THE SINGLE MONETARY POLICY IN STAGE THREE

Chapter 5 - Procedures

5.1 Tender Procedures

5.1.1 General Considerations

ESCB open market operations are normally executed in the form of tender procedures. The ESCB tender procedures are performed in six operational steps as specified in Box 3.

Box 3. Operational steps for tender procedures

Step 1. Tender announcement

a. Announcement by the ECB through public wire services
b. Announcement by the national central banks through national wire services and directly to individual counterparties (if deemed necessary)

Step 2. Counterparties' preparation and submission of bids

Step 3. Compilation of bids by the ESCB

Step 4. Tender allotment and announcement of tender results
a. ECB allotment decision
b. Announcement of the allotment result

Step 5. Certification of individual allotment results

Step 6. Settlement of the transactions (see Section 5.3)

The ESCB distinguishes between two different types of tender procedures: standard tenders and quick tenders. The procedures for standard and quick tenders are identical except for the time frame and the range of counterparties.

a. Standard tenders

Standard tenders are executed within 24 hours from the announcement of the tender to the certification of the allotment result (where the time between the submission deadline and the announcement of the allotment result is approximately two hours). Chart 1 gives an overview of the normal time frame for the operational steps for standard tenders. The ECB may decide to adjust the time frame in individual operations, if deemed appropriate.

The main refinancing operations, the longer-term refinancing operations and structural operations (except outright transactions) are always executed in the form of standard tenders. Counterparties fulfilling the general eligibility criteria specified in Section 2.1 may participate in standard tenders.

Chart 1. Normal time frame for the operational steps for standard tenders

b. Quick tenders

Quick tenders are normally executed within one hour from the announcement of the tender to the certification of the allotment result. The normal time frame for the operational steps for quick tenders is specified in Chart 2. The ECB may decide to adjust the time frame in individual operations, if deemed appropriate. Quick tenders are only used for the execution of fine-tuning operations. The ESCB may select, according to the criteria and procedures specified in Section 2.2, a limited number of counterparties to participate in quick tenders.

Chart 2. Normal time frame for the operational steps for quick tenders

c. Fixed rate and variable rate tenders

The ESCB has the option of conducting either fixed rate (volume) or variable rate (interest) tenders¹². In a fixed rate tender, the ECB specifies the interest rate in advance and participating counterparties bid the amount of money they want to transact at the fixed interest rate¹³. In a variable rate tender, counterparties bid the amounts of money and the interest rates at which they want to enter into transactions with the national central banks¹⁴.

5.1.2 Tender Operations Calendar

a. Main and longer-term refinancing operations

The main and the longer-term refinancing operations are executed according to an indicative calendar published by the ESCB. The calendar is published at least three months before the start of the year for which it is valid. The normal trade days for the main and the longer-term refinancing operations are specified in Table 2. The ECB aims to ensure that counterparties in all Member States can participate in the main and the longer-term refinancing operations. Therefore, when compiling the calendar for these operations, the ECB makes appropriate adjustments to the normal schedule so as to take into account bank holidays in the individual Member States.

Table 2. Normal trade days for the main and the longer-term refinancing operations

Type of operation Normal trade day (T)

Main refinancing operations Each Tuesday

Longer-term refinancing operations
The first Wednesday of each maintenance period

(if minimum reserves are applied); or

The first Wednesday of each month

(if no minimum reserves are applied)

b. Structural operations

Structural operations through standard tenders are not executed according to any pre-specified calendar. However, structural operations are normally conducted and settled only when the financial markets, and the relevant national RTGS and securities settlement systems are open in all Member States.

c. Fine-tuning operations

Fine-tuning operations are not executed according to any pre-specified calendar. The ECB may decide to conduct and settle fine-tuning operations whenever the financial market, and the relevant national RTGS and securities settlement systems are open in at least one Member State. Only national central banks of Member States where the financial markets, and the relevant national RTGS and securities settlement systems are open (on the trade day, the settlement day and the reimbursement day) participate in such operations.

5.1.3 Announcement of Tender Operations

ESCB standard tenders are publicly announced by means of wire services¹⁵. In addition, national central banks may announce the tender operation directly to counterparties without access to wire services. The public tender announcement message normally contains the following information:

the reference number of the tender operation;
the date of the tender operation;
the type of operation (provision or absorption of liquidity and the type of monetary policy instrument to be used);
the maturity of the operation;
the type of auction (fixed rate or variable rate tender);
the method of allotment ("Dutch" or "American" auction, as defined in Section 5.1.5d);
the intended operation volume (only in the case of the longer-term refinancing operations);
the fixed tender interest rate/price/swap point (only in the case of fixed rate tenders);
the minimum/maximum accepted interest rate/price/swap point (if applicable);
the start date and the maturity date of the operation (if applicable) or the value date and maturity date of the instrument (only in the case of the issuance of debt certificates);
the currencies involved and the currency, the amount of which is kept fixed (only in the case of foreign exchange swaps);
the reference spot exchange rate to be used for the calculation of bids (only in the case of foreign exchange swaps);
the maximum bid limit (if any);
the minimum allotment (if any);
the time schedule for the submission of bids.

With a view to enhancing transparency in its fine-tuning operations, the ESCB normally announces quick tenders publicly in advance. However, under exceptional circumstances, the ECB may decide not to announce quick tenders publicly in advance. The announcement of quick tenders follows the same procedures as that for standard tenders. In a quick tender, regardless of whether it is announced publicly or not, the selected counterparties are contacted directly by the national central banks.

5.1.4 Counterparties' Preparation and Submission of Tender Bids

Counterparties' tender bids must be in a form that follows the pro forma example provided by the national central banks for the relevant operation. The tender bids must be submitted to the national central bank of a Member State in which the institution has an establishment (head office or branch). The tender bids of an institution may only be submitted by one establishment (either the head office or a designated branch) in each Member State. Bids submitted after the deadline specified in the announcement message are discarded. Compliance with the deadline is judged by the national central banks. The national central banks may also discard bids which are incomplete or which do not follow the pro forma example. If a bid is discarded, the respective national central bank informs the counterparty about its decision prior to the tender allotment.

In fixed rate tenders, counterparties shall state in their bids the amount of money that they are willing to transact with the national central banks¹⁶.

In variable rate tenders, counterparties may submit several bids. In each bid they shall state the amount of money that they are willing to transact with the national central banks, and the respective interest rate¹⁷ ¹⁸. The interest rates bid must be a multiple of 0.01 percentage points. In case of a variable rate foreign exchange swap tender, the swap points are to be quoted according to standard market conventions and bids must be a multiple of 0.01 swap points.

Bids can be submitted for a minimum amount established by the ECB and multiples of this amount. The ECB may, at its discretion, impose a maximum bid limit in order to discard disproportionately large bids.

Counterparties are expected always to be in a position to cover their tender bids by a sufficient amount of eligible underlying assets. The contractual or regulatory arrangements applied by the respective national central bank (or the ECB) allow the ESCB to impose penalties if a counterparty is not able to transfer a sufficient amount of underlying assets to settle the amount of liquidity it has been allotted in a tender operation. The contractual or regulatory arrangements applied by the respective national central bank (or the ECB) also give the ESCB the right to check underlying assets available to counterparties in order to detect cases of excessive bidding and to impose penalties if such excessive bidding is evidenced¹⁹.

5.1.5 Tender Allotment Procedures

a. Fixed rate tender operations

In the allotment of a fixed rate tender, the bids received from counterparties are added together. If the aggregate bid exceeds the total amount of liquidity to be allotted, the submitted bids will be satisfied pro rata, according to the ratio of the amount to be allotted to the aggregate bid amount (see Box 4). However, the ECB may decide to allot a minimum amount to each bidder in fixed rate tenders.

Box 4. Allotment of fixed rate tenders

Where:

A : total allotted amount

n : total number of counterparties

a_i : bid amount of the i th counterparty

all% : percentage of allotment

all_i : total allotted amount to the i th counterparty

The percentage of allotment is:

The allotted amount to the ith counterparty is:

b. Variable rate tenders in euro

In the allotment of liquidity-providing variable rate tenders in euro, bids are listed in diminishing order of offered interest rates. Bids with the highest interest rate levels are satisfied as having priority and successively lower interest rate bids are accepted until the total liquidity to be allotted is exhausted. If, at the lowest interest rate level accepted (i.e. the marginal interest rate), the aggregate bid amount exceeds the remaining allotment, the amount is allocated pro rata among the bids according to the ratio of the remaining amount to be allotted to the total bid amount at the marginal interest rate (see Box 5).

In the allotment of liquidity-absorbing variable rate tenders (to be used for the issuance of debt certificates and the collection of fixed-term deposits), bids are listed in increasing order of offered interest rates (or diminishing order of offered prices). Bids with the lowest interest rate (highest price) levels are satisfied as having priority and successively higher interest rate bids (lower price bids) are accepted until the total liquidity to be absorbed is exhausted. If, at the highest interest rate (lowest price) level accepted (i.e. the marginal interest rate/price), the aggregate bid amount exceeds the remaining allotment, the amount is allocated pro rata among the bids according to the ratio of the remaining amount to be allotted to the total bid amount at the marginal interest rate/price (see Box 5).

The ECB may decide to allot a minimum amount to each successful bidder in variable rate tenders.

Box 5. Allotment of variable rate tenders in euro

(The example refers to bids quoted in the form of interest rates)

Where:

A : total allotted amount

r_s : s th interest rate bid by the counterparties

n : total number of counterparties

a(r_s)_i : bid amount at s th interest rate (r_s) by the ith counterparty

a(r_s) :
total bid amount at s th interest rate (r_s)

r_m :
marginal interest rate

for a liquidity-providing tender operation,

for a liquidity-absorbing tender operation

r_m-1 :
interest rate before the marginal interest rate (last interest rate at which bids

are completely satisfied),

for a liquidity-providing tender operation,

for a liquidity-absorbing tender operation

all%(r_m) : percentage of allotment at marginal interest rate

all(r_s)_i : allotment to the i th counterparty at s th interest rate

all_i : total allotted amount to the i th counterparty

The percentage of allotment at the marginal interest rate is:

The allotment to the i th counterparty at the marginal interest rate is:

The total allotment to the i th counterparty is:

c. Variable rate foreign exchange swap tenders

In the allotment of liquidity-providing variable rate foreign exchange swap tenders, bids are listed in increasing order of swap point quotations²⁰. The bids with the lowest swap point quotations are satisfied as having priority and successively higher swap point quotations are accepted until the total amount of the fixed currency to be allotted is exhausted. If, at the highest swap point quotation accepted (i.e. the marginal swap point quotation), the aggregate bid amount exceeds the remaining allotment, the amount is allocated pro rata among the bids according to the ratio of the total bid amount at the marginal swap point quotation to the remaining allotted amount (see Box 6).

In the allotment of liquidity-absorbing variable rate foreign exchange swap tenders, bids are listed in diminishing order of offered swap point quotations. The bids with the highest swap point quotations are satisfied as having priority and successively lower swap point quotations are accepted until the total amount of the fixed currency to be absorbed is exhausted. If, at the lowest swap point quotation accepted (i.e. the marginal swap point quotation), the aggregate bid amount exceeds the remaining allotment, the amount is allocated pro rata among the bids according to the ratio of the total bid amount at the marginal swap point quotation to the remaining allotted amount (see Box 6).

Box 6. Allotment of variable rate foreign exchange swap tenders

Where:

A : total allotted amount

_s : s th swap point quotation bid by the counterparties

n : total number of counterparties

a( _s)_i : bid amount at s th swap point quotation (D _s) by the i th counterparty

a( _s) :
total bid amount at s th swap point quotation (D _s)

_m :
marginal swap point quotation

for a liquidity-providing foreign exchange swap operation,

for a liquidity-absorbing foreign exchange swap operation

_m-1 :
swap point quotation before the marginal swap point quotation (last swap point

quotation at which bids are completely satisfied),

for a liquidity-providing tender operation,

for a liquidity-absorbing tender operation

all%(_m) : percentage of allotment at marginal swap point quotation

all(_s)_i : allotment to the i th counterparty at s th swap point quotation

all_i : total allotted amount to the i th counterparty

The percentage of allotment at the marginal swap point quotation is:

The allotment to the i th counterparty at the marginal swap point quotation is:

The total allotment to the i th counterparty is:

d. Type of auction

For variable rate tenders, the ESCB may apply either single rate or multiple rate auction procedures. In a single rate auction ("Dutch auction"), the allotment interest rate/price/swap point applied for all satisfied bids is equal to the marginal interest rate/price/swap point (i.e. the interest rate/price/swap point at which the total allotment was exhausted). In a multiple rate auction ("American auction"), the allotment interest rate/price/swap point is equal to the interest rate/price/swap point offered for each individual bid.

5.1.6 Announcement of Tender Results

The results of standard and quick tenders are announced publicly by means of wire services. In addition, national central banks may announce the allotment result directly to counterparties without access to wire services. The public tender result message normally contains the following information:

reference number of the tender operation;
the date of the tender operation;
the type of operation;
the maturity of the operation;
the total amount bid by ESCB counterparties;
the number of bidders;
the currencies involved (only in the case of foreign exchange swaps);
the total amount allotted;
the percentage of allotment (only in the case of fixed rate tenders);
the spot exchange rate (only in the case of foreign exchange swaps);
the marginal interest rate/price/swap point accepted and the percentage of allotment at the marginal interest rate/price/swap point (only in the case of variable rate tenders);
the minimum bid rate, maximum bid rate and weighted average allotment rate (only in the case of multiple rate auctions);
the start date and the maturity date of the operation (if applicable) or the value date and maturity date of the instrument (only in the case of the issuance of debt certificates);
the minimum allotment (if any).

The national central banks will directly certify the individual allotment result to all the counterparties that have submitted bids.

5.2 Procedures for Bilateral Operations

a. General considerations

The national central banks may execute operations on the basis of bilateral procedures²¹. Bilateral procedures may be used for fine-tuning open market operations and structural outright operations. Bilateral procedures are defined in a broad sense as any procedures where the ESCB conducts a transaction with one or a few counterparties without a tender. In this respect, two different types of bilateral procedures can be distinguished: operations where counterparties are contacted directly by the ESCB, and operations executed through stock exchanges and market agents.

b. Direct contact with counterparties

In this procedure, the national central banks directly contact one or a few domestic counterparties, which are selected according to the criteria specified in Section 2.2. According to the precise instructions given by the ECB, the national central banks decide whether to enter into a deal with the counterparties. The transactions are settled through the national central banks.

If the Governing Council of the ECB were to decide that, under exceptional circumstances, bilateral operations could also be executed by the ECB itself (or by one or a few national central banks acting as the operating arm of the ECB), the procedures for such operations would be adapted accordingly. In this case, the ECB (or the national central bank(s) acting as the operating arm of the ECB) would directly contact one or a few counterparties in the euro area, selected according to the criteria specified in Section 2.2. The ECB (or the national central bank(s) acting as the operating arm of the ECB) would decide whether to enter into a deal with the counterparties. The transactions would nevertheless be settled in a decentralised manner through the national central banks.

Bilateral operations through direct contact with counterparties can be applied for reverse transactions, outright transactions, foreign exchange swaps and the collection of fixed-term deposits.

c. Operations executed through stock exchanges and market agents

The national central banks can execute outright transactions through stock exchanges and market agents. For these operations, the range of counterparties is not restricted a priori and the procedures are adapted to the market conventions for the debt instruments transacted. The Governing Council of the ECB will decide if, under exceptional circumstances, the ECB itself (or one or a few national central banks acting as the operating of the ECB) may execute fine-tuning outright operations through stock exchanges and market agents.

d. Announcement of bilateral operations

Bilateral operations are normally not announced publicly in advance. In addition, the ECB may decide not to announce the results of bilateral operations publicly.

e. Operating days

The ECB may decide to conduct and settle fine-tuning bilateral operations whenever the financial market, the national RTGS system and the national securities settlement system(s) are open in at least one Member State. Only national central banks of Member States where the financial markets, the national RTGS systems and the national securities settlement system(s) are open (on the trade day, the settlement day and the reimbursement day) participate in such operations.

Outright bilateral operations for structural purposes are normally conducted and settled only when the financial markets, the national RTGS systems and the national securities settlement systems are open in all Member States.

5.3 Settlement Procedures

5.3.1 General Considerations

Money transactions relating to the use of ESCB standing facilities or to the participation in open market operations are settled on the counterparties' accounts with the national central banks (or on their accounts with settlement banks participating in TARGET). Money transactions are settled only after (or at the moment of) the final transfer (if necessary) of the assets underlying the operation. This implies that underlying assets either need to have been pre-deposited/pre-delivered at the national central banks or to be settled on an intraday delivery-versus-payment basis with the said central banks. The transfer of underlying assets is executed either via the counterparties' safe custody accounts with national central banks or via their securities settlement accounts with a securities depository easily accessible to the relevant national central bank. Counterparties without a safe custody account with a national central bank or a securities settlement account with a securities depository easily accessible to the relevant national central bank may settle the transactions of underlying assets through a securities settlement account with a custodian.

Further provisions related to the settlement procedures are defined in the contractual arrangements applied by the national central banks (or the ECB) for the specific monetary policy instruments. The settlement procedures may differ slightly between national central banks because of differences in national law and operational practices.

5.3.2 Settlement of Open Market Operations

Open market operations based on standard tenders (the main refinancing operations, the longer-term refinancing operations and structural operations) are normally settled on the first business day following the trade day. As a matter of principle, the ESCB aims to settle the transactions related to its open market operations at the same time in all Member States with all counterparties that have provided sufficient underlying assets. However, because of operational constraints and the technical features of national securities settlement systems, the timing within the day of the settlement of open market operations may differ across the euro area at the start of Stage Three. The time of settlement of the main and the longer-term refinancing operations normally coincides with the time of reimbursement of a previous operation of corresponding maturity.

The ESCB aims to settle open market operations based on quick tenders and bilateral procedures on the trade day. However, the ESCB may for operational reasons occasionally apply other settlement dates for these operations, in particular for outright transactions (for fine-tuning as well as structural purposes) and foreign exchange swaps (see Table 3).

Table 3. Normal settlement dates for ESCB open market operations^a)

Monetary policy instrument Settlement date for operations based on standard tenders Settlement date for operations based on quick tenders or bilateral procedures

Reverse transactions T+1^b) T

Outright transactions - According to market convention for underlying assets

Issuance of debt certificates T+1 -

Foreign exchange swaps - T, T+1 or T+2

Collection of fixed-term deposits - T

Notes to the table:

a) In the table, T refers to the trade day. The settlement date connotation refers to business days only.

b) If the normal settlement date for the main or the longer-term refinancing operations coincides with a bank holiday, the ECB may decide to apply a different settlement date, including same-day settlement. The settlement dates for the main and the longer-term refinancing operations are specified in advance in the ESCB's tender operations calendar (see Section 5.1.2).

5.3.3 End-of-Day Procedures

The end-of-day procedures are specified in documentation related to the national RTGS systems and the TARGET system. According to these procedures, the normal closing time for the TARGET system (i.e. all national RTGS systems) is 6 p.m. (ECB time). No further payment orders are accepted for processing in the national RTGS systems after the closing time, although remaining payment orders accepted before the closing time are still processed. The national central banks start their end-of-day procedures at 6.30 p.m. (ECB time). Counterparties' requests for access to the marginal lending facility must be submitted to the respective national central bank before 6 p.m. (ECB time), while requests for access to the deposit facility are accepted until 6.30 p.m. (ECB time).

Any negative balances on the settlement accounts (in the national RTGS systems) of eligible counterparties remaining after the finalisation of the end-of-day control procedures are automatically considered to be a request for recourse to the marginal lending facility (see Section 4.1). The ESCB may, according to the contractual or regulatory arrangements applied by the respective national central bank, impose penalties on an institution which has negative balances on its settlement account at the end of the day if this institution does not fulfil the access conditions for the marginal lending facility²².

12. For the longer-term refinancing operations, the ECB may decide to adapt the features of the tender procedures in order to ensure that the ESCB does not, as a rule, send signals to the market and therefore normally acts as a rate taker.

13. In fixed rate foreign exchange swap tenders, the ECB fixes the swap points of the operation and the counterparties offer the amount of currency kept as fixed that they wish to sell (and buy back) or buy (and sell back) at that rate.

14. In variable rate foreign exchange swap tenders, the counterparties bid the amount of the currency kept as fixed and the swap point quotation at which they wish to enter into the operation.

15. The wire services used by the ECB and the national central banks are specified in a list available from the ECB and the national central banks.

16. In fixed rate foreign exchange swap operations, the amount of the currency kept fixed that the counterparty is willing to transact with the ESCB is to be stated.

17. With regard to the issuance of ESCB debt certificates, the ECB may decide that bids are to be expressed in the form of a price rather than an interest rate. In this case, prices shall be quoted as a percentage of the nominal amount.

18. In variable rate foreign exchange swap operations, the amount of the currency kept fixed that the counterparty is willing to transact with the ESCB and the respective swap point quotation are to be stated.

19. Excessive bidding is considered to have taken place if the counterparty could not possibly have delivered sufficient underlying assets to cover its tender bid, when taking account of its holdings of securities and borrowing potential.

20. Swap point quotations are listed in increasing order taking into account the sign of the quotation, which depends on the sign of the interest rate differential between the foreign currency and the euro. If, for the maturity of the swap operation, the foreign currency interest rate is higher than the corresponding interest rate for the euro, the swap point quotation is positive (euro quoted at premium against the foreign currency). Conversely, if the foreign currency interest rate is lower than the corresponding interest rate for the euro, the swap point quotation is negative (euro quoted at discount against the foreign currency).

21. The Governing Council of the ECB will decide whether, under exceptional circumstances, fine-tuning bilateral operations may also be executed by the ECB itself.

22. Such a situation might occur, for example, if institutions outside the range of counterparties eligible for access to the marginal lending facility were to be granted access to intraday credit or if a counterparty has been suspended or excluded from access to the marginal lending facility (see Section 2.1).

ECB - European Central Bank

Type of operation	Normal trade day (T)
Main refinancing operations	Each Tuesday
Longer-term refinancing operations	The first Wednesday of each maintenance period (if minimum reserves are applied); or The first Wednesday of each month (if no minimum reserves are applied)

Monetary policy instrument	Settlement date for operations based on standard tenders	Settlement date for operations based on quick tenders or bilateral procedures
Reverse transactions	T+1^b)	T
Outright transactions	-	According to market convention for underlying assets
Issuance of debt certificates	T+1	-
Foreign exchange swaps	-	T, T+1 or T+2
Collection of fixed-term deposits	-	T

Notes to the table:
a)	In the table, T refers to the trade day. The settlement date connotation refers to business days only.
b)	If the normal settlement date for the main or the longer-term refinancing operations coincides with a bank holiday, the ECB may decide to apply a different settlement date, including same-day settlement. The settlement dates for the main and the longer-term refinancing operations are specified in advance in the ESCB's tender operations calendar (see Section 5.1.2).

12.	For the longer-term refinancing operations, the ECB may decide to adapt the features of the tender procedures in order to ensure that the ESCB does not, as a rule, send signals to the market and therefore normally acts as a rate taker.
13.	In fixed rate foreign exchange swap tenders, the ECB fixes the swap points of the operation and the counterparties offer the amount of currency kept as fixed that they wish to sell (and buy back) or buy (and sell back) at that rate.
14.	In variable rate foreign exchange swap tenders, the counterparties bid the amount of the currency kept as fixed and the swap point quotation at which they wish to enter into the operation.
15.	The wire services used by the ECB and the national central banks are specified in a list available from the ECB and the national central banks.
16.	In fixed rate foreign exchange swap operations, the amount of the currency kept fixed that the counterparty is willing to transact with the ESCB is to be stated.
17.	With regard to the issuance of ESCB debt certificates, the ECB may decide that bids are to be expressed in the form of a price rather than an interest rate. In this case, prices shall be quoted as a percentage of the nominal amount.
18.	In variable rate foreign exchange swap operations, the amount of the currency kept fixed that the counterparty is willing to transact with the ESCB and the respective swap point quotation are to be stated.
19.	Excessive bidding is considered to have taken place if the counterparty could not possibly have delivered sufficient underlying assets to cover its tender bid, when taking account of its holdings of securities and borrowing potential.
20.	Swap point quotations are listed in increasing order taking into account the sign of the quotation, which depends on the sign of the interest rate differential between the foreign currency and the euro. If, for the maturity of the swap operation, the foreign currency interest rate is higher than the corresponding interest rate for the euro, the swap point quotation is positive (euro quoted at premium against the foreign currency). Conversely, if the foreign currency interest rate is lower than the corresponding interest rate for the euro, the swap point quotation is negative (euro quoted at discount against the foreign currency).
21.	The Governing Council of the ECB will decide whether, under exceptional circumstances, fine-tuning bilateral operations may also be executed by the ECB itself.
22.	Such a situation might occur, for example, if institutions outside the range of counterparties eligible for access to the marginal lending facility were to be granted access to intraday credit or if a counterparty has been suspended or excluded from access to the marginal lending facility (see Section 2.1).