TYPES OF ERMS

CASH-RELATED SERVICES

SECURITIES-RELATEDSERVICES

OTHER SERVICES

Cash account, and incoming and outgoing payments

Custodianservices

Execution of customers'standing orders or investment mandates

Using the Eurosystem's T2 service

Fixed-term deposits in Euro

Settlement of operationswith euro-denominated securities

Type 1

Type 2

Cash overnightinvestment

Foreign exchange transactions

Execution of customers'orders for securities purchases or sales in the secondary market

The remuneration of the accountis split up into three parts

Tier 1 investment facility

Tier 2 investment facility

Excesscashbalance

Type 2

The ERMS provider acts on an agency basis (on the customer’s behalf) with selected market institutions (best effort basis)

Excess cash balance

• The cash that cannot be accommodated under either the Tier 1 investment facility or the Tier 2 investment facility on any given day

• Opening/managing securities accounts and providing safekeeping

• Notification/processing of corporate actions

• Automatic securities lending programmes: the ERMS provider facilitates arrangements between its customers and third-party agents or ICSDs to lend their securities

• The ERMS provider will execute orders on an agency basis, on a principal basis and on a best effort basis

• Euro against other currencies and gold, in addition to reverse repos

• The ERMS provider acts on a principal basis

• The ECB’s prior approval is required when they exceed certain limits (to ensure their consistency with monetary and exchange rate policy)

Tier 1 investment facility

• The ERMS provider acts on a principal basis.

• Limited amount:

• An overall limit for the Eurosystem (each ERMS provider allocated a portion)

• A limit per customer (zero for customers who refuse to disclose their identity in the Eurosystem)

• For the range of ERMS, after customers execute apower of attorney

Type 1

The ERMS provider acts on a principal basis (on its own behalf):

• Minimum amount: €1 million
• Maturity: overnight-12 months

• These funds are reinvested in the market against collateral

Tier 2 investment facility

• The ERMS provider acts on an agency basis for the customer with selected market institutions (best effort basis)