Update of TARGET2 legislation

Guideline ECB/2011/2 of 17 March 2011 (OJ L of 1 April 2011) amended Guideline
ECB/2007/2 of 26 April 200721 on a Trans-European Automated Real-time Gross settlement
Express Transfer system (TARGET2) so that the ECB Governing Council may, as a
precautionary measure, make available overnight credit in TARGET2 to certain central
counterparties that are not licensed as credit institutions.
For this purpose, they must meet the following conditions: 1) provide clearing and settlement
services and, in addition, be authorised as central counterparties in accordance with
the applicable Union or national legislation; 2) be established in the euro area; 3) be subject
to supervision and/or oversight by competent authorities; 4) comply with the oversight
requirements for the location of infrastructures offering services in euro, as amended from
time to time and published on the ECB’s website; 5) have accounts in the Payments Module
of TARGET2; and 6) have access to intraday credit.

It is clarified that the guarantee funds that a central counterparty has to maintain under the
applicable legislation, including those required on oversight grounds, shall be remunerated
at the main refinancing operations rate minus 15 basis points, while other guarantee funds
shall be remunerated at the deposit rate.
The Guideline came into force on 3 April 2011 and shall apply from 11 April 2011.