management in Eurosystem credit operations – information for Eurosystem counterparties, which is published on the ECB’s website – in accordance with that document, on the registration, mobilisation or demobilisation instructions submitted by the relevant counterparty.

Prior to mobilising a credit claim or an individual ACC as collateral, the counterparty seeking to do so must register that credit claim or individual ACC with the HCB, or – in the case of mobilisation via the CCBM – with the CCB. In either case, the HCB shall require the counterparty to provide, at a minimum, as part of the registration process, a set of core data elements as defined by the Eurosystem and set out in the document entitled Collateral management in Eurosystem credit operations – information for Eurosystem counterparties, which is published on the ECB’s website.

Without prejudice to the counterparties’ obligation under Article 101(1), point (a) (iv) of Guideline (EU) 2015/510 (ECB/2014/60), NCBs shall require counterparties to send updates to the core data elements on mobilised credit claims or individual ACCs provided in accordance with paragraph 2 within the course of the next business day whenever there is a change in those core data elements.

Where the credit claim is not governed by the law of the jurisdiction where the HCB is established, the HCB may use the CCBM for the mobilisation of the credit claim. For these purposes, the NCB acting as CCB in accordance with paragraph 5 shall prepare a set of terms and conditions, in the form set out in Annex III, to be agreed with the counterparty of the HCB to facilitate the mobilisation of credit claims governed by the law of the jurisdiction where the CCB is established.

If requested by the HCB, an NCB shall act as CCB on behalf of such HCB in relation to the mobilisation of credit claims, subject to all of the following conditions:

(a) the credit claim fulfils the definition of credit claim set out in Article 2, point (13), of Guideline (EU) 2015/510 (ECB/2014/60) and satisfies all relevant eligibility criteria set out in that Guideline;

(b) the credit claim may lawfully be mobilised between the counterparty and the HCB (represented when applicable by the CCB) using collateralisation arrangements governed by the law of the jurisdiction where the CCB is established;

The CCB shall take all measures and actions necessary under the law of the jurisdiction where it is established to ensure that a CCBM operation is valid, binding and enforceable. The CCB shall:

(a) check the information on the credit claim provided by the counterparty against the eligibility criteria and, where applicable, the validity of signatures against the list of signatures received;

(b) if requested, assist the HCB in determining whether there are close links, as described in Article 138 of Guideline (EU) 2015/510 (ECB/2014/60), between the counterparty and the relevant obligor under the asset, and in taking the necessary enforcement measures.

The HCB shall assist the CCB (including, but not limited to, where the debtor and/or the creditor and/or the guarantor is located in the same jurisdiction as the HCB) by promptly providing the CCB with all documents and carrying out any actions or formalities requested by the CCB which are necessary to enable the CCB to perform its obligations.

The CCB shall be liable to the HCB only for the negligent execution of its obligations under paragraph 6, points (a) and (b). The CCB’s liability shall be assessed on the basis of the law of the jurisdiction where it is established, and shall be limited to the amount of the credit claim, excluding any consequential damage.

The CCB shall be liable to the HCB for the breach of any other obligations only in the event of gross negligence or wilful misconduct, and the CCB’s liability shall be assessed on the basis of the law of the jurisdiction where it is established.

An NCB shall, upon the request of an HCB, act as ACB in relation to the mobilisation of credit claims. An NCB acting as ACB shall advise the HCB on the mobilisation of the credit claim to ensure compliance with the legal requirements that apply in the jurisdiction where the ACB is established. In particular, and in the form of the terms and conditions set out in Annex IV, the ACB shall specify:

(a) whether registration and notification is required and, if so, the rules and form to be complied with for such registration and notification;

(b) other requirements to be fulfilled for the purpose of creating a valid and enforceable security interest over the credit claim;

(c) whether the credit claim agreement must contain additional clauses to facilitate the creation by the HCB of a further security interest over the mobilised credit claim after its initial mobilisation.

If required, the ACB shall provide assistance in executing the tasks necessary to fulfil the requirements mentioned in points (a) to (c).

At the HCB’s request, and where the debtor and/or the guarantor are established in the jurisdiction where the ACB is established, the ACB shall provide relevant information on that debtor and/or guarantor, including close link checks and in-house credit assessment system (ICAS) rating.

The mobilisation and demobilisation of (a) RMBDs and (b) pools of ACCs shall be carried out in accordance with the procedures defined by the HCB.

Fixed term deposits (FTDs) shall be automatically mobilised as collateral as part of the settlement of the FTD. The settlement shall take place by debiting the counterparty’s primary MCA and crediting the HCB’s account.

Guideline (EU) 2022/912 of the European Central Bank of 24 February 2022 on a new-generation Trans-European Automated Real-time Gross Settlement Express Transfer system (TARGET) and repealing Guideline ECB/2012/27 (ECB/2022/8) (OJ L 163, 17.6.2022, p. 84 ).

(41) national central bank or NCB means a national central bank of a Member State whose currency is the euro;

(42) non-marketable asset means: (a) a non-marketable asset as defined in Article 2, point (70), of Guideline (EU) 2015/510 (ECB/2014/60); (b) an additional credit claim eligible under Article 4 of Guideline ECB/2014/31;

(43) non-marketable debt instrument backed by eligible credit claims or DECC means a non-marketable debt instrument backed by eligible credit claims as defined in Article 2, point (70a), of Guideline (EU) 2015/510 (ECB/2014/60);

(44) pooling means the operational method used by NCBs to maintain collateral mobilised by counterparties, whereby the counterparty makes collateral available to an NCB to collateralise credit from that NCB, and in which individual eligible assets are not linked to any specific Eurosystem credit operation, with the exception of RMBDs which are linked to a specific credit operation;

(45) primary MCA means the MCA, owned by the counterparty or a third party, and designated by the counterparty for the settlement of payments related to the management of collateral;

(46) relayed link means a link established between SSSs operated by two different CSDs that execute securities transactions or transfers through a third SSS operated by a CSD acting as an intermediary or, in the case of SSSs operated by CSDs participating in TARGET2-Securities, through several SSSs operated by CSDs acting as intermediaries;

(47) retail mortgage-backed debt instrument or RMBD means an asset eligible for use as collateral in accordance with Article 107 of Guideline (EU) 2015/510 (ECB/2014/60) and Article 4 of Guideline ECB/2014/31;

(48) retain booking mode means the retention of marketable assets and/or DECCs that are mobilised as collateral on a securities account of the counterparty;

(49) securities settlement system or SSS means a securities settlement system as defined in Article 2(1), point (10), of Regulation (EU) No 909/2014;

(50) TARGET means the new-generation Trans-European Automated Real-time Gross Settlement Express Transfer system, regulated under Guideline (EU) 2022/912 (ECB/2022/8);

NCBs shall allow counterparties to mobilise the following assets as collateral to the HCB using the triparty collateral management services of an eligible triparty agent (eligible TPA):

(a) marketable assets and DECCs issued in the CSD operating the eligible SSS where the asset account is held;

(b) marketable assets issued in a CSD whose SSS has an eligible link with the SSS where the asset account is held.

Mobilisation of marketable assets and DECCs using the services of a TPA in accordance with paragraph 1 may be carried out using the domestic, links, CCBM or direct access mobilisation channels, as applicable.

In the case of mobilisation via the CCBM, the CCB shall, at the HCB’s request, enter into contractual arrangements with the TPA in accordance with the criteria set out in Annex II. The following division of responsibility between the HCB and the CCB shall apply:

(a) The HCB shall be responsible for checking that the counterparty is adequately collateralised prior to authorising the TPA to take further actions related to the processing of decreases or closures of a triparty transaction and the payment of corporate event proceeds.

(b) The CCB shall be responsible for any issues relating to the management of the triparty transaction that require interaction with the TPA. The CCB shall ensure that the HCB receives all relevant information exchanged between the CCB and the TPA.

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 ).

(51) transfer booking mode means the delivery of marketable assets or DECCs that are mobilised as collateral from a securities account of the counterparty to a securities account of the NCB;

(52) T2S services means T2S services as defined in Article 2, point (20), of Guideline ECB/2012/13 of the European Central BankGuideline ECB/2012/13 of the European Central Bank of 18 July 2012 on TARGET2-Securities (OJ L 215, 11.8.2012, p. 19 ). .

Auto-collateralisation shall be accessed via the domestic, links, CCBM or direct access mobilisation channels.

An NCB shall, at the request of an HCB, act as the CCB on behalf of that HCB for T2S auto-collateralisation transactions.

CCBM auto-collateralisation transactions shall be supported using either the transfer booking mode or the retain booking mode, as determined by the CCB.

To support the execution of auto-collateralisation transactions, each HCB shall define on a daily basis a list of marketable assets and DECCs eligible for use in auto-collateralisation. That list may include assets issued in the CSD operating the eligible SSS where the HCB holds an account, as well as assets issued in a CSD whose SSS has an eligible link with the eligible SSS.

Guideline ECB/2012/13 of the European Central Bank of 18 July 2012 on TARGET2-Securities (OJ L 215, 11.8.2012, p. 19 ).

NCBs shall update a counterparty’s credit position as part of the settlement of the related Eurosystem credit operation.

NCBs shall settle Eurosystem credit operations on a net basis, with the exception that in contingency situations they may settle such credit operations on a gross basis.

For counterparties with access to intraday credit in TARGET, all collateral value, other than that attributed to RMBDs, in the counterparty’s collateral pool dedicated to the collateralisation of Eurosystem credit operations that is neither required to collateralise Eurosystem monetary policy operations nor reserved shall be made available as a credit line in line with paragraph 4.

The value of the credit line shall be determined by the HCB in accordance with changes in the amount of the available collateral (i.e. a floating credit line), except in the case where the counterparty and/or the HCB set a maximum value of the credit line to limit the amount of intraday credit that may be obtained in TARGET (i.e. a maximum credit line).

Where, pursuant to paragraph 4, the HCB and the counterparty each set a different maximum value of the credit line, the maximum value shall be the lower of the two.

Where the maximum value of a credit line set by a counterparty hinders the settlement of a Eurosystem credit operation, the HCB may remove that maximum value.

Guideline (EU) 2016/65 of the European Central Bank of 18 November 2015 on the valuation haircuts applied in the implementation of the Eurosystem monetary policy framework (ECB/2015/35) (OJ L 14, 21.1.2016, p. 30 ).

The HCB shall notify its counterparties in advance of corporate events communicated by the CSD and involving marketable assets or DECCs that the counterparty has mobilised as collateral.

Where participation in a corporate event is voluntary or involves a choice of options, the HCB shall act in accordance with the corporate event instruction submitted by the counterparty by the response deadline set out in the NCB’s notification. If the counterparty does not submit a corporate event instruction, the default option communicated by the CSD, where applicable, shall apply.

Subject to paragraphs 4 and 5, in the case of a corporate event involving a cash flow from the issuer to the counterparty (i.e. positive cash flow), the HCB shall, following receipt of the corporate event proceeds, transfer such proceeds to one of the following accounts:

(a) in the case of euro-denominated cash proceeds, the primary MCA designated by the counterparty;

(b) in the case of non-euro-denominated cash proceeds, the non-euro cash account designated by the counterparty.

The HCB shall not transfer the corporate event proceeds referred to in paragraph 3 to the counterparty in any of the following cases:

(a) the counterparty has insufficient collateral in its collateral pool (i.e. a margin call);

(b) the collateral mobilised by the counterparty with the Eurosystem is blocked due to an event of default or on the grounds of prudence.

Euro-denominated cash proceeds shall be automatically mobilised as collateral to an amount not exceeding the amount of the margin call at 16:55 CET on the day on which the corporate event proceeds are received by the HCB if the margin call referred to in paragraph 4, point (a), remains outstanding at that time. Corporate event proceeds in excess of the amount required to collateralise the margin call (if any) shall be transferred to the counterparty by the HCB.

In the case of a positive cash flow on marketable assets or DECCs mobilised via the CCBM, the CCB shall credit the corporate event proceeds to the euro or non-euro cash account designated by the HCB, as relevant, to facilitate onward payment of the proceeds by the HCB to the primary MCA, for proceeds denominated in euro, or to the non-euro account designated by the counterparty, for non-euro-denominated proceeds.

For corporate events involving a cash flow from the counterparty to the issuer (i.e. negative cash flow), the HCB shall recover the amount due in one of the following ways:

(a) in the case of euro-denominated cash proceeds, by debiting the primary MCA designated by the counterparty;

(b) in the case of non-euro-denominated cash proceeds, by debiting the non-euro cash account designated by the counterparty or, where no debit authorisation is in place, by instructing the counterparty to credit the cash account specified by the HCB.

In the case of a negative cash flow on marketable assets or DECCs mobilised via the CCBM, the HCB shall credit the corporate event proceeds to the euro or non-euro cash account designated by the CCB, as relevant.

Where after payment has been made the CSD issues a reversal notice to reverse the cash and securities movements involved in the corporate event, the HCB shall take the following action:

(a) in the case of a positive cash flow, the HCB shall debit the cash amount due from the same account to which the original payment was made;

(b) in the case of a negative cash flow, the HCB shall credit the cash amount due to the same account from which the original payment was made.

If the reversal notice referred to in paragraph 9 relates to assets mobilised via the CCBM, the following shall apply:

(a) in the case of a positive cash flow, the HCB shall credit the cash account designated by the CCB with the amount due;

(b) in the case of a negative cash flow, the CCB shall credit the cash account designated by the HCB with the amount due.

For corporate event proceeds relating to marketable assets or DECCs mobilised via the CCBM, and unless the counterparty has provided the documentation necessary for tax relief or such relief applies as a matter of law, the CCB shall deduct or withhold the amount of any tax required to be deducted or withheld in respect of any proceeds, for which the CCB is liable or accountable to the tax authorities.

NCBs shall perform a daily revaluation of mobilised collateral in accordance with the valuation and risk control rules laid down in Guideline (EU) 2015/510 (ECB/2014/60), Guideline ECB/2014/31 and Guideline (EU) 2016/65 of the European Central Bank (ECB/2015/35)Guideline (EU) 2016/65 of the European Central Bank of 18 November 2015 on the valuation haircuts applied in the implementation of the Eurosystem monetary policy framework (ECB/2015/35) (OJ L 14, 21.1.2016, p. 30 ). .

NCBs shall update credit positions and collateral positions daily to take into account accrued interest.

NCBs shall issue an end of day margin call between 19:00 CET and 19:30 CET on each business day if, following the revaluation of mobilised collateral and update of the credit positions and collateral positions referred to in paragraphs 1 and 2 respectively, there is no longer sufficient collateral in a given collateral pool.

NCBs may issue margin calls at any time, if a collateral insufficiency is detected during the day.

Where a margin call has not been resolved by 16:55 CET on a given business day, in order to collateralise the remaining deficit the HCB shall automatically mobilise the cash proceeds of a corporate event (if any) as collateral in accordance with Article 10(5). If the cash proceeds of the corporate event are not sufficient to fully resolve the margin call or in the absence of cash proceeds of the corporate event, the HCB shall automatically mobilise cash as collateral by debiting the primary MCA designated by the counterparty for an amount equal to the margin call. Following the daily revaluation of the collateral pool and the calculation of accrued interest on the cash mobilised as collateral, any cash mobilised in excess of the amount required to cover the margin call shall be automatically demobilised by the HCB.

NCBs shall perform, on a daily basis, a reconciliation of the holdings held on each asset account.

For marketable assets and DECCs, each NCB shall recover from its counterparties fees charged by CSDs and TPAs. For collateral mobilised via the CCBM, the HCB shall transfer the fees collected from its counterparties to the CCB.

In respect of credit claims, ACCs and RMBDs mobilised as collateral, the HCB or, in the case of collateral mobilised via the CCBM, the CCB shall determine whether to charge a fee. Where fees are charged, the level of the transaction fee and the service fee shall be determined by the HCB, or in the case of collateral mobilised via the CCBM, the CCB.

The HCB shall debit the fees due from the counterparty’s primary MCA in TARGET on a monthly basis.

Collateral may be reallocated from the asset account designated at the time of mobilisation to another asset account in the following circumstances:

(a) in the event of a merger or acquisition involving two or more counterparties of the HCB, in which case the HCB may reallocate collateral from the asset accounts and collateral pools maintained by the merged or acquired entity;

(b) in the event of a counterparty default, in which case the HCB may reallocate collateral from a counterparty account to an NCB account used for the realisation of collateral;

(c) in the event that a counterparty maintains multiple collateral pools for different purposes, that counterparty may reallocate collateral from one counterparty asset account to another counterparty asset account in order to augment the amount of collateral held in a given collateral pool.

Where an HCB becomes aware of a counterparty default or suspension, the HCB reserves the right to immediately block all collateral management activity by the counterparty involved.

In the case of collateral mobilised via the CCBM, where the CCB is notified by the HCB of the counterparty’s default and on the HCB’s instruction, the CCB shall:

(a) as applicable, take any necessary measures and actions to be performed under the law of the jurisdiction where the CCB is established to realise the collateral on behalf of the HCB;

(b) as applicable, take any necessary measures and actions to be performed under the law of the jurisdiction where the CCB is established to enable the HCB to realise the collateral.

An NCB shall have arrangements in place with its counterparties to accept mobilisation and demobilisation instructions via secure email or any other contingency communication channel if, in exceptional circumstances, a counterparty is unable to communicate with its HCB via the ECMS in user to application (U2A) mode or application to application (A2A) mode. In such circumstances, NCBs may act on behalf of their counterparties upon instruction received from them via secure email or any other contingency communication channel.

NCBs shall exchange information on penalties levied on, or due to, an NCB for settlement fails, as specified in the provisions of Title II, Chapter III of Regulation (EU) No 909/2014 that relate to collateral mobilised via the CCBM.

This Guideline shall take effect on the day of its notification to the national central banks of the Member States whose currency is the euro.

The national central banks of the Member States whose currency is the euro shall take the necessary measures to comply with this Guideline and apply them from 18 November 2024 . They shall notify the ECB of the texts and means relating to those measures by 11 October 2024 at the latest.

This Guideline is addressed to all Eurosystem central banks.

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