13.4.2018   

EN

Official Journal of the European Union

L 95/23

(1)

Achieving a single monetary policy entails defining the tools, instruments and procedures to be used by the Eurosystem in order to implement such a policy in a uniform manner throughout the Member States whose currency is the euro.

(2)

With respect to monetary policy operations, Guideline (EU) 2015/510 of the European Central Bank (ECB/2014/60) (1) should be amended to incorporate some necessary technical and editorial refinements relating to operational aspects.

(3)

Some technical and editorial refinements relating to the counterparty framework need to be made. In addition, the Governing Council considers it necessary to introduce an automatic limitation of counterparties' access to monetary policy operations following a determination by a competent authority that they are ‘failing or likely to fail’.

(4)

The Eurosystem has developed a single framework for assets eligible as collateral so that all Eurosystem credit operations are carried out in a harmonised manner by means of the implementation of Guideline (EU) 2015/510 (ECB/2014/60) in all Member States whose currency is the euro. The Governing Council considers it necessary to introduce some changes to the Eurosystem's collateral framework including excluding investment funds as eligible issuers or guarantors due to specific risks arising from the instability of investment fund's financing arrangements, and changing the rules on exceptions to the prohibition of own-use of eligible assets, on the use of guaranteed unsecured debt instruments issued by a counterparty or a closely-linked entity, on the use of guaranteed unsecured debt instruments issued by a credit institution or a closely-linked entity and on the covered bond rating transparency requirements.

(5)

Commercial mortgage-backed securities (CMBS) should be made ineligible as collateral under the Eurosystem collateral framework as the risks and complexity of CMBS are substantially different, both in terms of underlying assets and structural features, from other asset-backed securities (ABS) accepted by the Eurosystem as collateral.

(6)

The Eurosystem requires the provision of comprehensive and standardised loan-level data on the pool of cash-flow generating assets backing ABS. Loan-level data must be submitted by the relevant parties to a loan-level data repository designated by the Eurosystem. Eurosystem requirements for designating loan-level data repositories, as well as the actual designation process, need to be further clarified in the interest of transparency.

(7)

Eligible assets are required to meet the Eurosystem's credit quality requirements specified in the Eurosystem credit assessment framework (ECAF), which lays down the procedures, rules and techniques to ensure that the Eurosystem's requirement for high credit standards for eligible assets is maintained. Some necessary technical and editorial refinements relating to the ECAF need to be made.

(8)

The rules on penalties to be applied by the Eurosystem in the case of breaches of counterparties' obligations need to be clarified.

(9)

Eurosystem counterparties make use of securities settlement systems (SSSs) and links between SSSs operated by central securities depositories (CSDs) in order to mobilise adequate collateral for Eurosystem credit operations.

(10)

Under Article 18.2 of the Statute of the European System of Central Banks and of the European Central Bank, the European Central Bank (ECB) must establish general principles for open market and credit operations carried out by the ECB or by the national central banks (NCBs), including for the announcement of the conditions under which they stand ready to enter into such transactions.

(11)

The Eurosystem has developed a single framework for marketable and non-marketable assets eligible as collateral, which may be mobilised on a domestic or cross-border basis. For mobilising marketable assets within the Eurosystem, SSSs and links between SSSs may only be used if they are assessed as eligible by the Eurosystem.

(12)

Since 1998 the Eurosystem has applied user standards for assessing SSSs and links between SSSs to determine their eligibility for use in Eurosystem credit operations.

(13)

With the adoption of Regulation (EU) No 909/2014 of the European Parliament and of the Council (2) and related technical standards comprising regulatory technical standards and implementing technical standards, and given the substantial overlap between the requirements of Regulation (EU) No 909/2014 and the Eurosystem user standards, the Eurosystem has decided to streamline the procedure for assessing SSSs and links between SSSs.

(14)

The requirements specific to the Eurosystem not covered by the requirements laid down in Regulation (EU) No 909/2014 in respect of CSDs should be defined.

(15)

The Eurosystem has developed standards for the use of tri-party agents (TPAs) in Eurosystem credit operations. All TPAs, offering either cross-border or domestic services, should be subject to similar assessment processes.

(16)

Several amendments need to be made to reflect the changes decided upon by the Governing Council with respect to the collateral eligibility criteria applicable to unsecured bank bonds for Eurosystem credit operations.

(17)

Several minor technical amendments need to be made in the interests of clarity, including with regard to multi-issuer securities, the implicit credit assessment rule and the non-compliance framework.

(18)

Therefore, Guideline (EU) 2015/510 (ECB/2014/60) should be amended accordingly,

(1)

Article 2 is amended as follows:

(2)

in Article 4, Table 1 is replaced by the following:

‘Table 1

Overview of characteristics of the Eurosystem monetary policy operations

(3)

in Article 6(2), point (f) is replaced by the following:

(4)

in Article 7(2), point (f) is replaced by the following:

(5)

in Article 8(2), point (e) is replaced by the following:

(6)

in Article 9(2), point (e) is replaced by the following:

(7)

In Article 10, paragraph 4 is replaced by the following:

‘4.   As regards their operational features, reverse transactions for monetary policy purposes:

(8)

in Article 11, paragraph 6 is replaced by the following:

‘6.   Counterparties participating in foreign exchange swaps for monetary policy purposes shall be subject to the eligibility criteria as laid down in Part Three, depending on the applicable procedure for the relevant operation.’;

(9)

in Article 12, paragraph 7 is replaced by the following:

‘7.   Counterparties participating in the collection of fixed term deposits shall be subject to the eligibility criteria as laid down in Part Three, depending on the applicable procedure for the relevant operation.’;

(10)

in Article 13, paragraph 6 is replaced by the following:

‘6.   Counterparties participating in the standard tender procedure for the issuance of ECB debt certificates shall be subject to the eligibility criteria as laid down in Part Three.’;

(11)

in Article 14, paragraph 4 is replaced by the following:

‘4.   Counterparties participating in outright transactions shall be subject to the eligibility criteria as laid down in Part Three.’;

(12)

in Article 25(2), Tables 5 and 6 are replaced by the following:

‘Table 5

Indicative time frame for the operational steps in standard tender procedures (times are stated in Central European Time (1))

Table 6

Indicative time frame for the operational steps in quick tender procedures (times are stated in CET (1))

(13)

Article 55 is replaced by the following:

‘Article 55

Eligibility criteria for participation in Eurosystem monetary policy operations

With regard to Eurosystem monetary policy operations, subject to Article 57, the Eurosystem shall only allow participation by institutions that fulfil the following criteria:

(14)

in Article 61, paragraph 1 is replaced by the following:

‘1.   The ECB shall publish an updated list of eligible marketable assets on its website, in accordance with the methodologies indicated on its website and shall update it every day on which TARGET2 is operational. Marketable assets included on the list of eligible marketable assets become eligible for use in Eurosystem credit operations upon their publication on the list. As an exception to this rule, in the specific case of debt instruments with same-day value settlement, the Eurosystem may grant eligibility from the date of issue. Assets assessed in accordance with Article 87(3) shall not be published on this list of eligible marketable assets.’;

(15)

Article 66 is amended as follows:

(16)

Article 67 is amended as follows:

(17)

Article 69 is amended as follows:

(18)

in Article 70, paragraph 1 is replaced by the following:

‘1.   In order to be eligible, debt instruments shall be issued by an issuer established in the EEA or in a non-EEA G10 country, subject to the exceptions in paragraphs 3 to 6 of this Article and in paragraph 4 of Article 81a. For marketable assets with more than one issuer, this requirement shall apply to each issuer.’;

(19)

Article 73(1)(b) is deleted;

(20)

Article 73(6) is deleted;

(21)

Article 81a is replaced by the following:

‘Article 81a

Eligibility criteria for certain unsecured debt instruments issued by credit institutions or investment firms, or by their closely linked entities

1.   By derogation from Article 64 and provided that they fulfil all other eligibility criteria, the following subordinated unsecured debt instruments issued by credit institutions or investment firms, or by their closely linked entities as referred to in Article 141(3), shall be eligible until maturity, provided that they are issued before 31 December 2018 and their subordination results neither from contractual subordination as defined in paragraph 2 nor from structural subordination pursuant to paragraph 3:

2.   For the purposes of paragraph 1, contractual subordination means subordination based on the terms and conditions of an unsecured debt instrument, irrespective of whether such subordination is statutorily recognised.

3.   Unsecured debt instruments issued by holding companies, including any intermediate holding companies, subject to national legislation implementing Directive 2014/59/EU or to similar recovery and resolution frameworks, shall be ineligible.

4.   For unsecured debt instruments issued by credit institutions or investment firms, or by their closely linked entities as referred to in Article 141(3), other than unsecured debt instruments issued by multilateral development banks or international organisations as referred to in Article 70(4), the issuer shall be established in the Union.

5.   Unsecured debt instruments which were eligible before 16 April 2018 but do not comply with the eligibility requirements set out in this Article shall remain eligible until 31 December 2018, provided that they fulfil all of the other eligibility criteria for marketable assets.

(*8)  Decision (EU) 2015/774 of the European Central Bank of 4 March 2015 on a secondary markets public sector asset purchase programme (OJ L 121, 14.5.2015, p. 20).’;"

(22)

in Article 84(a), point (iii) is replaced by the following:

(23)

Article 87 is amended as follows:

(24)

Article 90 is replaced by the following:

‘Article 90

Principal amount and coupons of credit claims

In order to be eligible, credit claims shall comply, until final redemption, with the following requirements:

(25)

in Article 138, paragraph 3 is amended as follows:

(26)

in Article 139, the following paragraphs 3 and 4 are added:

‘3.   If compliance with paragraph 1(b) needs to be verified, that is, for covered bonds, where the applicable legislation or prospectus do not exclude debt instruments referred to in paragraph 1(b) as cover pool assets and where the issuer or an entity closely linked to the issuer has issued such debt instruments NCBs may take all or some of the following measures to conduct ad hoc checks of compliance with paragraph 1(b).

4.   If the counterparty does not provide the self-certification and confirmation in accordance with paragraph 3 upon request from the NCB, the covered bond shall not be mobilised as collateral by that counterparty, in accordance with paragraph 1.’;

(27)

Article 141 is replaced by the following:

‘Article 141

Limits with respect to unsecured debt instruments issued by credit institutions and their closely linked entities

1.   A counterparty shall not submit or use as collateral unsecured debt instruments issued by a credit institution or by any other entity with which that credit institution has close links, to the extent that the value of such collateral issued by that credit institution or other entity with which it has close links taken together exceeds 2,5 % of the total value of the assets used as collateral by that counterparty after the applicable haircut. This threshold shall not apply in the following cases:

2.   If a close link is established or a merger takes place between two or more issuers of unsecured debt instruments, the threshold in paragraph 1 shall apply from six months after the date on which the close link is established or the merger becomes effective.

3.   For the purposes of this Article, ‘close links’ between an issuing entity and another entity has the same meaning as ‘close links’ between a counterparty and another entity, as referred to in Article 138.’;

(28)

Article 148 is amended as follows:

(29)

Article 150 is replaced by the following:

‘Article 150

Eligible links between SSSs

1.   In addition to the CCBM, counterparties may use eligible links for the cross-border transfer of marketable assets. The ECB shall publish the list of eligible links on its website.

2.   Assets held through an eligible link may be used for Eurosystem credit operations, as well as for any other purpose selected by the counterparty.

3.   The rules on the use of eligible links are set out in Annex VI.’;

(30)

Article 151 is replaced by the following:

‘Article 151

CCBM in combination with eligible links

1.   Counterparties may use eligible links in combination with the CCBM to mobilise eligible marketable assets on a cross-border basis.

2.   When using eligible links between SSSs in combination with the CCBM, counterparties shall hold the assets issued in the issuer SSS in an account with an investor SSS directly or via a custodian

3.   Assets mobilised under paragraph 2 may be issued in a non-euro area EEA SSS that the Eurosystem has assessed as compliant with the eligibility criteria laid down in Annex VIa, provided that there is an eligible link between the issuer SSS and the investor SSS.

4.   The rules on the use of the CCBM in combination with eligible links are set out in Annex VI.’;

(31)

in Article 152, paragraph 2 is replaced by the following:

‘2.   The CCBM (including the CCBM in combination with eligible links) may be used as a basis for the cross-border use of tri-party collateral management services. Cross-border use of tri-party collateral management services shall involve an NCB, where tri-party collateral management services are offered for cross-border Eurosystem use, acting as a correspondent for NCBs whose counterparties have requested to use such tri-party collateral management services on a cross-border basis for the purposes of Eurosystem credit operations.

In order to provide its tri-party collateral management services for cross-border use by the Eurosystem in accordance with the first subparagraph, the relevant TPA shall comply with the set of additional functional requirements laid down by the Eurosystem, as referred to in the ‘Correspondent central banking model (CCBM) – Procedures for Eurosystem counterparties’ (Section 2.1.3, second paragraph).’;

(32)

in Article 156, paragraph 4 is replaced by the following:

‘4.   If a counterparty fails to comply with an obligation referred to in Article 154(1)(c) on more than two occasions in a 12-month period and in respect of each failure:

the Eurosystem shall, on the occasion of the third failure to comply, suspend the counterparty from the first liquidity-providing open market operation within the reserve maintenance period following the notification of the suspension.

If subsequently the counterparty again fails to comply, it shall be suspended from the first liquidity-providing open market operation within the reserve maintenance period following notification of suspension until a 12-month period lapses without any further such failure on the part of the counterparty.

Each 12-month period shall be calculated from the date of the notification of a sanction for failure to comply with an obligation referred to in Article 154(1)(c). Second and third breaches committed within 12 months from that notification will be taken into account.’

(33)

Article 158 is amended as follows

(34)

in Article 159, paragraph 4 is replaced by the following:

‘4.   The Eurosystem may exclude the following assets from the list of eligible marketable assets:

(35)

in Article 166, paragraph 4a is replaced by the following:

‘4a.   Each NCB shall apply contractual or regulatory arrangements which ensure that, at all times, the home NCB is in a legal position to impose a financial penalty for a failure of a counterparty to reimburse or pay, in full or in part, any amount of the credit or of the repurchase price, or to deliver the purchased assets, at maturity or when otherwise due, in the event that no remedy is available to it pursuant to Article 166(2). The financial penalty shall be calculated in accordance with Annex VII, Section III, taking into account the amount of cash that the counterparty could not pay or reimburse, or the assets the counterparty could not deliver, and the number of calendar days during which the counterparty did not pay, reimburse or deliver.’;

(36)

a new Annex VIa is inserted and Annexes VII, VIII and IXa are amended in accordance with the Annex to this Guideline.