ECB Decision on safeguards in relation to access by CCPs to Eurosystem overnight credit in TARGET

Decision 2025/1734 of the European Central Bank (ECB) of 31 July on safeguards in relation to access by central counterparties (CCPs) to Eurosystem overnight credit in TARGET, has been published in the Official Journal. Under Guideline 2022/912, national central banks of Member States whose currency is the euro may provide overnight credit through a dedicated crisis facility to CCPs established in the euro area and which meet certain requirements. This Decision specifies i) the requirements that CCPs must meet in relation to financial soundness and liquidity risk management; ii) the assessments of compliance which the Eurosystem central banks are to carry out; iii) the Governing Council's powers to decide on discretionary measures in cases where an eligible CCP does not comply with the requirements relating to the safeguards on financial soundness and sound liquidity risk management; and iv) the penalties applicable for cases where a CCP's access to the CCP credit facility has been limited and the CCP exceeds the restricted level of access, or resorts to the CCP credit facility in breach of relevant requirements relating to liquidity risk controls. The Decision enters into force on 2 September and applies from 6 October, aligned with the date of application of the amendments to Guideline 2022/912 relating to the CCP credit facility.

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