Admission criteria and default rules
In order to be eligible to participate in the EURO1 system, an entity has to fulfil certain legal, financial and operational criteria.
An entity has to:
- be authorised to conduct banking business
- have its registered office in a member state of the EU or in an OECD country
- participate in the EURO1 System from its registered address or a branch located in the EU
- provide a capacity opinion
- not be a member of the same group as an existing EURO1 Participant (for Pre-fund Participants the requirement is to be a member of the same bank group as a EURO1 Participant)
In addition, the laws of all the jurisdictions from where a participating bank accesses the system must recognise the Single Obligation Structure, which forms the legal basis of the system.
Financial criteria (applying upon admission)
A bank has to:
- have own funds of at least EUR 1.25 billion
- have a short-term credit rating of at least P2 (Moody’s) or A2 (S&P), or equivalent
A bank has to:
- have direct access to T2 RTGS
- have adequate technical and operational facilities, including back-up facilities, and staffing for the purposes of participation in the system
Please note that there will be a freeze period from Saturday, 19 December 2022 until Sunday, 6 January 2023.
Monthly change dates are agreed for changes to EURO1 participation. This includes the connection of new participants to the system and the addition of sub-participants as sub-addresses.
- 8 January 2024
- 5 February 2024
- 4 March 2024
- 8 April 2024
- 6 May 2024
- 3 June 2024
- 8 July 2024
- 7 August 2024
- 9 September 2024
- 7 October 2024
- 4 November 2024
- 9 December 2024
EURO1 is designed to ensure completion of settlement in the case of a default by any number of participants, based on the Liquidity Pool and Loss Sharing arrangements.
Exclusion, suspension and withdrawal from the EURO1 System
A participant can be prevented definitively or temporarily by the System Operator from continuing to participate in the system if certain events occur. It can also decide voluntarily to leave the system.
Certain events occur, including financial or operational defaults. Such defaults are addressed in first instance through the activation of incident handling and, as applicable, crisis management arrangements.
The occurrence of a suspension or exclusion event and the consequences thereof for the suspended / excluded participant and for the other participants are determined solely in accordance with the rules governing the system. The system’s rules are proprietary and confidential, and are available to all participants, to prospective participants that have applied to become a participant, and to relevant authorities including in particular the European Central Bank as the lead overseer of EURO1.
Failure to comply with the operational and legal criteria for participation and failure to pay or replenish when due settlement related obligations constitute suspension events.
Where relevant, an inquiry notice is sent to the participant to confirm the occurrence of a suspension event.
Participants must remedy the cause of a suspension event. An appeals procedure is in place in case the System Operator denies to terminate a suspension.
Events that may give rise to exclusion comprise in particular:
- confirmed insolvency events
- loss or authorisation to conduct banking business
- unremedied suspension
Consequences of suspension/exclusion
Subject to the specific provisions of the EURO1 System Documentation, in the event of suspension or exclusion, no payment messages will be processed in relation to a suspended or excluded participant as from the moment of its suspension or exclusion (and, in the case of suspension, as long as the suspension continues).
Withdrawal from the system
A participant in EURO1 may voluntarily withdraw from the system upon at least 30 days’ notice.
For information on the EURO1 pricing, please click here.