2004年-ECB欧洲央行_The_use_of_Central_bank_money_for_settling_securities_transactions_23页_654kb

Summary of "The Use of Central Bank Money for Settling Securities Transactions" (May 2004)

Core Content

This document provides an overview of the current models and practices for using central bank money to settle the cash leg of securities transactions within the European Union (EU) in 2003. It outlines the different ways in which securities settlement systems (SSS) and payment systems (PS) interact to ensure the settlement of trades using central bank money, focusing on technical and operational aspects.

Main Models

There are three main models for cash leg settlement using central bank money:

1. Interfaced Model

• Account Location: Settlement accounts are in the SSS environment, but the final settlement occurs in the central bank's books.
• Operation: SSS participants use their RTGS accounts, and the SSS interacts with the RTGS system to send cash settlement instructions.
• Variants:
  • In some countries (e.g., Belgium), the SSS may interact with a separate system that is not part of the RTGS environment.
  • In other cases (e.g., Italy), the SSS uses liquidity bridges to ensure sufficient liquidity is available for settlement, with balances moved back to NCB accounts at the end of the cycle.

2. Integrated Model

• Account Location: Settlement accounts are held at the SSS, which operates directly on behalf of the central bank.
• Operation: The SSS is responsible for generating payment instructions and making entries in the central bank's accounts, effectively outsourcing the processing to the SSS.
• Examples: France and Sweden use this model.

3. Memorandum/Pre-Funded Model

• Account Location: Participants use their own cash settlement accounts at the SSS.
• Operation:
  • The SSS may interact with NCB accounts through liquidity bridges at the start, during, and end of the cycle.
  • In some cases (e.g., Finland), the SSS is not a risk-taking entity and the settlement is conducted through pre-funded transfers from participants' RTGS accounts.
• Variants:
  • Liquidity Bridge Model: Special facilities are used to ensure liquidity is available in the SSS environment for settlement.
  • Legal Finality Model: Finality is achieved in the SSS, with the central bank ensuring the necessary liquidity is reserved in advance.
  • Autonomous Central Bank Model: The SSS has an RTGS account, and settlement is conducted internally with no direct interaction with the central bank's books.

Key Aspects of Models

1. Location of Cash Accounts:

   • In the interfaced model, cash accounts are in the SSS environment but final settlement is in the central bank's books.
   • In the integrated model, the SSS operates directly on the central bank's accounts.
   • In the memorandum/pre-funded model, the SSS may use internal sub-accounting or interact with NCB accounts through liquidity bridges.

2. Who Generates Payment Instructions:

   • The SSS typically generates the payment instructions on behalf of its participants.
   • In some cases, participants may need to pre-fund their accounts with central bank money before settlement.

3. How Interaction Occurs:

   • Gross Settlement: Each transaction is settled individually, with continuous interaction between SSS and PS.
   • Net Settlement: Settlement occurs in batches at the end of each netting cycle.
   • Multi-batch Gross Settlement: Multiple batches are processed throughout the day, with interaction occurring frequently and almost continuously.

4. Timing of Interaction:

   • Daylight Processing: Settlement occurs during normal business hours.
   • Night-Time/Pre-Opening Processing: Some countries (e.g., Germany, Italy, Spain, Netherlands) use night-time processing to settle the next value date before the market opens.
   • Pre-Opening: The next value date's opening balance is determined after the previous day's housekeeping procedures, allowing for the release of previously blocked balances.

5. Composition of Available Balance:

   • The available balance for cash settlement includes:
     • The current account balance (either RTGS or NCB account).
     • Intraday credit, which is based on eligible collateral.
   • In some systems, intraday credit is calculated using the securities that the SSS is delivering to the buyer in the same settlement cycle.

Key Information

• The document highlights that the use of central bank money in settlement ensures legal finality and reduces operational and liquidity risks.
• It is based on responses from national central banks (NCBs) of the European System of Central Banks (ESCB) to an ad hoc questionnaire in 2003.
• The European Central Securities Depositories Association (ECSDA) also provided comments on the survey results.
• The ECB considers this information useful for market participants and service providers in payment and settlement systems.

Annex

• Annex 1: Includes replies from NCBs of the ESCB, detailing their specific practices and models.
• These replies are used to summarize the main characteristics of the different national solutions, though not all details are included.

Conclusion

The document provides a comprehensive analysis of the various models used for cash leg settlement in securities transactions, emphasizing the role of central bank money in ensuring legal finality and operational efficiency. It outlines the different approaches to account location, instruction generation, interaction frequency, timing, and available balance composition, offering insights into the evolving landscape of securities and payment systems in the EU.