Open market operation an operation executed on the initiative of the central bank in the financial markets involving one of the following transactions ( 1 ) buying or selling assets outright ( spot or forward ) ( 2 ) buying or selling assets under a repurchase agreement

RTGS ( real time gross settlement ) system a settlement system in which processing and settlement take place on an order by order basis ( without netting ) in real time ( continuously ) .

Payments processed by selected interbank funds transfer systems Tables 8 and 9 comprise data on transactions submitted to and processed in an interbank funds transfer system .

Solvency risk the risk of loss owing to the failure ( bankruptcy ) of an issuer of a financial asset or to the insolvency of the counterparty . Standard tender a tender procedure used by the Eurosystem in its regular open market operations .

Strip ( separate trading of interest and principal ) a zero coupon bond created in order to trade separately the claims on particular cash flows of a security and the principal of the same instrument .

The Eurosystem offers two overnight standing facilities the marginal lending facility and the deposit facility . Start date the date on which the first leg of a monetary policy operation is settled .

Standard tender a tender procedure used by the Eurosystem in its regular open market operations . Standard tenders are carried out within a time frame of 24 hours .

Solvency risk the risk of loss owing to the failure ( bankruptcy ) of an issuer of a financial asset or to the insolvency of the counterparty . Standard tender a tender procedure used by the Eurosystem in its regular open market operations .

Settlement agent an institution that manages the settlement process ( e.g. the determination of settlement positions , monitoring the exchange of payments , etc .) for transfer systems or other arrangements that require settlement . Settlement risk a general term used to designate the risk that settlement in a transfer system will not take place as expected .

Multi purpose prepaid card a stored value card which can be used for a wide range of purposes and which has the potential to be used on a national or international scale , but which may sometimes be restricted to a certain area . A reloadable multi purpose prepaid card is also known as an electronic purse ( see also electronic money ) .

Tables 8 and 9 comprise data on transactions submitted to and processed in an interbank funds transfer system .

Section 5 Selected interbank funds transfer systems

TARGET ( Trans European Automated Real time Gross settlement Express Transfer system ) the real time gross settlement ( RTGS ) system for the euro .

Reserve ratio the ratio defined by the central bank for each category of eligible balance sheet item included in the reserve base .

1 . Participation in selected interbank funds transfer systems

Payments processed by selected interbank funds transfer systems

The Eurosystem offers two overnight standing facilities the marginal lending facility and the deposit facility .

A retail payment system is a funds transfer system which handles a large volume of payments of relatively low value in such

Section 5 Selected interbank funds transfer systems Interbank funds transfer systems ( IFTSs ) are included , whether managed by a central bank or a private operator .

Net settlement system ( NSS ) a funds transfer system , the settlement operations of which are completed on a bilateral or multilateral net basis . Quick tender a tender procedure to be used by the ESCB for fine tuning operations when it is deemed desirable to have a rapid impact on the liquidity situation in the market .

Where necessary to meet settlement deadlines , counterparties may be able to pre deposit assets with correspondent central banks for the account of their home central bank using the CCBM procedures .

Official Journal of the European Union TABLE 7 Participation in selected interbank funds transfer systems ( ) Items Non TARGET payment system Refer to list of payment systems

The mass transfer dominates the evolution of the system.

That development was fostered by the smooth functioning of the TARGET system for the transfer of large value funds throughout the euro area and the other EU countries .

Quick tenders are executed within a time frame of one hour and are restricted to a limited set of counterparties .

The effects of SEPA have so far been most visible at the infrastructures level , i.e. the entities that offer an inter bank funds transfer system .

Settlement risk a general term used to designate both credit and liquidity risk in a funds transfer system , i.e. the risk that a party will fail to meet one or more obligations to its counterparties or to a settlement agent or settlement institution .

Projects will introduce methodologies and organisational decisions , faciUtating to collate and convert the existing credit transfer system into the European credit transfer system (ECTS).

ECB Annual Report 2003 121

Settlement date the date on which a transaction is settled . The settlement might take place on the same day as the trade ( same day settlement ) or can occur one or several days after the trade ( the settlement date is specified as the trade date ( T ) the settlement lag ) .

Payments processed by selected interbank funds transfer systems number of transactions ( ) Items Non TARGET payment system ( Refer to list of payment systems ) TARGET component LVPS ( 1 ) ( reported separately for each LVPS 1 , 2 ) Retail system ( Reported separately for each retail payment system 1 , 2 , 3 , 4 )

TABLE 9 Payments processed by selected interbank funds transfer systems value of transactions ( ) Items Non TARGET payment system ( Refer to list of payment systems ) TARGET component LVPS ( Reported separately for each LVPS 1 , 2 ) Retail system ( Reported separately for each retail payment system 1 , 2 , 3 , 4 )

Factors affecting throughput The throughput of a communication system will be limited by a huge number of factors.

Settlement date the date on which a transaction is settled . The settlement might take place on the same day as the trade ( same day settlement ) or can occur one or several days after the trade ( the settlement date is specified as the trade date ( T ) the settlement lag ) .

Settlement is the transfer of funds between the payer and the payee ( and between the payer 's bank and the payee 's bank ) .

Internal rate of return shall mean a rate at which the accounting value of a security is equal to the present value of the future cash flow .

Structural operation an open market operation executed by the Eurosystem mainly in order to adjust the structural liquidity position of the financial sector vis à vis the Eurosystem .

Solvency risk the risk of loss owing to the failure ( bankruptcy ) of an issuer of a financial asset or to the insolvency of the counterparty .

ECB The implementation of monetary policy in the euro area September 2006 ANNEX 2 Standardised deduction the fixed percentage of the amount outstanding of debt securities with an agreed maturity of up to two years ( including money market paper ) which can be deducted from the reserve base by the issuers which cannot present evidence that such outstanding amount is held by other institutions subject to the minimum reserve system of the Eurosystem , by the ECB or by a national central bank .

Securities settlement system a system which permits the transfer of securities either free of charge or against payment . 1

Interest rate future shall mean an exchange traded forward contract .

The start date corresponds to the purchase date for operations based on repurchase agreements and foreign exchange swaps . Strip ( separate trading of interest and principal ) a zero coupon bond created in order to trade separately the claims on particular cash flows of a security and the principal of the same instrument .

Start date the date on which the first leg of a monetary policy operation is settled . The start date corresponds to the purchase date for operations based on repurchase agreements and foreign exchange swaps .

Development of infra and inter university credit transfer system compatible with the ECTS.

In order to promote co ordination of the policies of Member States to the full extent needed for the functioning of the internal market , Article 109c of the Treaty lists a set of areas where the Monetary Committee was to contribute to the preparation of the work of the EU Council . At the start of Stage Three of EMU the Monetary Committee was dissolved and the Economic and Financial Committee established .