TARGET2 information session

October, 2007

NL

TARGET2

Marcel Otten

NL

Public project plan NL

GFS, UDFS

T2 user guide

Testing NL

Internal tests

(3CB)

Acceptance (CBs)

2007 2008

User testing activities(group 1)

User testing activities(group 2)

User testing activities(group 3)

Group 2 testingESCB planning

NL

User testing activitiesConnectivity tests

Interoperability tests (certification)

Free testing

Country testing Business day testing

at institution level at country level at European level

19/0

6

17/0

9

05/1

0

09/1

1

01/0

2

Group 2 testingDNB planning

NL

User testing activitiesconnect

Interoper tests

(certification)Free testing

Country testing Business day testing

at institution level

at country level at European level

15/0

5 st

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19/0

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17/0

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09/1

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15/0

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01/0

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01/09-28/09 NL test scenarios

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Group 2 Migration to PROD NL

Registration:•31/10/07 legal documents finalized•08/10/07 - 07/12/07 SSP registration forms PROD submitted,

activation date 18/02/08•05/11/07 - 07/12/07 e-ordering SWIFT for TARGET2 submitted,

activation date 02/02/08Migration:

•15/10/07 End of retail payments directly to TOP accounts•18/01/08 – 01/02/08 BKE with SSP, activation date 04/02/08•07/02/08 GO / NO-GO•11/02/08 – 15/02/08 Tests in PROD, download T2-dir, enter standing orders

limits•15/02/08 18:00 TOP close of day, no night-settlement•16/02/08 migration of dynamic data•18/02/08 07:00 opening TARGET2

4th Progress Report (June 2007)

• AS-pricing on system level and not legal entity level• AS-pricing models 4,5,6 for half of the transactions because of

double charging caused by usage of a technical account.• Publication of updated version of GFS.• Approval of TARGET2-guideline, which will contain the

main legal elements of TARGET2• Guidance for group-recognition• Information guide for TARGET2-users (describing procedures

for normal and abnormal situations) to be published in October 2007.

• Involvement of users regarding XML-messages in case of restart after disaster.

Legal Documents

Walter van Dalen

NL

Current situation (TOP)• Account in TOP; terms and conditions

signed• Signatures for approval documented on

signature card• Several other documents signed when

applicable

NLLegal Documents

Examples of other documents (generic):• Credit facilities• Debet facilities• Liquidity agreements• Authorizations (AS)

NLLegal Documents

• In TOP, the different contracts are defined by the local Central Bank (every country their own local rules)

• In TARGET2 the legal documents are (more) defined by the ECB (harmonization)

• This depends on the level of business (still some local authority)

NLLegal Documents

NLLegal Documents

ILC

NCBNCB NCBNCB

NCBNCBILC

NCBNCB

ILCNCBNCB

ILCNCBNCB

ILCNCBNCB ILC

ECBECBILC

NCBNCB

ILC

ILCNCBNCB

ILC

NCBNCBILC

NCBNCB

ILC

NCBNCBILC

NCBNCBILC

NCBNCBILC

NCBNCBILC

TARGETTARGETInterlinkingInterlinking

NetworkNetwork

NLLegal Documents

SSP

PM

Participant interface

Ancillarysystem

interface

SF

HAM

RM

ICM

Central banks

PHA (Reserve Management,

Intraday credit, ancillary systems, banks etc)

Ancillary systems

Retail, Large-value, Forex, Money market systems,

Securities settlement, CCP

Banks

Payments processing SD

CM

PAPSSCRSS

CROSS

CRAKS

CRISP

SSP

PM

Participant interface

Ancillarysystem

interface

SF

HAM

RM

ICM

Central banks

PHA (Reserve Management,

Intraday credit, ancillary systems, banks etc)

Ancillary systems

Retail, Large-value, Forex, Money market systems,

Securities settlement, CCP

BanksBanks

Payments processing SD

CM

PAPSSCRSS

CROSS

CRAKS

CRISP

NLLegal Documents

TARGET2-FRTARGET2-EI

TARGET2-IT

TARGET2-ES

TARGET2-NL

• Original idea:

NLLegal Documents

• Current situation:

NLLegal Documents

• Which documents in the new situation?– General terms and conditions– Conditions TARGET2-NL– Conditions HAM-NL– Monetary Policy Transactions Manual– Declaration of agreement with provisions of the

conditions for TARGET2-NL/HAM-NL, amended General Terms and Conditions and the amended Monetary Policy Transactions Manual

– Credit agreement– AL.Agreement (A and/or B)– Pledge agreement (PM account)

NLLegal Documents

Procedure • Basic documents will be send to

participants (DRAFT version)• Only documents that are applicable• Not for review, but for your information

to get familiar with content• All official documents for sign off will

follow in the next weeks• Every participant receives the

documents that are applicable

NLLegal Documents

Timeframe• October: send drafts to participants• October/November: send formal

documents to participants• 2nd week December: signed documents

back at DNB

NLLegal Documents

• QUESTIONS?

NLLegal Documents

SSP Registration forms

Relevant Informationwww.dnb.nl > Betalingsverkeer > Giraal betalingsverkeer > TARGET2 >

Downloads Registration Procedure Or

www.dnb.nl > Payments > Non cash-payments > TARGET2 > Downloads Registration Procedure

- User Guide for collection of Static Data- Registration forms

Direct Participants

Direct Participants DNB

Mandatory forms for all Direct Participant1000 Main form1015 Contact Items1018 Direct Debit DNB

Mandatory forms for Direct Participants with Reserve Requirements1200 Registration SF1300 Registration RM

Direct Participants

Use of form 1018_Direct_Debits

Use the prefilled form 1018_Direct_Debits_DNB only for the DNB direct debits

In case of other direct debits, use an additional form 1018_Direct_Debits

Example Form 1000

Example Form 1000

Example Form 1000

Sector codesS.12202 Dutch OfficesS.12203 Foreign OfficesS.1311 GovernmentS.1314 SVB

Example Form 1000

Example Form 1000

Example Form 1000

Example Form 1000

Example Form 1000

Example Form 1000

Registration of Branches

• In case a Branch uses its own BIC for Legal Entity:

Registration via form 4000

• In case a Branch uses the same Legal Entity as the Direct Participant:Registration via form 1013 Addressable BIC –

branch of direct paricipant

Example Form 1013

Example form 4000

Example form 4000

Example form 4000

Example form 5100

Example form 5100

Example form 5100

Example form 1102

Example form 5100

Ancillary System Equens Nederland

• Form 2002_AS_Mandate_Equens_KavelParticipant need to complete this form and send it to:

Equens NederlandTav M&S Supportovv Registratieformulieren TARGET2Postbus 305003503 AH UTRECHT

Ancillary System Euroclear Nederland

• Form 2002_AS_Mandate_EuroclearParticipant need to complete this form and send it to:

Euroclear NederlandRegistratie TARGET2Postbus 191631000 GD AMSTERDAM

Processing forms

• Filled in via Acrobat• Printed (if possible 2-sided)• Signed according to the ‘handtekeningkaart

DNB’• Send to:

De Nederlandsche Bank NVAfdeling Bve, sectie Euro TARGET2 Registration FormsPostbus 981000 AB AMSTERDAM

Change of Static Data

Change of Static Data

In case of change of Static Data the participant always needs to fill in a complete form

PLEASE NOTE:Changes of Static Data before the initial setup in

the SSP have to be done via a form with indication ‘new’.

As soon as DNB inserted the data in the SSP changes have to be done via a ‘modify’ form.

BKE exchange

Time schedule:Start 18/01/08Deadline 01/02/08Activation date 04/02/08

Procedure• Participant insert Pre-agreement in their CBT • Participant send a request for exchange via MT 999 to SSP

(incl: name contact person, phone, email etc.)• SSP checks request and insert also pre-agreement• SSP send out MT960• Participant send also MT960

BKE exchange

More information

UDFS Book 1, version 2.3 Chapter 9.1.1.2UDFS Book 2, version 2.3 Chapter 14.1.1.2