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2.12.2011 Official
Journal
of
the
European
Union L
319/117
DECISION OF THE EUROPEAN CENTRAL BANK
of 16 November 2011
establishing detailed rules and procedures for implementing the eligibility criteria for central
securities depositories to access TARGET2-Securities services
(ECB/2011/20)
(2011/789/EU)
THE GOVERNING COUNCIL OF THE EUROPEAN CENTRAL BANK,
(2) ‘central bank (CB)’ means the European Central Bank, the
national central banks (NCBs) of the Member States whose
currency is the euro, the NCBs of the Member States
Having regard to the Statute of the European System of Central
whose currency is not the euro (hereinafter ‘non-euro
Banks and of the European Central Bank, and in particular
area NCBs’), any European Economic Area (EEA) central
Articles 3.1 and 12.1 and Articles 17, 18 and 22 thereof,
bank or relevant competent authority (hereinafter ‘EEA
central bank’) and any central bank or relevant
competent authority of a country outside the EEA (here
Having regard to Directive 98/26/EC of the European
inafter ‘other central bank’), where the currency of such a
Parliament and of the Council of 19 May 1998 on settlement
non-euro area NCB, EEA or other central bank is
finality in payment and securities settlement systems (
considered eligible in accordance with Article 18 of

1 ), and in
particular Article 10 thereof,
Guideline ECB/2010/2;
Having regard to Guideline ECB/2010/2 of 21 April 2010 on
TARGET2-Securities ( 2 ), and in particular Article 4(2)(d) and
(3) ‘CSD access criterion 1’ means the criterion laid down in
Article 15 thereof,
Article 15(1)(a) of Guideline ECB/2010/2, i.e. that CSDs
are eligible for access to T2S services provided that they
have been notified to the European Securities and Markets
Having regard to Decision ECB/2009/6 of 19 March 2009 on
Authority pursuant to Article 10 of Directive 98/26/EC or,
the establishment of the TARGET2-Securities Programme
in the case of a CSD from a non-EEA country, they
Board ( 3 ),
operate under a legal and regulatory framework that is
equivalent to that in force in the Union;
Whereas:
(4) ‘CSD access criterion 2’ means the criterion laid down in
(1) Article
15
of
Guideline
ECB/2010/2
lays
down
the
eligi
Article 15(1)(b) of Guideline ECB/2010/2, i.e. that CSDs
bility criteria for a Central Security Depository (CSD) to
are eligible for access to T2S services provided that they
access TARGET2-Securities (T2S) services.
have been positively assessed by the competent authorities
against the European System of Central Banks/Committee
of European Securities Regulators Recommendations for
(2) It
is
necessary
to
establish
the
application
procedure
for
a
Securities Settlement Systems (hereinafter the ‘ESCB/CESR
CSD to access T2S services and the procedure for a CSD
recommendations’) ( 4 );
to request derogation from CSD access criterion 5,
HAS ADOPTED THIS DECISION:
(5) ‘CSD access criterion 3’ means the criterion laid down in
Article 15(1)(c) of Guideline ECB/2010/2, i.e. that CSDs
Article 1
are eligible for access to T2S services provided that they
make each security/International Securities Identification
Definitions
Number for which they are an issuer CSD, or technical
issuer CSD, available to other CSDs in T2S upon request;
For the purposes of this Decision:
(1) ‘assessment report’ means written documentation
containing: (a) a report drawn up by the relevant
(6) ‘CSD access criterion 4’ means the criterion laid down in
competent authorities assessing a CSD’s compliance with
Article 15(1)(d) of Guideline ECB/2010/2, i.e. that CSDs
CSD access criterion 2; and (b) a CSD self-assessment of its
are eligible for access to T2S services provided that they
compliance with CSD access criteria 1, 3, 4 and 5;
commit to offer to other CSDs in T2S basic custody
service on a non-discriminatory basis;
( 1 ) OJ L 166, 11.6.1998, p. 45.
( 2 ) OJ L 118, 12.5.2010, p. 65.
( 4 ) Available on the European Securities and Markets Authority’s
( 3 ) OJ L 102, 22.4.2009, p. 12.
website at: www.esma.europa.eu

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L 319/118
EN
Official Journal of the European Union
2.12.2011
(7) ‘CSD access criterion 5’ means the criterion laid down in
2. The
assessment
report
shall
provide
evidence
that
the
CSD
Article 15(1)(e) of Guideline ECB/2010/2, i.e. that CSDs
complies with the five CSD access criteria at the time of its
are eligible for access to T2S services provided that they
migration to T2S, and state the degree of implementation of
commit towards other CSDs in T2S to carry out their
each CSD access criterion according to the following categories:
central bank money settlement in T2S if the currency is
compliant, partly compliant and not applicable, and shall set
available in T2S;
out the CSD’s reasons, explanations and relevant evidence.
(8) ‘relevant competent authorities’ means the CBs and the
regulators with oversight and/or supervisory competence
3. The
T2S
Programme
Board
shall
submit
a
proposal
to
the
over a specific CSD and responsible for assessing CSDs
Governing Council, based on the abovementioned documen
against applicable recognised standards;
tation, on a CSD’s application to access T2S services. To
prepare its proposal, the T2S Programme Board may request
clarifications from or submit questions to the applying CSD.
(9) ‘directly connected party’ means a T2S Party with a
technical facility allowing it to access T2S and use its
securities settlement services without the need for a CSD
4. Following submission of the proposal by the T2S
to act as a technical interface;
Programme Board, the Governing Council shall make a
decision on a CSD’s application and communicate it in
writing to that CSD no later than 2 months following: (a) the
(10) ‘T2S Party’ means a legal entity or, in some markets, an
date of receipt of the application; or (b) the date of receipt of
individual, that has a contractual relationship with a CSD
the reply to any request for clarifications or submission of
in T2S for the processing of its settlement-related activities
questions by the T2S Programme Board under paragraph 3.
in T2S, and does not necessarily hold a securities account
Where the Governing Council rejects an application, it shall
with the CSD;
give reasons for doing so.
(11) ‘T2S Programme Board’ means the Eurosystem
Article 4
management body established pursuant to Decision
ECB/2009/6, as defined in Article 2 of Guideline
Procedure for obtaining a derogation from CSD access
ECB/2010/2, or its successor;
criterion 5
1. A CSD may submit a request for a derogation from CSD
access criterion 5 based on its specific operational or technical
(12) ‘T2S Advisory Group (AG)’ means the forum defined in
situation.
Article 7 of Guideline ECB/2010/2;
(13) ‘Currency Participation Agreement (CPA)’ means an
2. For
a
derogation
request
to
be
assessed,
the
CSD
shall
agreement to be entered into by the Eurosystem and a
submit a request to the T2S Programme Board and provide
non-euro area NCB, or an authority responsible for a
evidence of the following:
currency other than the euro, for the purpose of settling
securities transaction in central bank money in currencies
other than the euro.
(a) the derogation is for a very limited amount of settlement
volume as a proportion of the total average daily delivery-
versus-payment instructions received over a month at the
Article 2
CSD, and the cost of settling these operations in T2S would
Subject matter and scope
be excessive for the CSD;
1. The
five
criteria
determining
the
eligibility
of
CSDs
to
access T2S services laid down in Article 15 of Guideline
ECB/2010/2 (hereinafter the ‘five CSD access criteria’) shall be
(b) the CSD has set technical and operational safeguards
implemented in accordance with the procedures laid down in
ensuring that the derogation will remain within the
Articles 3 to 5 of this Decision and the rules in the Annex.
threshold set out in point (a);
2. This
Decision
shall
not
apply
to
directly
connected
parties (c) the CSD has made every effort to meet CSD access
having a legal relationship with the CSDs.
criterion 5.
Article 3
3. Following
receipt
of
such
request
for
a
derogation:
Application procedure
1. To
apply
for
T2S
services,
a
CSD
shall
submit:
(a)
an
application to the Governing Council; and (b) at the time of
(a) the T2S Programme Board shall submit the CSD’s request
its migration to T2S, an assessment report.
and its pre-assessment to the T2S Advisory Group;

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EN
2.12.2011 Official
Journal
of
the
European
Union L
319/119
(b) the T2S Advisory Group shall provide the T2S Programme
Programme Board for a temporary derogation from CSD
Board with advice on the request without delay and in due
access criterion 5, and may temporarily carry out settlement
time for it to be considered;
by other means. The Governing Council shall issue a reasoned
decision on such request taking into account the relevant CB’s
opinion on the situation warranting the temporary derogation
from CSD access criterion 5. The relevant CB shall provide the
(c) following receipt of advice from the T2S Advisory Group,
T2S Programme Board with a report, at least on a monthly
the T2S Programme Board shall prepare a final assessment
basis, on its evaluation of the situation.
and submit it, together with the entire set of documents, to
the Governing Council;
Article 5
(d) the Governing Council shall issue a reasoned decision on
Ongoing compliance with the five CSD access criteria
the request for a derogation;
1. A
CSD
with
access
to
T2S
services
shall
comply,
after
it
has migrated to T2S, with the five CSD access criteria on an
ongoing basis and shall:
(e) the T2S Programme Board shall inform the CSD and the
T2S Advisory Group in writing of the Governing Council’s
reasoned decision.
(a) ensure, in particular, through a reliable self-assessment
conducted each year and supported by relevant documen
tation that it continues to comply with CSD access criteria
4. A CSD designated by a CB that has signed a CPA and has
1, 3, 4 and 5. The self-assessment shall be accompanied by
opted for settlement of its monetary policy transactions in
the most recent assessment by the relevant competent
central bank money outside T2S, shall submit a request for a
authorities of the CSD’s compliance with criterion 2;
derogation in order to be able to settle such monetary policy
transactions in central bank money outside T2S. In such case, a
derogation shall be granted provided that: (a) the Eurosystem
has received all relevant information on the technical func
tioning of such settlement; and (b) such settlement does not
(b) promptly provide the T2S Programme Board with the most
require changes to or negatively affect T2S functionality. The
recent regular or ad hoc assessment by the relevant
designating CB should be invited to provide its opinion on such
competent authorities of its compliance with CSD access
request for a derogation.
criterion 2;
5. A
CSD
with
a
derogation
shall
provide
a
monthly
report (c) request a new assessment by the relevant competent
to the T2S Programme Board proving that it continues to
authorities of its compliance with CSD access criterion 2
comply with the derogation, including the agreed threshold
in the event of material changes to the CSD’s system;
set out in paragraph 2(a). A CSD with a derogation pursuant
to paragraph 4 shall provide a monthly report to the T2S
Programme Board on the situation.
(d) notify the T2S Programme Board where a relevant
competent authority assessment or a self-assessment has
6. Where
a
CSD
with
a
derogation
consistently
exceeds
the
established non-compliance with any of the five CSD
agreed threshold set out in paragraph 2(a) within a 6-month
access criteria;
period, the Governing Council shall withdraw the derogation
due to non-compliance with CSD access criterion 5 and the
T2S Programme Board shall notify the CSD accordingly.
(e) following a request from the T2S Programme Board,
provide an assessment report demonstrating that the CSD
7. Following the withdrawal of a derogation, a CSD may
still complies with the five CSD access criteria.
submit a new request for a derogation in accordance with the
procedure laid down in this Article.
2. With the exception of CSD access criterion 2, the T2S
Programme Board may carry out its own evaluation and
8. Where
there
is
a
crisis
situation
that
could
impact
the monitor compliance with the five CSD access criteria or
financial stability of a country or the relevant CB’s task to
request information from a CSD. Where the T2S Programme
safeguard the integrity of its currency and has led the CB of
Board decides that a CSD does not comply with one of the five
the country concerned to move to a contingency type
CSD access criteria, it shall initiate the procedure laid down in
settlement as part of its crisis management plan, a CSD
the contracts with the CSDs pursuant to Article 16 of Guideline
designated by that CB shall submit a request to the T2S
ECB/2010/2.

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L 319/120
EN
Official Journal of the European Union
2.12.2011
Article 6
Entry into force
This Decision shall enter into force on the day following its publication in the Official Journal of the European
Union.
Done at Frankfurt am Main, 16 November 2011.
The President of the ECB
Mario DRAGHI

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EN
2.12.2011 Official
Journal
of
the
European
Union L
319/121
ANNEX
DETAILED IMPLEMENTATION RULES FOR THE FIVE CENTRAL SECURITIES DEPOSITARY ACCESS
CRITERIA
For the purposes of this Annex:
— ‘basic custody services’ means the holding and administration of securities and other financial instruments owned by a
third party by an entity entrusted with such tasks. Such services include the safekeeping of securities, the distribution
of interest and dividends on the securities in safekeeping and the processing of corporate actions on such securities,
— ‘investor CSD’ means, in the context of central securities depositary (CSD) links, a CSD that opens an account in
another CSD (the issuer CSD) to enable the cross-CSD settlement of securities transactions,
— ‘issuer CSD’ means the CSD in which the securities have been issued and distributed on behalf of the issuer. The issuer
CSD is responsible for processing corporate actions in the name of the issuer. The issuer CSD maintains accounts in
its books in the name of investor CSDs for the transfer of securities to the investor CSDs,
— ‘technical issuer CSD’ means an investor CSD that holds securities with an issuer CSD not participating in T2S and is
considered an issuer CSD for the functioning of T2S with respect to such securities,
— ‘investment fund shares’ means portions of ownership of an investment fund’s net assets that investors receive in
return for their investments of capital.
I. Implementation
details
for
CSD
access
criterion
1
In order to receive a positive assessment against this criterion:
(a) for a CSD located in a European Economic Area (EEA) country, the CSD must be included on the list of designated
systems maintained in accordance with Article 10 of Directive 98/26/EC; and
(b) for a CSD located in a non-EEA country, a legal opinion, as updated from time to time when there are material
changes that might have an impact on the legal opinion or when requested by the T2S Programme Board, from a
firm approved by the T2S Programme Board must be submitted, confirming that the CSD operates under a legal and
regulatory framework equivalent to the relevant one in force in the Union.
II. Implementation details for CSD access criterion 2
Where a CSD does not fully comply with all ESCB/CESR recommendations, the respective CSD will inform the T2S
Programme Board of the relevant details and provide explanations and evidence regarding those ECSB/CESR recom
mendations with which it does not comply. The CSD will also provide the T2S Programme Board with the conclusions
by the relevant competent authorities in the assessment report. The assessment conclusions will be processed in
accordance with the relevant application procedures for access to T2S services and ongoing compliance with the five
CSD access criteria. Where a CSD with access to T2S services no longer complies with one of the five CSD access criteria,
the T2S Programme Board will initiate the procedure provided for in the contracts with the CSDs.
A CSD will fulfil this CSD access criterion where:
(a) for a CSD located in an EEA country, the relevant competent authorities have given that CSD a positive assessment
under the ESCB/CESR recommendations; and

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L 319/122
EN
Official Journal of the European Union
2.12.2011
(b) for a CSD located in a non-EEA country, the relevant competent authorities have given that CSD a positive
assessment under the ESCB/CESR recommendations or equivalent standards, such as the proprietary standards of a
relevant competent authority or the CPSS/IOSCO Recommendations ( 1 ). In the latter case, the T2S Programme Board
or the Governing Council respectively must be provided with evidence that the CSD has been assessed against
standards of a similar level and nature.
Where the relevant competent authorities’ assessment contains confidential information, the CSD must provide a general
summary or the assessment conclusion to show its level of compliance.
III. Implementation details for CSD access criterion 3
A CSD with access to T2S services is not required to hold all its accounts and balances in T2S for every security/ISIN it
issues or for which it acts as technical issuer CSD. However, it must make a security/ISIN available at no additional cost,
without delay, and with a contract that does not impose unreasonable conditions on requests by the users of the investor
CSD in T2S. Some investment fund shares may not be automatically available to the investor CSD opening an account
with the issuer CSD due to legal restrictions on cross-border distributions applicable to the investment fund share issuers.
An issuer CSD is required to comply with the national regulatory framework, but may not pass on costs resulting from
the application of this framework to other CSDs in T2S. This requirement ensures that the costs of complying with the
national regulatory framework stay local and that there is reciprocity among CSDs in T2S. In addition, this requirement
promotes a harmonised settlement processes in T2S to the extent possible.
An issuer CSD is required to comply with the national regulatory framework, but it must support an investor CSD
requesting access and it may not apply an additional settlement cost. Any delay caused by compliance with the national
regulatory framework must apply equally to all parties.
The investor CSD may request a security/ISIN that is not yet available in T2S from the respective issuer CSD or technical
issuer CSD. Upon receiving such a request, the issuer CSD or technical issuer CSD enters all the security’s reference data
in T2S and makes them accessible within the time-frame defined in the Manual of Operational Procedures to be provided
by the Eurosystem to the CSDs and the CBs.
Provided the investor CSD has signed the required contractual terms, the issuer CSD opens, without undue delay, at least
one securities account for a specific security/ISIN for the investor CSD. Refusal by an issuer CSD to open a securities
account and provide the investor CSD with access to the issuer CSD’s securities constitutes non-compliance with CSD
access criterion 3.
The investor CSD must report to the T2S Programme Board every case of non-compliance with CSD access criterion 3 by
an issuer CSD. Depending on the nature and occurrence of non-compliance, the T2S Programme Board will determine if
the issuer CSD shows a consistent failure to comply, in which case the procedure provided for in the contracts with the
CSDs, pursuant to Article 16 of Guideline ECB/2010/2, will apply.
IV. Implementation details for CSD access criterion 4
This CSD access criterion conforms to the Access and Interoperability Guideline ( 2 ) which states that investor CSDs shall
have access to issuer CSD services based on the same terms and conditions as provided to any other standard participant
of the issuer CSD.
In order for an investor CSD to provide settlement services for securities issued by an issuer CSD, the investor CSD must
also provide its participants with basic custody services in relation to those securities. T2S offers core cash and securities
settlement in central bank money, where the basic custody services are provided outside T2S.
( 1 ) Committee on Payment and Settlement Systems (CPSS)/Technical Committee of the International Organization of Securities
Commissions (IOSCO) Recommendations for securities settlement systems, available on the Bank for International Settlements
website at: www.bis.org
( 2 ) The Access and Interoperability Guideline of 28 June 2007, defining the principles and conditions for access and interoperability in line
with the Code of Conduct, available on the European Commission’s website at: http://ec.europa.eu

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EN
2.12.2011 Official
Journal
of
the
European
Union L
319/123
The issuer CSD must comply with the T2S Corporate Actions Subgroup Standards ( 1 ) and all relevant T2S standards or
market practices.
The investor CSD must be treated as any other issuer CSD client. An issuer CSD may not impose technical barriers or
offer preferential conditions to investor CSDs to access basic custody services.
V. Implementation details for CSD access criterion 5
A level playing field must be maintained between direct and indirect holding markets in implementing CSD access
criterion 5. A CSD from a direct holding market may in principle migrate to T2S either by integrating all its securities
accounts into T2S or by using the layered model with technical participant accounts in T2S and the end-investor accounts
remaining on the local CSD platform. CSD access criterion 5 is fully met where a direct holding market chooses to fully
integrate and maintain all its securities accounts in T2S. However, where a direct holding market chooses to migrate to
T2S with the layered model, the T2S Programme Board’s evaluation of the associated processes inside and outside T2S,
taking into account the essence of CSD access criterion 5, must indicate whether the market needs to request a derogation
from CSD access criterion 5.
( 1 ) Available on the European Central Bank’s website at: www.ecb.europa.eu

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