Thus , in the case of securities with coupons , the interest accrued from the last payment of interest is included and , in that of securities issued at a discount , the interest accumulated since the issue is included .

Zero coupon bonds include all issues without coupon payment .

The Eurosystem may apply specific solutions for the cross border use of non marketable assets .

The ESCB may apply specific solutions for the cross border use of non marketable assets .

This implies that each national central bank has a securities account in its securities administration for each of the other national central banks ( and for the ECB ) .

Custodian an entity which undertakes the safekeeping and administration of securities and other financial assets on behalf of others .

Table 1 Underlying tier one assets used in the transactions Characteristics Name Maturity date Coupon definition Coupon frequency Residual maturity Haircut

Electronic money shall mean monetary value as represented by a claim on the issuer which is ( a ) stored on an electronic device ( b ) issued on receipt of funds of an amount not lower in value than the monetary value issued

Table 1 Underlying marketable assets used in the transactions Characteristics Name Asset class Maturity date Coupon definition Coupon frequency Residual maturity Haircut

Cross border settlement a settlement which takes place in a country other than the country or countries in which one or both of the parties to the trade are located .

Thus , a credit institution is ( i ) an undertaking whose business is to receive deposits or other repayable funds from the public and to grant credit for its own account , or ( ii ) an undertaking or any other legal person , other than those under ( i ) , which issues means of payment in the form of electronic money . Cross border settlement a settlement which takes place in a country other than the country or countries in which one or both of the parties to the trade are located .

( ) A coupon payment is considered a variable rate payment if the coupon is linked to a reference interest rate and if the resetting period corresponding to this coupon is no longer than one year .

Custodian an entity which undertakes the safekeeping and administration of securities and other financial assets on behalf of others . Day count convention the convention regulating the number of days included in the calculation of interest on credits .

43 A coupon payment is considered a variable rate payment if the coupon is linked to a reference interest rate and if the resetting period corresponding to this coupon is no longer than one year .

( 62 ) A coupon payment is considered a variable rate payment if the coupon is linked to a reference interest rate and if the resetting period corresponding to this coupon is no longer than one year .

( 43 ) A coupon payment is considered a variable rate payment if the coupon is linked to a reference interest rate and if the resetting period corresponding to this coupon is no longer than one year .

( 1 ) The valuation haircut levels applied to fixed coupon debt instruments are also applicable to debt instruments , the coupon of which is linked to a change in the rating of the issuer itself or to inflation indexed bonds . 2 ) A coupon payment is considered a variable rate payment if the coupon is linked to a ( reference interest rate and if the resetting period corresponding to this coupon is no longer than one year .

( 70 ) A coupon payment is considered a variable rate payment if the coupon is linked to a reference interest rate and if the resetting period corresponding to this coupon is no longer than one year .

Thus , a credit institution is ( i ) an undertaking whose business is to receive deposits or other repayable funds from the public and to grant credit for its own account , or ( ii ) an undertaking or any other legal person , other than those under ( i ) , which issues means of payment in the form of electronic money . Cross border settlement a settlement which takes place in a country other than the country or countries in which one or both of the parties to the trade are located .

Table 1 Underlying tier one assets used in the transactions Characteristics Name Asset class Maturity date Coupon definition Coupon frequency Residual maturity Haircut Asset A Asset B

Table 1 Underlying tier one assets used in the transactions Characteristics Name Asset class Maturity date Coupon definition Coupon frequency Residual maturity Haircut Asset A Asset B

( b ) issued on receipt of funds of an amount not lower in value than the monetary value issued

In some Member States , branches of the national central bank may be closed on NCB business days owing to local or regional bank holidays .

In some Member States branches of the national central bank may be closed on NCB business days owing to local or regional bank holidays .

Minimum allotment ratio the lower limit , expressed in percentage terms , of the ratio of bids at the marginal interest rate to be allotted in a tender operation .

In some Member States , branches of the national central bank may be closed on NCB business days owing to local or regional bank holidays .

Minimum allotment ratio the lower limit , expressed in percentage terms , of the ratio of bids at the marginal interest rate to be allotted in a tender operation . The Eurosystem may decide to apply a minimum allotment ratio in its tender operations .

The risk control measures applied to a debt instrument with more than one type of coupon payment depend only on the coupon payments during the remaining life of the instrument .

the risk control measures applied to a debt instrument with more than one type of coupon payment depend only on the coupon payments during the remaining life of the instrument .

coupon payment depend only on the coupon payments during the remaining life of the instrument .

The debit value date for the payer 's payment account shall be the point in time at which that account is debited .

The risk control measures applied to a marketable debt instrument with more than one type of coupon payment depend only on the coupon payments during the remaining life of the instrument .

or ( ii ) an undertaking or any other legal person , other than those under ( i ) , which issues means of payment in the form of electronic money .

Coupon accruals and amortisation of premium or discount are calculated and booked from the settlement date of the purchase of the security until the settlement date of sale , or until maturity date .

Bond A is a fixed coupon bond maturing on 26 August 2001 .

The risk control measures applied to a marketable debt instrument included in categories I to IV with more than one type of coupon payment solely depend on the coupon payments during the remaining life of the instrument .

Eligible assets Individual debt instruments included in category V that are theoretically valued according to Section 6.5 are subject to an additional valuation haircut .

Coupon definition Fixed Pre fixed floating Zero coupon

In the case of a repurchase agreement or swap , the maturity date corresponds to the repurchase date . Maximum bid limit the limit on the largest acceptable bid from an individual counterparty in a tender operation .

For instance , in respect of the procedures for counterparties delivery of underlying assets to the national central banks ( in the form of a pool of collateral pledged with the national central bank or as repurchase agreements based on individual assets specified for each transaction ) , minor differences may occur with regard to the timing of the valuation and other operational features of the risk control framework .

Despite their inclusion in the tier one list , national central banks may decide not to accept as underlying assets the following instruments Debt instruments falling due for repayment before the maturity date of the monetary policy operation for which they are being used as underlying assets 38 Debt instruments with an income flow ( e.g. a coupon payment ) occurring in the period until the maturity date of the monetary policy operation for which they are being used as underlying assets .

Risk control measures are applied to the assets underlying ESCB monetary policy operations in order to protect the ESCB against the risk of financial loss if underlying assets have to be realised owing to the default of a counterparty .

2000X0776 EN 01.03.2010 007.001 56 M7 TABLE 7 Levels of valuation haircuts applied to eligible marketable assets ( percentages ) Liquidity categories Residual maturity ( years ) Category I fixed coupon zero coupon Category II fixed coupon zero coupon Category III fixed coupon zero coupon Category IV fixed coupon zero coupon Category V

The main objectives of TARGET2 will be ( i ) to better meet customers needs by providing an extensively harmonised service level , ( ii ) to guarantee cost efficiency and ( iii ) to be prepared for swift adaptation to future developments , including the enlargement of the European Union and of the Eurosystem .

Without prejudice to Article 46 , Member States shall ensure that the payment service user may not revoke a payment order after the time of its acceptance by the payer 's payment service provider for payments initiated by the payer or by the payee 's payment service provider for payments initiated by or through the payee .