Circular 7/2016

Operating schedule for Norges Bank’s settlement system (NBO) from 13 October 2016

The NICS Management Office has changed the operating schedule for clearing of transactions in the Norwegian Interbank Clearing System (NICS). Effective from 13 October 2016, five daily clearings in NICS (NICS Net) will be completed and sent to Norges Bank for settlement in NBO.

Norges Bank has decided to change the NBO operating schedule to conform with the new NICS operating schedule. A new settlement of NICS Net has been introduced at approximately 09:35 (intermediate clearing 1), and the time of settlement of the former late morning clearing is postponed to approximately 11:35 (intermediate clearing 2). The deadlines for the banks to meet their payment obligations in these clearings are adjusted accordingly. There are no changes to any other daily settlements in NBO.

The changes in the operating schedule have been laid down in accordance with the terms and conditions for account management, collateralisation and participation in Norges Bank's settlement system, cf. Section 1 of the terms and conditions.

This circular replaces Circular No. 6 of 10 September 2012.

Operating schedule for Norges Bank's settlement system (NBO) effective from 13 October 2016

Time	Event	Comment
Approx 05:05	Banks’ borrowing access adjusted based on changes in market values for securities and other changes in collateral
05:30	NBO opens for main account settlement. Daily settlement of interest on deposits and overnight loans (D-loans). Monthly fees are charged second business day each month
05:31	NBO LOM account opens for settlement
05:32	VPO LOM account opens for settlement
05:33	CLS LOM account opens for settlement
Approx 05.35	Receipt and settlement of NICS Net (morning clearing)
05:59	Deadline for depositing liquidity for VPO 1
06:00	Deposits in VPO LOM account locked
Approx 06:10	VPO 1 settled and VPO LOM account opened
Approx 06:40	Receipt and settlement of derivatives clearing from SIX x-clear
06:55	Earliest time for regular transfer of deposits in the VPO LOM account to another account (1)	Can transfer deposits when VPO 1 has been settled
07:00	NBO is manned	Telephone +47 22 31 60 78
07:10	Norges Bank will notify NICS Operations of any bank with insufficient funds for NICS Net (morning clearing) (2)
08:00	Deadline for banks to provide sufficient funds for NICS Net (morning clearing)	If one or more banks still have insufficient funds, the clearing will be rejected
Approx 09.35	Receipt and settlement of NICS Net (intermediate clearing 1)
09:45	Deadline for settlement of VPO 1. VPO LOM account opened (3)	Applies when settlement is delayed due to operating problems in VPS
09:55	Norges Bank will notify NICS Operations of any bank with insufficient funds for NICS Net (intermediate clearing 1) (2)
10:30	Deadline for banks to provide sufficient funds for NICS Net (intermediate clearing 1)	If one or more banks still have insufficient funds, the clearing will be rejected
Approx 11:35	Receipt and settlement of NICS Net (intermediate clearing 2)
11:55	Norges Bank will notify NICS Operations of any bank with insufficient funds for NICS Net (intermediate clearing 2) (2)
11:59	Deadline for depositing liquidity for VPO 2
12:00	Deposits in VPO LOM account locked
Approx 12:10	VPO 2 settled and VPO LOM account opened
Approx 12:15	Receipt and settlement of the security lending-pool from SIX x-clear
12:30	Earliest time for regular transfer of deposits in the VPO LOM account to another account	Can transfer deposits when VPO 2 has been settled
12:30	Deadline for banks to provide sufficient funds for NICS Net (intermediate clearing 2)	If one or more banks still have insufficient funds, the clearing will be rejected
Approx 13:35	Receipt and settlement of NICS Net (intermediate clearing 3)
13:55	Norges Bank will notify NICS Operations of any bank with insufficient funds for NICS Net (intermediate clearing 3) (2)
14:00	Deadline for settlement of VPO 2. VPO LOM account opened (4)	Applies when settlement is delayed due to operating problems in VPS
14:30	Deadline for settlement of NICS Net (intermediate clearing 3)	If one or more banks still have insufficient funds, the clearing will be rejected
15:00	Deadline for repayment of loans and return of deposits related to Scandinavian Cash Pool (SCP)	Any violation of the deadline implies a fee in accordance with separate circular on prices and fees in NBO
15:00	Payment orders with insufficient funds in the VPO LOM account or CLS LOM account are cancelled. Any balance remaining in the VPO LOM account and the CLS LOM account is transferred to the main account
15:30	Bilateral limit cut-off
Approx 15:35	Receipt and settlement of NICS Net (final clearing)
16:00	Deadline for settlement of NICS Net (final clearing)	If one or more banks still have insufficient funds, the clearing will be rejected and NICS Operations will be notified of any banks with insufficient funds
16:35	NBO closes. Queued payment orders with insufficient funds in the NBO LOM account are cancelled. Deposits in the NBO LOM account are transferred to the main account.

Norges Bank may deviate from the ordinary operational schedule in special cases such as emergency situations and during periods of the year. When deviations in the operating schedule are planned, for example in the summer, this will be published by separate circular.

Footnotes:

To avoid emptying the VPO LOM account before VPO settlement in the event of delays in the VPS, the earliest time banks may return deposits from the VPO LOM account is set at 06:55 for VPO 1 and at 12:30 for VPO 2. If the VPO LOM account is not already locked by 06:54 for VPO 1 and by 12:29 for VPO 2, Norges Bank will lock the liquidity banks have transferred to the VPO LOM account, so that the liquidity is available to VPO up to the deadlines specified in the operating schedule. This does not apply when the relevant securities settlement has been completed.
Cf. Rules for clearing and settlement of transactions in the Norwegian Interbank Clearing System (NICS), laid down by the NICS Management Office.
If VPO 1 has not been settled by 09:45, the funds deposited by banks in the VPO LOM account for VPO 1 will be made available to the banks and VPS will transfer all trades in this clearing to securities settlement 2 (VPO 2).
If VPO 2 has not been settled in Norges Bank by 14:00, the funds deposited by banks in the VPO LOM account for VPO 2 will be made available to the banks and VPS will transfer all trades in this clearing to VPO 1 on the next settlement day. To enable at least one securities settlement to be completed each day, Norges Bank may postpone the deadline for VPO 2 on days when VPO 1 has not been completed.