Revised terms and conditions for account management at Norges Bank (NBO)
The terms and conditions for account management at Norges Bank (NBO) will be amended effective from 18 June 2018. The main changes are as follows:
- The rules for payment settlement in Norges Bank have been adapted to the Regulation on the execution of securities settlement, laid down by the Ministry of Finance on 22 September 2016, pursuant to Section 4-2, fourth paragraph, of the Act relating to Payment Systems etc. The Regulation permits the use of deposits in securities settlement accounts with Norges Bank for the execution of securities settlement on the same business day as the opening of insolvency proceedings against a participant. Under the current terms and conditions, the account is terminated with immediate effect if the participant is placed under public administration or enters into insolvency proceedings. The amendments appear in Chapter 3 of the revised terms and conditions for account management. Similar amendments will be implemented for central counterparties that participate in securities settlement in Norges Bank.
- The requirements relating to user management and security when using NBO Online will be tightened. The duties of a user manager are clarified and a requirement is introduced under which payment orders registered in NBO Online must be verified by another user before they can be settled in NBO. The amendments are included in Chapter 2 of the revised terms and conditions. These amendments will be implemented in connection with the review of user administration for NBO Online in 2018.
In addition, Norges Bank has made editorial changes to the terms and conditions to make the provisions clearer.
This circular constitutes an announcement of the revised terms and conditions for banks and central counterparties respectively, with one month's notice.
The revised terms and conditions for account management at Norges Bank (NBO) for banks supersede the terms and conditions for account management, collateralisation and participation in Norges Bank's settlement system (NBO) which entered into force on 1 October 2015.