EURO1 pricing

The pricing policy for EURO1 has been agreed by the shareholders collectively, and consists in (i) recovering all costs in relation to the processing service provided by SWIFT and (ii) covering the costs in relation to settlement as well as the operational, administrative and depreciation costs incurred at the level of EBA CLEARING in relation to the service management and development of EURO1.

The pricing objectives of EURO1 include in particular the objective to minimise costs of the users in relation to the processing of single payments, coupled with a cost recovery approach at the level of EBA CLEARING acting as ‘business administrator’.

EBA CLEARING does not have a discount policy.

Overview of fees

1) Entrance fee

A one-off fee for connecting to the system is payable upon connection to the system in an amount as determined each year, taking into account past investments. Decisions on discounts apply in the same manner to any new participant that would join.

2) Annual fixed fees

The annual operating charge of the processing agent (SWIFT) and the operating costs of EBA CLEARING are in part shared equally among the EURO1 Participants in accordance with a special distribution key.

3) Transaction fees

The remainder of the costs of the system are covered by transaction fees. Transaction fees are calculated based on the number of payment messages sent in accordance with the incremental scale below which aims to provide an incentive for the participants to use the system:

Option 1: Variable transaction fees (default option)

Daily average volume tier – Based on the daily average number of payments

 

from 1 to 800 0.32
from 801 to 1,750 0.23
from 1,751 to 4,000 0.16
from 4,001 to 7,00 0.08
from 7,001 0.04

Option 2: Annual fixed transaction fee option

Participants may opt for an annual fixed transaction fee. The amount of the annual fixed transaction fee shall apply for the transaction volume sent during a calendar year, regardless of and without a limitation on the actual volumes of transactions.

EURO1 is based on SWIFT FIN payments messaging and the use of SWIFTNet Browse, InterAct and FileAct for the operational management of the system. Pricing for the use of the SWIFT network for sending payment messages is a matter of the bilateral contract of each user with the network provider.

In addition to the above-mentioned fees, each participant contributes in equal shares to a liquidity pool by maintaining a deposit denominated in EUR with the European Central Bank (ECB). The total amount of the liquidity pool is set at EUR 1 bn. The Liquidity Pool deposit bears interest based on the ECB’s deposit facility rate. The maintenance of a liquidity pool is mandatory for compliance with the requirements on coverage of liquidity (and credit) risk as per the oversight requirements for systemically important payment systems.

All banks participating in EURO1 are also the shareholders of EBA CLEARING. Acquisition of a share is at the price of EUR 1,000.

Modest charges apply for administration of banks’ participation in the service.