(1)

Guideline ECB/2004/13 of 1 July 2004 on the Eurosystem’s provision of reserve management services in euro to central banks and countries located outside the euro area and to international organisations (1) requires amendment to accommodate changes to the definition of ‘reserves’ and the removal of the threshold below which no remuneration is offered on overnight credit balances held as a cash/investment service. Guideline ECB/2004/13 has already been amended once and should therefore be recast in the interests of clarity and transparency.

(2)

Pursuant to Article 23 in conjunction with Article 43.4 of the Statute, the European Central Bank (ECB) and the national central banks of the Member States that have adopted the euro (hereinafter the ‘participating NCBs’) may establish relations with central banks in other countries and, where appropriate, with international organisations, and conduct all types of banking transactions in their relations with third countries and international organisations.

(3)

The Governing Council considers that the Eurosystem should act as a single system when providing Eurosystem reserve management services to such customers, irrespective of the Eurosystem member through which such services are provided. To this end, the Governing Council considers it necessary to adopt this Guideline to ensure, inter alia, that Eurosystem reserve management services are provided on a standardised basis under harmonised terms and conditions, that the ECB receives adequate information regarding these services, and that minimum common features required in contractual arrangements with customers are identified.

(4)

The Governing Council considers it necessary to confirm that all information, data and documents drafted by and/or exchanged between Eurosystem members in the context of Eurosystem reserve management services are of a confidential nature and are subject to Article 38 of the Statute.

(5)

In accordance with Article 12.1 and Article 14.3 of the Statute, ECB guidelines form an integral part of Community law,

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‘all types of banking transactions’ shall include the provision of Eurosystem reserve management services to central banks and countries located outside the euro area and to international organisations in connection with the management of the reserves of such central banks, countries and international organisations,

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‘authorised ECB personnel’ shall mean such persons at the ECB as shall be identified by the Executive Board, from time to time, as the authorised senders and recipients of the information to be provided within the framework of Eurosystem reserve management services,

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‘central banks’ shall include monetary authorities,

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‘customer’ shall mean any country (including any public authority or government agency), any central bank or monetary authority located outside the euro area, or any international organisation to which Eurosystem reserve management services are provided by a Eurosystem member,

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‘Eurosystem reserve management services’ shall mean the reserve management services listed in Article 2 that may be provided by Eurosystem members to customers and that allow customers to comprehensively manage their reserves through a single Eurosystem member,

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‘Eurosystem Service Provider’ (ESP) shall mean a Eurosystem member which undertakes to provide the complete set of Eurosystem reserve management services,

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‘Individual Service Provider’ (ISP) shall mean a Eurosystem member which does not undertake to provide the complete set of Eurosystem reserve management services,

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‘international organisation’ shall mean any organisation, other than Community institutions and bodies, established by or under the authority of an international treaty,

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‘reserves’ shall mean the customer’s eligible euro-denominated assets, i.e. cash and all securities that are eligible as ‘tier one assets’ of the Eurosystem eligible assets database, as published and updated daily on the ECB’s website, with the exception of: (i) both the securities falling under ‘issuer group 3’ and, for the remaining issuer groups, the securities falling under ‘liquidity category IV’; (ii) assets exclusively held for the purpose of meeting the pension and related obligations of the customer vis-à-vis its former or existing staff; (iii) dedicated accounts opened with a Eurosystem member by a customer for public debt rescheduling purposes within the framework of international agreements; and (iv) such other categories of euro-denominated assets as decided from time to time by the Governing Council.

1.

Custody (safe keeping) accounts for the reserves;

2.

Custodian (safe keeping) services:

3.

Settlement services:

4.

Cash/investment services:

(a)

state that the counterparty of the customer is the Eurosystem member with whom that customer has concluded an arrangement for the provision of Eurosystem reserve management services or any part thereof, and that such arrangement does not in itself create customer rights or entitlements vis-à-vis any other Eurosystem members. This provision does not prevent a customer from having an arrangement with several Eurosystem members;

(b)

refer to the links that may be used for the settlement of securities held by customers’ counterparties and the relevant risks of using links not eligible for monetary policy operations;

(c)

refer to the fact that certain transactions within the framework of Eurosystem reserve management services shall be carried out on a best effort basis;

(d)

refer to the fact that the Eurosystem member may make suggestions to customers as to the timing and execution of a transaction to avoid conflicts with the Eurosystem’s monetary and exchange rate policy, and that such member shall not be liable for any consequences that such suggestions may have for the customer;

(e)

refer to the fact that the fees that Eurosystem members charge to their customers for the provision of Eurosystem reserve management services are subject to reviews by the Eurosystem and that the customers shall, in accordance with applicable law, be bound by the fee revisions that might result from such reviews.