Legal framework Documents
Terms and conditions for participation in TARGET-Bundesbank
From a legal perspective, TARGET consists of a number of TARGET component systems. Based on the Eurosystem’s approach, and in an attempt to standardise the legal requirements for participation as far as possible, the “Terms and conditions for participation in TARGET-Bundesbank” are a literal copy of the “Harmonised conditions for participation in TARGET”, which were adopted within the framework of the TARGET Guideline. The Bundesbank simply made the necessary editorial changes (such as inserting the terms “Bank” and “TARGET-Bundesbank”, for example) and deleted a minimal amount of provisions which were not relevant to TARGET-Bundesbank.
TARGET Guidline
The legal basis for TARGET is the Guideline of the European Central Bank of 24 February 2022 on a new-generation Trans-European Automated Real-time Gross Settlement Express Transfer system (TARGET).
Access to TARGET for firms in resolution
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Please note that the answers to the questionnaire for TARGET and the component system TARGET-Bundesbank are currently being compiled. Until they have been finalised, the answers shown here will still relate to TARGET2 and TARGET2-Bundesbank, i.e. the predecessor (component) system. Owing to the legally comparable design of both systems, many of the answers given will remain relevant. However, due to the restructuring of the underlying legal framework (TARGET Guideline and the terms and conditions based thereon), the references contained in the document, amongst other things, are largely no longer valid.
Financial Stability Board questionnaire on continuity of access to financial market infrastructures (FMIs) for firms in resolution – responses for TARGET2
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On 6 July 2017, the Financial Stability Board (FSB) published its “Guidance on Continuity of Access to Financial Market Infrastructures (“FMIs”) for a Firm in Resolution”. The guidelines urge providers of critical financial market infrastructure services to “take appropriate steps to consider and plan for the interaction between the resolution regimes of their FMI service users and their own risk management framework”. By clarifying what actions they might take in a resolution scenario, providers help firms and authorities to be better prepared for resolution. The TARGET2 operator has since amended the relevant legal and operational documentation for TARGET2 to take account of the FSB guidance.
On 14 August 2020, the FSB published a common template designed to collect information concerning continuity of access to FMIs for firms in resolution. The idea behind the survey is to streamline the flow of information from FMIs to firms and authorities and reduce the number of inquiries being addressed to FMIs by banks and authorities. The template is designed in the form of a questionnaire to be filled out by all FMIs.
The Eurosystem, in its role as TARGET2 operator, supports the FSB’s initiative. You can view the responses to the questionnaire for TARGET2-Bundesbank below.
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If you have any questions about the general procedure or the answers for TARGET2-Bundesbank, please send us an e-mail.