Norges Bank

Circular 8/2019

Operating schedule for Norges Bank’s settlement system from 16 January 2020

The banking industry is currently planning to introduce a new solution for instant payments (Straks 2.0/NICS Real) in January 2020. During a pilot period, a few banks will adopt the new solution upon agreement with Bits AS. The plan is for the solution to be made available to all banks participating in NICS in the course of the first half of 2020.

In NICS Real, five daily clearings of instant payments will start at fixed times in accordance with the operating schedule for NICS. The net payment positions will be settled in Norges Bank’s Settlement System (NBO) as interbank settlements.

The clearings from NICS Real will be settled in a separate sub-account (Straks LOM account) at Norges Bank for each bank that uses Norges Bank as its settlement bank. The settlement times are included in the operational schedule for NBO as an addition to each of the five daily settlements of NICS Net.

Each bank’s deposit in its Straks LOM account in NBO will be available as collateral for payments in NICS Real around the clock on all calendar days. This will also apply during the time period from when the Straks LOM account is closed on a settlement day until it is opened on the following settlement day.

The bank may change the amount on deposit in its Straks LOM account at any time around the clock on all calendar days, subject to the following conditions and exceptions:

  • All changes of amounts on deposit in a Straks LOM account must be confirmed by NICS Real. Please refer to Bits AS for information on the rules for NICS Real.
  • Amounts on deposit in a Straks LOM account cannot be changed during the time period from when the Straks LOM account is closed on a settlement day until it is opened on the following settlement day, normally approximately fifteen minutes.
  • Amounts on deposit in a Straks LOM account cannot be changed between approximately 2:30 am and approximately 3:25 am.
  • Amounts on deposit in a Straks LOM account cannot be changed when NBO is closed for upgrading, system maintenance etc. In such cases, Norges Bank will inform the banks in advance.

There are no other material changes to the operational schedule.

The changes in the operating schedule for NBO are laid down in accordance with Section 1 of  Terms and Conditions for account management at Norges Bank.

This Circular supersedes Circular 1/2019.                                    

Operating schedule for Norges Bank's settlement system (NBO) effective from 16 January 2020

Time

Event

Comment

05:30

NBO is opened for main account settlement

 

05:31

NBO LOM account is opened for settlement

 

05:32

VPO LOM account is opened for settlement

 

05:33

CLS LOM account is opened for settlement

 

Approx. 05:35 and approx. 06:05

Receipt and settlement of the morning clearing from NICS Net and NICS Real

 

05:59

Deadline for depositing liquidity for VPO 1

 

06:00

Deposits in VPO LOM account locked

 

Approx. 06:05

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)

Bank may 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 and approx. 09:40

Receipt and settlement of intermediate clearing 1 from NICS Net and NICS Real

 

09:45

Deadline for settlement of VPO 1. VPO LOM account opened

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 and approx. 11:40

Receipt and settlement of intermediate clearing 2 from NICS Net and NICS Real

 

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. 12:05

VPO 2 settled and VPO LOM account opened

 

Approx. 12:10

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

Bank may 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

13:00

Deadline for settlement of VPO 2. VPO LOM account opened

Applies when settlement is delayed due to operating problems in VPS

Approx. 13:35 and approx. 13:40

Receipt and settlement of intermediate clearing 3 from NICS Net and NICS Real

 

13:55

Norges Bank will notify NICS Operations of any bank with insufficient funds for NICS Net (intermediate clearing 3) (2)

 

14:29

Deadline for depositing liquidity for VPO 3

 

14:30

Deposits in VPO LOM account locked

 

14:30

Deadline for banks to provide sufficient funds for NICS Net (intermediate clearing 3)

If one or more banks still have insufficient funds, the clearing will be rejected

Approx. 14:35

VPO 3 settled and VPO LOM account opened

 

15:00

Earliest time for regular transfer of deposits in the VPO LOM account to another account (1)

Bank may transfer deposits when VPO 3 has been settled

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 CLS LOM account are cancelled. Any balance remaining in the CLS LOM account is transferred to the main account

 

15:30

Bilateral limit cut-off

 

Approx. 15:35 and approx. 15:40

Receipt and settlement of final clearing from NICS Net and NICS Real

 

16:00

Deadline for banks to provide sufficient funds 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

16:30

Straks LOM account is closed to changes of amounts on deposit as collateral for instant payments in NICS Real

 

16:35

NBO is closed. Any queued payment orders with insufficient funds are cancelled. Deposits in the NBO LOM account and the VPO LOM account are transferred to the main account.

 

Approx. 16:45

A new settlement day in NBO is opened and Straks LOM account is opened for changes of amounts on deposit as collateral for instant payments in NICS Real

 

Norges Bank may deviate from the ordinary operational schedule in special cases such as emergency situations and during periods of the year. Any planned deviations in the operating schedule will be announced separately.

Footnotes

1In the event of delays in the VPO-clearings from VPS, Norges Bank will lock the liquidity on VPO LOM accounts by 06:54 for VPO 1, by 12:29 for VPO 2 and by 14:59 for VPO 3. This is done to avoid that deposits on VPO LOM accounts are transferred to another account before VPO has been is settled in NBO. Thus, deposits in VPO LOM accounts will be available until the deadlines for settlement of VPO 1 at 09:45 and VPO 2 at 13:00. No deadline has been laid down for settlement of VPO 3.

2Cf Rules for clearing and settlement of transactions in the Norwegian Interbank Clearing System (NICS), laid down by the Bits AS.

Published 16 December 2019 13:00