Circular 6/2012

Operating schedule for Norges Bank’s settlement system (NBO) from 12 October 2012

[NOT IN FORCE]

The NICS Management Office has issued a new operating schedule for clearing and settlement of transactions in the Norwegian Interbank Clearing System (NICS). Under the new operating schedule, effective from 12 October 2012, four daily clearings in NICS (NICS Net) will be completed and sent to Norges Bank for settlement in NBO. Norges Bank has therefore decided to change the NBO operating schedule to conform with the new NICS operating schedule. The times in the schedule for receipt and settlement of derivative clearing, the security lending pool and NICS Net have been adjusted in accordance with normal receipt times.

The changes in the operating schedule have been laid down in accordance with the agreement between the banks and Norges Bank on account management, settlement and collateral, cf. Section 6 of the agreement.

This circular replaces Circular No. 4 of 24 August 2010.

Operating schedule for Norges Bank's settlement system (NBO) effective from 12 October 2012.

Time	Event	Comment
Approx 05:05	Banks’ borrowing facility 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 05.40	Receipt and settlement of NICS Net (early morning settlement)
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 emptying of VPO LOM account (1)	Can transfer deposits when VPO1 has been settled
07:00	NBO is manned (tel. +47 22 31 60 78)
07:10	Norges Bank will notify NICS Operations of any bank with insufficient cover for NICS Net (morning settlemen) (2)
08:00	Deadline for cover of NICS Net (early morning settlement)	If one or more banks still have insufficient cover, the clearing will be rejected
09:45	Deadline for settlement of VPO 1. VPO LOM account opened (3)	Applies when settlement delayed by operating problems in VPS
Approx 11:05	Receipt and settlement of NICS Net (late morning settlement)
11:25	Norges Bank will notify NICS Operations of any bank with insufficient cover for NICS Net (late morning settlement)
11:59	Deadline for depositing liquidity for VPO 2
12:00	Deadline for cover of NICS Net (late morning settlement)	If one or more banks still have insufficient cover, the clearing will be rejected
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
Approx 13:35	Receipt and settlement of NICS Net (afternoon settlement)
13:55	Norges Bank will notify NICS Operations of any bank with insufficient cover for NICS Net (afternoon settlement)
14:00	Deadline for settlement of VPO 2. VPO LOM account opened (4)	Applies when settlement delayed by operating problems in VPS
14:30	Deadline for settlement of NICS Net (afternoon settlement)	If one or more banks still have insufficient cover, the clearing will be rejected
15:00	Deadline for repayment of loans and return of deposits related to Scandinavian Cash Pool (SCP)	If collateralised deposits in Norges Bank are not returned, a fee of NOK 50.000 will be charged. If loans related to SCP are not repaid, a fee of NOK 25.000 will be charged
15:00	Payment orders with insufficient cover 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 settlement)
16:00	Deadline for settlement of NICS Net (final settlement)	If one or more banks still have insufficient cover, the clearing will be rejectedand NICS Operations will be notified of any banks with insufficient cover
16:35	NBO closes. Queued payment orders with insufficient cover in the NBO LOM account are cancelled. Deposits in the NBO LOM account are transferred to the main account.	Norges Bank can extend opening hours in special cases. Norges Bank can determine different opening hours during periods of the year, for example in the summer. This will be published by separate circular.

¹To 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 12:30 for VPO 2. If the VPO LOM account is not already locked at by 06:54 for VPO 1 and 12:29 for VPO 2, Norges Bank will lock the liquidity banks have transferred to the VPO LOM account manually, 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.

²Cf. Rules for clearing and settlement of transactions in the Norwegian Interbank Clearing System (NICS), Section 5.1, laid down by the NICS Management Office 6 July 2010.

³If 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).

⁴If 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 move the deadline for VPO 2 to a later time on days when VPO 1 has not been completed.