Annual Report 2018 Annual Report

ANNUAL REPORT 2018 ANNUAL REPORT

EBA CLEARING 2 018

Practitioners Creating Pan-European Payment Infrastructures Main River walkway with Frankfurt skyline in the back Main River walkway with Frankfurt skyline in the back de Triomphe Arc of La Défense in Paris from Cover: View ANNUAL REPORT 2018

Infrastructure systems like plumbing, electrical wiring, gas pipe- Practitioners Creating Pan-European lines or the metro are often invisible to those using them. But all Payment Infrastructures visible architecture relies on this invisible fabric to serve the people it has been built for. It is the underlying infrastructure that turns our buildings and cities into places where we can live and work.

This report gives visibility to some of the people behind our infrastructure. Our thanks go to the members of the Board, the EURO1 Business Committee and the Operations and Technical Group – for contributing to this report, but most importantly for ensuring our infrastructure is user-driven and fi t for purpose. EBA CLEARING Annual Report 2018 Panorama view of the city as seen from the roof of the Milan Cathedral 4 104 Index 44 Operations 42 38 32 28 26 20 18 Introduction OurServices 18 OUTLOOKFOR2019 IN2018 AND 16 THE 12 Chairman’s Statement andStrategicAims 8 TheCompany’s Mission 6 ANNUAL REPORT 2018 SEDA STEP2 Card Clearing RT1 STEP2 STEP1 EURO1 CEO’

COMPANY’S ACTIVITIES s Statement 48 StatutoryAccounts FinancialSituation: 82 Subsidiary 81 of PaymentSystems Oversightofthe 76 CorporateGovernance 60 InternalAudit 59 RiskManagement 56 Compliance Legal,Regulatoryand PayInitiative 50 EBA CLEARING’ EBA CLEARING’s EBA CLEARING PRETA s Requestto

EBA CLEARING Annual Report 2018 5 104 Index in ListofDirect Participants 3: Appendix 97 in ListofParticipants 2: Appendix 93 Shareholders ListofEBACLEARING 1: Appendix 92 90 APPENDICES STEP2-T EURO1/STEP1

AnnualAccountsfor2018 101 6:Appendix inRT1 ListofDirect Participants 5: Appendix 100 inSTEP2CC ListofDirect Participants 4: Appendix 100 EBA CLEARING Annual Report 2018 6 104 Mission and Strategic Aims E-U-R-O-P-A A P O R U E gility an-European penness tostakeholders’needs obustness ser-driven xcellence

EBA CLEARING Annual Report 2018 7 104 Mission and Strategic Aims ture solutions,thereby ensuring country-neutral approach forthedevelopmentanddeliveryofinfrastruc- efficient markets;itiscommittedtodischarging these responsibilities. recognises itsrole insupporting financialstabilityandpromoting fairand compliance withregulatory andoversight requirements. EBACLEARING are fitforpurposeandefficient,withaspecial focusonsafetyandensuring EBA CLEARINGisguidedbytheobjectivetooffer itsuserssolutionsthat seeking profit orshareholder valuemaximisation.Inpursuingitsmission, EBA CLEARINGaimstoallowcostoptimisationforitsusers,andisnot Our objectives The strategicaimsoftheCompanyare toensure a with userrequirements. the pan-European paymentsindustry, to supportitsusers’needsinline EBA CLEARING’s mission is to deliver marketinfrastructure solutions for Our mission Strategic Aims Mission and The Company’s holders’ infrastructure solutions, thereby demonstrating its ery of our services.EBACLEARINGwillmaintainitstrackrecord oftimelydeliv- vider. user-driven needs andagilityinitsrole asmarketinfrastructure solutionspro- solutionsresponding toevolvingandnewdemandsfor excellence and robustness openness openness pan-European indelivering to stake- and

EBA CLEARING Annual Report 2018 8 104 Chairman’s Statement needs inaveryreliablemanner. user communityinmeetingboth these supplies thebackbonesupporting itslarge CLEARING infrastructure systems,EBA As a provider ofpan-Europeanpayment instant andintradayliquidity. needfor asthe payment instrumentsaswell needforfit-for-purpose the challenge: digital are facingatwofold transformation digital marketplayersembracing Banks andother

EBA CLEARING Annual Report 2018 9 104 Chairman’s Statement to dosointhe future. Company has takenanumberofsteps toensure that it willalsocontinue meeting both these needs in a veryreliable manner. In the past year, the CLEARING suppliesthebackbonesupporting itslarge user communityin As aprovider of pan-European paymentinfrastructure systems,EBA have tobeaddressed notonlyforonenationalmarketbutacross Europe. need forinstantandintradayliquidity. Andmore oftenthannot,theseneeds lenge: theneedforfit-for-purpose digitalpaymentinstrumentsaswellthe system shapedbyPSD2andOpenBanking,theyare facing atwofoldchal- transformation anddevelopingnewbusinessmodels fortheemerging eco- As European banksandothermarketplayersare embracingthisdigital from alltheirserviceproviders, including theirbanks. new normalandare expectingconvenient, tailor-made andsafesolutions ance. Consumers and corporates alike are embracing digitalisation as the board ‘digitalnative’paymentinstrumentswithapotentialforwideaccept- driven byglobalplayershasdemonstratedthatmerchants are eagertoon- In theEuropean paymentsspace,thetake-off ofmobilepaymentsolutions in thefinancialsector. tomers, which contributes tothe digitalisation ofKYCand other processes identification basedon theeIDASRegulation as avalid way toidentify cus - the newAML5Directive. Inforce sinceJuly2018,itrecognises electronic These markettrends are furtherboostedbyregulatory changes,suchas tional butalsoprivateinvestors. financing instruments,thereby broadening theaccesstocapitalforinstitu- been pioneering solutions enabling end-to-end digital issuance of debt trade.Andinthecapitalmarketspace,differentinternational playershave have ledtotheset-upoffullydigitalisedplatformsornetworkssupport In tradeandsupplychainfinance,forexample, recent industryinitiatives business modelsandexpectations. transparency and24/7real-time availabilitytomeetevolvingcorporate industry-wide efforts todeliverimproved customerexperience,increased spread beyondthepaymentsarea. Thesedevelopmentswere fuelledby ogy movedbeyondtheproof-of-concept phaseand,inmanycases,also talisation made great progress. At the same time, the use of new technol- In 2018,thetransformationofEuropean bankingindustrythrough digi- Statement Chairman’s

EBA CLEARING Annual Report 2018 10 104 Chairman’s Statement for rich data transfer through new formats, such as means evolvingtheirrobust settlementfunctionwhileproviding newrails possible, furtherstrengthening theirvaluepropositions. Inparticular, this systems ofEBACLEARINGfuture-proof whilemaintainingand,where Another major focus over the past year was put on making the established iteration andthere ismore tocome. needs ofitsgrowing usercommunity–RT1 cess factoristhattheCompanykeepsevolvingsystemtosatisfy thanks toitsdifferent accessandparticipationoptions.Anadditionalsuc- platform. of the European payments industry a highly agile real-time infrastructure With thetimelylaunchofRT1 in2017,EBA CLEARING putatthedisposal the serving onthe Board. The Board has endorsed the resulting proposal of side Director tocomplementthe skillsofthe15independentdirectors ance Committee(NGC)haspavedthewayfor recruitment ofoneOut- the Board composition ofa ance withthenewrequirement oftheRevisedSIPSRegulationregarding In linewiththeapproach agreed attheSHM2018forestablishingcompli - tation processes around thefuture evolvementofthesesystems. tivities inQ12018andhavehelpedtoeffectively conducttheuserconsul- newly created EURO1andSTEP2BusinessCommitteestookuptheirac - reflect thebalancebetweenSIPSoperatedby EBA CLEARING.The andusersayarrangementsforEURO1STEP2 tobetter governance decision attheShareholders Meeting(SHM) 2017tointroduce identical level following the 2018 alsosawimportantchangeskickinatgovernance prove theirintra-dayliquiditymanagement. tools enablingcross-service viewsandactivities,sotheycanfurtherim- the nextfewyears.Acentralaimofthisstrategyistoprovide userswith ny hasplacedcross-service alignmentatthetopofitsstrategicagendafor changeovers, suchas convergence of messagingstandards, the Compa- In order tooptimallysupportusersinleveragingthebenefitsofthese related risks. tation withtherespective user communitiestominimise user impactand continuous gross settlementforSTEP2havebeenagreed incloseconsul- maps andtimelinesfortheEURO1ISOmigrationintroduction of their valuepropositions.their and, where strengthening possible,further EBA CLEARINGfuture-proof whilemaintaining systems of established on makingthe pastyearwasput A majorfocusoverthe NGC forsubmission totheSHM2019. RT1 hasbeenverysuccessfulatbuildinguppan-European reach, SIPS operator,- theNominationandGovern hasjustgonethrough itsfourth ISO 20022. The road -

EBA CLEARING Annual Report 2018 11 104 Chairman’s Statement At EBACLEARING,weare eagertolookintothis. account-basedpaymentinstruments. and other infrastructure toleverageinstantpayments solution, RequesttoPay for instanceausecase-agnostic PSPs mayrequire infrastructure additional solutions, Petia Niederländer 2019 andbeyond. We lookforward withallofyouin tocontinuing thissuccessfuljourney efforts aswell ourOverseersforthecontinuedconstructivedialogue. staff ofthisCompany andourtechnologypartnersfortheirdedication and commitment andsupport.Iwouldalsoliketothank themanagementand our committees,expertgroups andtaskforces overthepastyearfortheir leagues ontheBoard andalltheprofessionals whohaveparticipatedin I takehisopportunitytothankallourshareholders andusers,mycol- ued fruitfulexchangewithourusercommunity. as partoftheCompany’s ongoingdevelopmentandbasedonthecontin - At other account-basedpaymentinstruments. implementation ofthis‘missinglink’forleveraginginstantpaymentsand structure layerforRequesttoPay, inorder toenablethepan-European additional infrastructure solutions,forinstanceausecase-agnosticinfra- rely onseamlessend-to-endreal-time processes. Theymayalsorequire opportunities fortheircustomers,paymentserviceproviders willneedto services layer linked to payment and accounts. In order to unlock these global market,includingnewopportunitiestoexplore more deeplythe are expectedtofurtheropenuptheinnovationspaceinEuropean and Looking forward, thecombinationofreal-time paymentsandopenbanking cost-effective day-to-dayoperationofitspaymentsystems. stable and compliant processing environment for the reliable, efficient and cordance withEBACLEARING’s firstandforemost objectivetomaintain a part ofthestandingitemsonagendaBoard. Thisisalsoinac- for paymentinfrastructures andtheirusers,thetopicofcybersecurityis rity standards inlinewithbestindustrypracticesisofparticularimportance Since theconstantevolvementofstate-of-the-artsecurityandcybersecu- requirements. its systemsinthecontextofassessmentscompliancewithoversight environments, and maintained a continuous dialogue with theOverseers of systemsandtheirunderlyingITarchitecture,its hasstayedontopofitsrisk period underreport continuedtoattachprimeimportancetheresilience of As partofitsresponsibilities asaSIPSoperator, EBACLEARINGhasinthe EBA CLEARING,weare eagertolookintothisandotheropportunities

EBA CLEARING Annual Report 2018 12 104 CEO’s statement platform, which hitarecord peakof156million transactionsinApril2018. continued volume growth aswellasolidand robust performance ofthe the pre-eminent platform forprocessing SEPA transactions.We haveseen ofSEPAReaching allcorners forretail payments, STEP2continuestobe closed usergroup basis. SWIFTNet connectivity, TIPSrouting andvalue-addedfunctionalityon a fourth iterationafteronly18months,havingadded, amongotherfeatures, ated withoutanyinterruption,24x7365,since itslaunch.Itisin this reach shouldincrease toover90%in2019and 2020.RT1 Single Euro PaymentsArea are already addressable viathesystemand reaching a total of 20 million transactions in April 2019. Over 60% of the passing the10-million-transactionmilestoneinearly January2019and instant payments,RT1 The newkidontheblockandleadingpan-European infrastructure for Altogether, theyroutinely processed wellover50millionpaymentsperday. vices were operating reliably and smoothly during the period under report. efficient day-to-dayservicedelivery. Iampleasedto report thatallourser As inprevious years, ourprimefocusfor2018wasput on resilient and to meetevolvingoversightrequirements. their value propositions for the new, digital,real-time reality and continue lying arrangements,sothattheyoptimallysupportourusersinenhancing how toadaptoursystemicallyimportantpaymentsystemsandtheunder eration withourusersand,insomecases,criticalserviceproviders – last butnotleast,wehavebeenheavilyengagedinassessing–co-op- stant payments,suchasapan-European RequesttoPaysolution.And, service. We havealsobeenexploringpotentialsupportingelementsforin- ofRT1 togetherwiththedevelopmentofnewfunctionalityfor ramp-up For ourconcrete context,thismeansthatwehavebeencoordinating the reinforcement of(cyber)securityandresilience. for more granulardata,(near)real-time liquiditysettlementandafurther In theinfrastructure arena, thischangehastranslatedintoanoverallpush pany’s servicesinthelightofsignificantindustrychange. reorientation andconsultationworktochartthefuture courseoftheCom- the dailyoperationsofourpan-European paymentsystemsandbymajor For Statement CEO’s EBA CLEARING,theyear2018wasmarkedbothbygreat stabilityin , rampedupnicelyinitsfirstyearofoperations, hasoper - - -

EBA CLEARING Annual Report 2018 13 104 CEO’s statement partners and our dedicated staffpartners andourdedicated members. technology holders andusers,ourlong-standing Sharesupported ourcourse:highlycommitted - year, strong tothe thanks have tailwindsthat through navigating fully past headwindsoverthe hasbeensuccess- CLEARING EBA transformation, isgoingthroughIn anindustrythat substantial EBA CLEARING Annual Report 2018 14 104 CEO’s statement smoothly during the periodunder report. duringthe smoothly our serviceswere reliably operating and Iampleasedtoreportservice delivery. all that was putonresilient andefficient day-to-day As inprevious years,ourprimefocusfor 2018 tures wascompletedinthefirst quarterofthisyear. Asinprevious years, Resilience Oversight Expectations(CROE) forfinancial marketinfrastruc- Our self-assessment against the relevant requirements of the cal serviceproviders oncyberresilience inparticular. Company has intensified itsactivitiesaswell asitsco-operationwith criti- and riskmanagementfunctionshavebeenfurther strengthened andthe processes inlinewithbestindustrypractices. Theoversightcompliance ITsystemsandcorporate EBA CLEARINGcontinuestoevolveitsinternal shareholders orbankcredit lines. choose tofinancesomecontinuinginvestmentsitself, without recourse to Regulation. 2018 tomeettheliquidityrequirements setforSIPSoperatorsbythe The Company’s financials remain robust. Cashlevelswere increased in and alsoallowrationalisationofsystemcomponents. system. Thechosendesignapproach willminimisedevelopmentcosts ticipants tokeepthecore liquidity-savingfeatures, whichdifferentiate the centralised liquiditymanagement.There wasconsensusamongthepar EBA CLEARINGServicestoalloweasyswitchingbetweensystemsanda service tothemaximumextentpossiblewithbothTARGET2 andother munity duringthesubsequentuserconsultation.Thisincludesaligning The future valueproposition was strongly supported by the EURO1 com- together withTARGET2, whichisscheduledfor2021. key principlesforEURO1asitreadies itselffortheISO20022migration, shops withtheEURO1Future PositioningWorking Group, hashingoutthe ble ataround 200,000perday. In2018,theCompanyranaseriesofwork- value payments, continues to perform well and volumes are relatively sta - EURO1, providing liquiditysavings,resilience andchoiceineuro large- the nextfewyears. as welltheoverallimplementationworkloadindustryisfacingover take sometimetocompletetheroll-out, giventhesizeofcommunity introduce newperspectivesfortheuseofsystem.Itwillundoubtedly ments ofourlarge usercommunitywithminimalimpactonliquidityand vised to determinehowbestadaptthesystemrequirements oftheRe- Last yearwasspentinintensedesigndiscussionsanduserconsultations SIPS Regulation.Thefuture settlementmodelwillmeettherequire- EBA CLEARINGisinapositionwhere theCompanycan ECB’s Cyber -

EBA CLEARING Annual Report 2018 15 104 CEO’s statement Hays Littlejohn ecosystem. with thesupportandforbenefitofouruserswiderpayments We lookforward and track record to continuing this successful journey remained firmlypositionedattheheartofEuropean payments. cover alotofground in2018andearly2019whileithas,atthesametime, Thanks to these tailwinds, the ture services. delivery ofefficientandcost-effective pan-European paymentinfrastruc- and beyond,whohavecometogethertoensure thetimelyandreliable EBA CLEARINGstaff consistsofpractitionersfromEurope allcorners Board, BusinessCommittee,ExpertandWorking Group members,the standing technologypartnersandourdedicatedstaff members.Likeour these tailwinds:ourhighlycommittedShareholders andusers,ourlong- course. Iwanttotakethisopportunitythankthekeysources of the pastyear, thankstothestrong tailwindsthathavesupportedour CLEARING has beensuccessfullynavigatingthrough headwindsover In anindustrythatisgoingthrough substantialtransformation, tests againstcyber-attacks inthefinancial industry. exercises inthecontextofTIBER-EU,newEurope-wide frameworkfor throughout theperiodunderreport. Preparations are ongoingfortesting numerous resilience andcrisismanagementexercises were conducted meet evolvingoversightrequirements. new, real-time digital, reality to andcontinue valuepropositionsin enhancingtheir forthe supportourusers optimally they ments, sothat underlyingarrange- to adaptourSIPSandthe We havebeenheavilyengagedinassessinghow EBA CLEARING Company has managed to EBA

EBA CLEARING Annual Report 2018 The Kunsträdgården in downtown Stockholm is one of 16 104 The Company’s Activities the oldest parks in the Swedish capital. The outlook for2019The outlook isincludedforinformation. 31 December2018. The periodunderreport is1 January 2018 – for2019Outlook in2018Activities and The Company’s

EBA CLEARING Annual Report 2018 17 104 The Company’s Activities EBA CLEARING Annual Report 2018 18 104 Services: Introduction Total RT1 STEP2 CC STEP2 STEP2 STEP2 SCT STEP1 ** No year-on-year comparisonprovided sinceRT1 ** Roundedfi* gures, valuesinEUR all EURO1 Service EBA CLEARING ofannualvolumesandvaluesin2017/2018 Evolution EBA CLEARINGPaymentServices:

.7n122n .1n ,1b +3.71%+5.21% 1,318bn 6.81bn 1,252bn 6.57bn SDD B2B SDD Core Introduction Our Services views andactivities atuserlevel. proposition ofeachserviceand, atthesametime,facilitate cross-service RT1 ties onfuture changestobebrought totheEURO1/STEP1,STEP2and form, 2018wasshapedby extensiveexchangeswiththeusercommuni- While 2017hadbeenmarked bythelaunchofanewinfrastructure plat- represents anaveragedailyvolumeofnearly54million transactions. aged thesettlementof13.74billiontransactionsacross all services.This by 3.14%duringthesameperiod.Throughout 2018,EBACLEARINGman- growth of 6.68% compared to 2017. The total transaction value increased tail paymentsystemintheperiodunderreport, resulting inanoverallvolume The Companywitnessedanotableincrease oftransactionvolumesinitsre- payment infrastructure servicestoalarge European usercommunity. basis andinaccordance withhighestlevelsofresilience, best-of-breed Throughout theperiodunderreport, EBACLEARINGdelivered, onadaily 28 n 565n 37b 6,6b +.8 +3.14% +6.68% 67,665bn 13.74bn 65,605bn 12.88 bn oue Vle Vlm* Vle oue Value Volume Value* Volume* Value* Volume*

52m 2b 63m 759bn N/A** N/A** 6bn 9.73m 90m 86.39m 0.144m 723bn 85.21m 05 5,9b 5.8 51,579bn 50.08m 50,699bn 50.54 m .3n 257n 46b 13,524bn 4.66bn 12,507bn 4.43bn .4n 0b .3n 122bn 2.13bn 107bn 1.74bn .2 37n 24m 357bn 2.46m 317bn 2.52m Services.Thecommonobjective wastofurtherstrengthen thevalue 2017 only went live inNovember2017 onlywentlive 2018 +22.09% +14.60% +1.39% +5.04% +5.28% +8.14% –2.15% +12.60% –2.15% – 0.92% +1.74% Evolution

EBA CLEARING Annual Report 2018 19 104 Services: Introduction payment ramp-up. velopment of thesystem to optimallysupport the pan-European instant of therevised SIPSRegulation.AndforRT1 different optionsfortheevolutionofSTEP2-T payment systems.ForSTEP2,theusercommunitywasconsultedon the background oftheindustry-wideISO20022migrationlarge-value user inputandagree onawayforward forthefuture positioningagainst further multipliedthesetouchpoints.TheaimforEURO1wastogather During theconsultationsheldinfi rsthalfoftheyear, EBACLEARING groups, more than30usercommunitymeetingstookplacein15countries. lished BusinessCommitteesandthedifferent expertgroups andworking users in2018.Inadditiontotheconsultationswithtwonewlyestab- To this effect, the Company furtherintensifi edthe dialogue with itsservice , thefocuswasputonde- settlement modelinlight

EBA CLEARING Annual Report 2018 20 104 EURO1 Service EURO1 Service EURO1 of managementandmonitoring tasksacross different services. is alsoaimedatoptimallysupportingtheEURO1usersintheirintegration value paymentsystemstotheISO20022standard. Theworkprogramme the evolutionofTARGET2 inthecontextofmigrationlarge- of theresulting workprogramme wasensuringmaximalalignmentwith charted thefuture coursefortheservice 2020andbeyond.Akeyfocus positioning ofEURO1conductedinthespring2018, EBA CLEARING Based ontheoutcomeofacomprehensive userconsultationonthefuture transactions thatallowsparticipantstooptimiseliquidity efficiency. silient andcost-effective RTGS-equivalent systemforsingleeuro payment In 2018,EURO1continuedtoserveitsparticipantsreliably, offering are- 1 Overview

EBA CLEARING Annual Report 2018 21 104 EURO1 Service the is scheduledforNovember2021.Afirstversionof thedocumentationfor specifications as well as on implementation timelines. The migration date It furtherforesees alignmentwithTARGET2 bothintermsofinterface for fullintra-dayswitchabilitybetweenthetwopaymentsystems. as wellandwillmakeEURO1networkagnostic. rent Y-copy tothemore genericV-shape, whichwillbeusedbyTARGET2 plans toadaptthenetworktopologyforEURO1 System,from thecur In parallelwiththemigrationtoISO20022standard, theCompany for feedbackinApril2019. messaging to the gramme isdesignedtomigrateEURO1from the current FIN-based programme inOctober2018torespond totheserequirements. Thepro- The outcomeoftheuserconsultationresulted inthestartofawork TARGET2 aswellwiththeSTEP2andRT1 service supporttoolsandinevolvingtheclosealignmentwith the sametime,participantsexpressed astrong interest inmore cross- taining thecore characteristicsandcomponentsoftheEURO1System.At faction withthekeybenefitsofserviceandabroad supportformain- back provided bytheEURO1Participantsindicatedahighlevelofsatis- Blueprint forEURO1’s Future Proposition for 2020 andBeyond.Thefeed- In thespringof2018,EURO1usercommunitywasconsultedona migration 20022 and ISO 3 der toensure theircontinuedparticipationinthesystem. from theUKhadtransferred theirparticipationtootherEUlocationsinor the European Union.BytheendofMarch 2019,allEURO1Participants EURO1-related planninginconnectionwiththeUK’s preparations toleave logue withserviceparticipantslocatedintheUnitedKingdom(UK)ontheir Throughout 2018andearly2019,EBACLEARINGmaintainedaclosedia- stands at47asonebanklefttheserviceinApril2019. Service participationwentfrom 51in2017to482018andcurrently remained closeto40%. age dailytransactionvalueincreased by1.7%.TheEURO1marketshare EURO1 witnessedaslightdecrease of1%,butatthesametime,aver During theperiodunderreport, thetransactionvolumesprocessed in 2 Work programme for EURO1 future positioning Work programme forEURO1 ofEURO1 Evolution ISO 20022migrationproject wasshared with the ISO 20022 standard and to align volumes,valuesandparticipation Services. EURO1 with EURO1 Participants TARGET2 - - -

EBA CLEARING Annual Report 2018 22 104 EURO1 Service finality inahighlyliquidity-efficient,cost-effective and resilientway. benefits asidentifiedbyitsusers: processing paymentswithimmediate ongoing workprogramme, sothatEURO1 willcontinuetoprovide thekey The core functionalityofthesystem,however, willnotbeaffected bythe activities andrelated intra-dayliquiditypositions. for userstogetanintegratedviewacross alltheirEBACLEARINGservice pants bothinEURO1andRT1 board demoproviding anoverviewoftheliquidityandpositionpartici- work programme. InJune2018,theCompanypresented aliquiditydash- arations in2018fortheroll-out ofcross-service supporttoolsaspartofits In linewithparticipantrequirements, EBACLEARINGfurtherstartedprep - . Theaimofsuchtoolsistomakeiteasier

EBA CLEARING Annual Report 2018 23 104 EURO1 Service STEP2 insubsequentreleases. EURO1 and is planned to integrate cross-service views covering for thebanks.Thedashboard willinitially compriseinformationrelated to board, whichwillprovide additionalintra-dayliquidity monitoringfacilities The 2019release willfurtherincludetheintroduction ofaliquiditydash- limited impactonserviceusers. changes atthelevelofparticipantworkstation.Therelease willhavea For 2019,arelease isplannedforNovember2019,whichwillinvolve users, therelease waslimitedintermsofscopeanduserimpact. October 2018.Asnofunctionalchangeshadbeenproposed bytheservice A combinedfunctionalandtechnicalannualrelease wasimplementedin 4 System developmentsin2018 and2019 RT1 and

EBA CLEARING Annual Report 2018 24 104 EURO1 Service EURO1 Service EURO1 resilience andchoice providing savings, liquidity for Euro payments The private-sectorLVPS STATUS: MARCH2019 KEY FACTS ANDFIGURES € 221.1 AVERAGE DAILY VALUE 198,054 AVERAGE DAILY VOLUME VOLUME OFPAYMENTS PROCESSED EVOLUTION OFAVERAGE DAILY 160,000 180,000 200,000 220,000 240,000 billion transactions 2016 2017 2018 Interface SystemAncillary in CUT-OFF TIME PROCESSING SETTLEMENT AT OPERATOR TECHNICAL SWIFT 1999 4 January LIVE DATE TARGET2 viathe ASI-4 2019

EBA CLEARING Annual Report 2018 25 104 EURO1 Service FUNCTION LEGAL BASIS System (SIPS) System(SIPS) Payment Important Systemically

payment system Large-value benefits of a multilateral system benefits ofamultilateral liquidity-saving the Combined with inrealtransaction time paymentfor eachindividual Providing finality immediate RTGS-equivalent netsystem applicable fully ECB SIPSRegulation ECBas bythe Identified Participants EURO1/STEP1 additional 12,000 participant 7,400 Close to REACH BICs reachable via BICs andcloseto

SPECIAL FACTS ANDFEATURES IN2018/2019 conductedinspring2018 User consultation onEURO1 Userconsultation Work programme forfuture and beyond service proposition for2020 migration kickedoffmigration 20022 andISO positioning in October2018 Sub-Participants 46 Participants 47 PARTICIPATION

EBA CLEARING Annual Report 2018 26 104 STEP1 Service STEP1 Service STEP1 sized banksinparticular. which illustratesthecontinued valueofSTEP1forsmallerandmedium- ues continued to increase, despite decrease in the number of participants, The Conversely, theserviceattractedanewparticipantin2018. riod under report, industry consolidation in Europe is the mainreason. There wasadecrease inthenumberofSTEP1Participantsduringpe- payment banksoperatinginEurope. ment solutionfortheexchangeofnon-SEPA euro transactionswithallkey and runningcostsaswellitswidereach, STEP1provides alow-invest- resilient singleeuro paymentprocessing platform.Withitslimitedjoining The forsingleeuro solution paymentprocessingA turn-key STEP1 transactionvolumeremained stableand thetransactionval- STEP1 Serviceoffers adirect andcost-effective accesstoahighly

EBA CLEARING Annual Report 2018 27 104 STEP1 Service STEP1 Service STEP1 payment processing forsingleeuroA turn-keysolution Sub-Participants 4 Participants 40 PARTICIPATION STATUS: MARCH2019 KEY FACTS ANDFIGURES Participants EURO1/STEP1 additional 12,000 participant 7,400 Close to REACH BICs reachable via BICs andcloseto VOLUME OFPAYMENTS PROCESSED EVOLUTION OFAVERAGE DAILY 6,000 8,000 10,000 12,000 14,000 € 1.4 € AVERAGE DAILY VALUE transactions 9,676 AVERAGE DAILY VOLUME 2016 billion 2017 2018 SWIFT OPERATOR TECHNICAL and smaller banks and smaller used bymedium-sized mainlytransactions, service forcommercial Single euro payment FUNCTION for Banks Settlement EURO1 Banksactas SETTLEMENT 21 November2000 LIVE DATE STEP1 Participants 2019 EBA CLEARING Annual Report 2018 28 104 STEP2 Services STEP2 Services reached on3April2018with over 156milliontransactions. new all-time peak ofvolumesprocessed intheSTEP2 SEPA Services was 45.4 milliontransactions processed perdayonaverage.Furthermore, a increase in2018 compared to2017,goingupfrom 43.6millionto Daily averagevolumesin theSTEP2SEPA Serviceswitnessed astable ofSTEP2volumesandparticipation 2 Evolution volumes andparticipantnumbersin2018early 2019. across Europe wasfurtherstrengthened through thecontinuedgrowth in portant infrastructure foranumberofcommunities andindividualbanks manner during the period under report. Its position as a strategically im- and cross-border euro retail paymentsin a reliable anddisruption-free Transfers andDirect Debitsandhandledveryhighvolumesofdomestic vided full reach tothe European bankingcommunity foritsSEPA Credit ofeuroA cornerstone retail paymentprocessing, theSTEP2Systempro- 1 Overview

EBA CLEARING Annual Report 2018 29 104 STEP2 Services setting outthedetailsofproposed solutionwaskickedoff inApril2019. model, startinginNovember2020.Auserconsultation ontheblueprint opted foraphasedmigrationoftheusercommunity tothenewsettlement stantial mandatorypaymentsindustryprojects, theEBACLEARING Board Taking intoaccounttheparticipants’ongoingengagementinothersub - settlement modelfortheSTEP2SEPA Services. results indicatedapreference fortheintroduction ofacontinuousgross ture evolutionoftheSTEP2settlementinsecondquarter2018.The EBA CLEARINGconductedacomprehensive userconsultationonthefu- In lightof new requirements stipulatedbytherevised SIPSRegulation, spective userconsultationonthesechanges. the routing tables,inaccordance withuserneedsasexpressed inthere- duce anumberofimprovements tothedirect participantworkstationand the related AdditionalOptionalService(AOS2).Therelease willalsointro- the implementationofextendedremittance informationinreplacement of for 2019willincludeanewsetofinquiriesandinvestigationsSCT As detailedinthenewEPCSEPA SchemeRulebooks,theSTEP2release 7:00 introduction ofanadditionaldebitnotificationfilewindowforSDDCore at cussed onEPCSCTSchemeRulebook-related updatesaswellonthe agement. Afunctionalrelease putinplaceNovember2018mostlyfo- in April2018order tofurthersupportparticipantsintheirliquidityman- CLEARING implementednewoptionalreports through atechnicalrelease In linewiththeresults oftheannualSTEP2userconsultation,EBA average transactionpricescontinuedin2018. STEP2 usersintermsofcostsavings.Asaresult, thetrend ofdeclining STEP2 andallowedEBACLEARINGtopassonthesebenefitsthe The continued volume growth further increased the economies of scale in 3 Systemdevelopmentsin2018 across theSingleEuro PaymentsArea. continued toextendfullreachability toover4,900financialinstitutions SDD Business-to-Business(B2B)Service.TheSTEP2SEPA Services the joining the ing apositiveevolutionthroughout 2018andearly2019,with11banks The numberofdirect participantsintheSTEP2SEPA Serviceskeptsee- STEP2 SDDCore ServiceandsixbanksconnectingtotheSTEP2 CET . STEP2 SEPA Credit Transfer andbeyond (SCT) Service, nine banks joining

EBA CLEARING Annual Report 2018 30 104 STEP2 Services STEP2 Services 0 million 5 million 10 million 15 million 20 million 25 million 30 million 35 million 40 million 45 million 50 million VOLUME OFPAYMENTS PROCESSED EVOLUTION OFAVERAGE DAILY for retail payments cornersofSEPAReaching all STATUS: MARCH2019 KEY FACTS ANDFIGURES 2016 2017 . billion € 2.9 SDD B2B billion € 5 SDD CORE billion € 54.4 SCT AVERAGE DAILY VALUE 2018 SCT STEP2 SDD CORE STEP2 SDD B2B STEP2 2019 SIA OPERATOR TECHNICAL 2 November2009 SDD Core andSDDB2B 28 January2008 SCT LIVE DATES Interface TARGET2 System Ancillary RTGS accountsviathe Direct TARGET2 Participants’ arePositions on settled window.ed inasettlement paymentsinclud- basis ofall onagrossous settlement ment isbasedonsimultane- STEP2-T’s designforsettle- SETTLEMENT 340,915 SDD B2B 25.4 SDD CORE 18 SCT AVERAGE DAILY VOLUME

(ASI) transactions million transactions transactions million

EBA CLEARING Annual Report 2018 31 104 STEP2 Services Scheme Rulebooks adhered respective tothe EPC fiall that have nancialinstitutions offering pan-European full reach to Business-to-Business Direct Debits Credit Transfers andSEPA Core and ACH Servicesprocessing SEPA FUNCTION LEGAL BASIS

(EPC) Europeanthe PaymentsCouncil of Guidelines Implementation Scheme Rulebooksand respective the with Compliant ECB SIPSRegulation asaSIPSundertheIdentified interoperable CSMs 15other with The Reachable BICs Over 3,300 SDD B2B Reachable BICs Over 3,900 SDD Core Reachable BICs Over 4,900 SCT REACH STEP2 platformisfully

SDDB2B:> 1 million transactions settled on2January2018 settled on3April2018, respectively settled on3April2018 settled New volumepeaks: SPECIAL FACTS ANDFEATURES IN2018/2019 SCT: 41.7 transactions million STEP2SEPA platform: SDDCore: > 156 transactions million 118.8 direct million debits 98 SDD B2B 113 SDD CORE 153 SCT PARTICIPATION Participants Direct Participants Direct Participants Direct EBA CLEARING Annual Report 2018 32 104 RT1 Service RT1 Service RT1 well-functioning instantpaymentecosystem. pany continuedtocontributeindustryinitiatives geared atbuildinga ity andsupporttoolsinlinewithevolvinguserneeds. Inaddition,theCom- the periodunderreport aswellonfurtherdevelopingsystemfunctional- on orchestrating themajoronboarding exercise totheRT1 up intermsofparticipantsandvolumes.EBACLEARINGputakeyfocus cil, Instant Card Transfer (SCTInst)SchemeoftheEuropean PaymentsCoun- Following itsgo-liveon21November2017,thelaunchdateofSEPA 1 Overview RT1 sawasuccessfulfirstyearofoperationswithsubstantialramp- platformduring

EBA CLEARING Annual Report 2018 33 104 RT1 Service ment serviceproviders. July 2018thisfigure hadnearly doubled toover1,000addressable pay- ble building uppan-European reach: byMarch 2018,atotalof576addressa- In itsfirstyearofoperations,RT1 transactions perweek. 2019, averageprocessing volumeshad increased toaround 1 million actions were processed inlessthan3seconds.By thesecondquarterof billion total value since the launch of the system. Over 99% of these trans- On 3January2019,RT1 on 13April2018withatotaltransactionvalueofaround EUR635million. action markon19February2018andthe1-million-transactionmilestone 50 millioninthelastquarterof2018.Thesystempassed500,000-trans- 100,000 transactionsperdayonaverageandadailyvalueofEUR from aninitial5,000transactionsperdayshortlyafterthelaunchtoover RT1 volumesandparticipation ofRT1 2 Evolution PSPs from 11countrieswere reachable through thesystem,whileby witnessedasignificantvolumeramp-upthroughout 2018,moving hitthe10-million-transactionmarkwithaEUR6 alsomadeconsiderableprogress in

EBA CLEARING Annual Report 2018 34 104 RT1 Service and functionalityenablingparticipantstouseRT1 in additiontotheexistingSIANetandEBICSbasedconnectivityoptions, Inst Scheme Rulebook updates as well as The November2018release introduced changesrelated totheEPCSCT liquidity. participants withmore flexibilityandeaseinmanagingmonitoring during theramp-upphase.TheJune2018release focussedonproviding tion withtheRT1 RT1 3 Systemdevelopmentsin2018 participants. Efforts havecontinuedin2019tofurthersupporttheonboarding ofnew of theaccount-servicingPSPsadheringtoEPCSCTInstScheme. year, theevolvingRT1 through the35participantsconnectedtoplatform.Throughout the vice providers from 12European countries,whichwere addressable By theendof2018,RT1 exchange informationonparticipants’unavailability. several participantworkstationimprovements andanewmechanismto Rulebook andcoverenhancementstothecontrolled go-liveprocedure, 2019 release willincludechangesstemmingfrom theSCTInstScheme ing theday-to-dayoperationsandsupportprocesses. TheNovember place inthesecondquarterof2019willfurtherimprove thetoolssupport- uled twoRT1 during theinstantpaymentramp-up,EBACLEARINGhasagainsched- To ensure thenecessaryagilityforfurtherdevelopmentofsystem receiving transactionssettlinginRT1 functionality allowsparticipantstohaveasingleinterfaceforsendingand ty’ intheTARGET systemfunctionalitywasfurtherenrichedin2018closeconsulta- releases forimplementationin2019.Therelease tobeputin userstooptimallyandquicklymeettheirevolvingneeds Instant PaymentSettlement(TIPS)Service.Thelatter reach corresponded toacoverageofclose100% hadexpandedreach toover2,300paymentser orinTIPS. and2019 SWIFTNet Instant connectivity, astheir‘InstructingPar - -

EBA CLEARING Annual Report 2018 35 104 RT1 Service for real-time payments)andtheGlobalRealTime/InstantPaymentGroup. under theISO20022standardisation bodyfocussingonISOmessages contributed to otherindustrybodiesand fora, suchas the RTPG (the group advisory group onmarketinfrastructures forpayments.TheCompanyalso the ment matterswithotherindustryplayersandstakeholders,participatingin EBA CLEARINGhasbeenfosteringanopenexchangeonreal-time pay- toindustrydebates 4 Contribution TIPS ContactGroup and,asanobserver, intheAMI-Pay, ECB the’s EBA CLEARING Annual Report 2018 36 104 RT1 Service RT1 for instantpayments pan-EuropeanThe leading infrastructure STATUS: MARCH2019 KEY FACTS ANDFIGURES 60.8 € AVERAGE DAILY VALUE 116,822 AVERAGE DAILY VOLUME Service PSPS BYCOUNTRY OVERVIEW OFREACHABLE million transactions 1 7 9 2 8 2 2 1 7 30 25 SIA OPERATOR TECHNICAL bank funds. pant isfundedincentral ofeachpartici- The position each paymenttransaction. uponreleaseis adjusted of system,which inthe position maintainaParticipants instant fithe system. in nality real with andsettled time Transactions are processed in FINALITY 2017 21 November LIVE DATE 459 4 5 1 3

EBA CLEARING Annual Report 2018 37 104 RT1 Service FUNCTION the the service provider to (AS-PSP) adhering open toanyaccount-servicingpayment payment system real-time 24/7/365 Pan-European LEGAL BASIS Fully protected Fully Settlement bythe SEPA the with compliance Full EPC SCTInstScheme validation Payments Council(EPC),including European ofthe Guidelines Rulebook andImplementation Instant Credit Transfer (SCTInst) Finality DirectiveFinality to the service to the connected 37participants the which are addressable via from 13 countries, EU service providers over 2,300payment RT1 REACH extendsreach to

processed inApril2019 inNovember2018 in SPECIAL FACTS ANDFEATURES IN2018/2019 Over 99% of transactions oftransactions Over99% Newdailyaveragerecord: party instructing TIPS instantintroduced SWIFTNet 3 seconds processed lessthan within 133,634 transactions launched forRT1 functionality as third option connectivity Q4 2018 Participants 37 PARTICIPATION EBA CLEARING Annual Report 2018 38 104 STEP2 Card Clearing Service Clearing Service STEP2 Card growth of28.86%compared to December 2017. the dailyaverageevenreached 11.01million transactions,representing a card transactionsundertheGermangirocard scheme.InDecember2018, during 2018.STEP2CCiscurrently usedbysevenparticipantsfor debit The servicehandledonaverageover8.36million transactionsperday leveraging Eurozone, whoseaimistostandardise card clearingacross Europe by 25 majorplayersinthecard industryfrom 20countriesinandbeyondthe Framework definedbytheBerlinGroup. TheBerlinGroup isagroup of authorised card-based transactions based on the Service provided areliable servicefortheclearingandsettlementofpre- Throughout theperiodunderreport, theSTEP2Card Clearing(STEP2CC) SEPA infrastructure. SEPA Card Clearing

EBA CLEARING Annual Report 2018 39 104 STEP2 Card Clearing Service System developmentsin2018 STEP2 SEPA Services. station andtherouting tables,inlinewiththechangesplannedfor the The 2019release consists ofimprovements to the direct participantwork perform intradayconnectivityswitchesinSTEP2CC . duced thepossibilityforparticipantstousemultiple networkchannelsand align theservicewithSTEP2SEPA Services,EBACLEARINGintro- In 2018,asrequested bytheSTEP2CCusercommunityandinorder to onboarding ofcard-initiated paymentsfrom othercommunitiesinEurope. interfaces theyputinplaceforSEPA, makeSTEP2CCwell-suitedforthe gies from thereuse oftheinterbankinfrastructure andbank-internal Its pan-European design,and the fact that it enables users to reap syner and2019 -

EBA CLEARING Annual Report 2018 40 104 STEP2 Card Clearing Service Clearing Service STEP2 Card card-initiated payments system forsettling 20022-compliant An ISO STATUS: MARCH2019 KEY FACTS ANDFIGURES transactions million 9 VOLUME AVERAGE DAILY 486.1 € AVERAGE DAILY VALUE 4 million 6 million 8 million 10 million 12 million VOLUME OFPAYMENTS PROCESSED EVOLUTION OFAVERAGE DAILY million 2016 2017 SIA 2015 April 14 LIVE DATE Interface System Ancillary via the inTARGET2settled ModuleareNetting Multilateral the providedPositions by SETTLEMENT OPERATOR TECHNICAL 2018 (ASI) 2019

EBA CLEARING Annual Report 2018 41 104 STEP2 Card Clearing Service between Direct Participants capable ofrouting card clearingmessages mechanism direct debitcollection messages basedona for pre-authorised card cards industryfrom 20European countries Group, agroup ofmajorplayersinthe BerlinFramework asdevelopedbythe SEPA the with Compliant Card Clearing LEGAL BASIS euro clearingservice High volume,commercial andretail FUNCTION Over 2,000ReachableBICs. REACH offered byDeutscheBundesbank. through interoperability SCCService the with inGermany transactions pre-authorised girocard reachFull clearingof forthe

settled on23April2019settled 27.5 payments million New volumerecord: SPECIAL FACTS ANDFEATURES IN2018/2019 Participants 7 PARTICIPATION EBA CLEARING Annual Report 2018 42 104 SEDA Alignment Electronic Database SEPA- SEDA – to exchangemandate-related informationconnectedtoSEPA Direct Debits. Italian BankingAssociation(ABI).Itiscurrently mainlyusedbyItalianbanks date-related informationaccording tobusinessrulesspecifi edbythe Service allowsfi nancialinstitutionstoexchange,process and route man- EBA CLEARING’ processed duringthatmonth. time record wasreached inNovember2018with14millionmessages average of8.8millionmandate-related informationmessages.Anewall- SEDA sawacontinuedvolumegrowth throughout 2018withamonthly Service volumeincreaseContinued forSEDA s SEPA-compliant Electronic DatabaseAlignment(SEDA) compliant compliant

EBA CLEARING Annual Report 2018 43 104 SEDA SEDA for SEPA Directfor SEPA Debits exchange service A mandateinformation STATUS: MARCH2019 KEY FACTS ANDFIGURES processed over 14 messages million record:New all-time SPECIAL FACTS ANDFEATURES IN2018/2019 Participants 33 PARTICIPATION SEDA offerbanks that reachFull ofall REACH in November2018 200,000 300,000 400,000 500,000 600,000 700,000 VOLUME OFMESSAGESPROCESSED EVOLUTION OFAVERAGE DAILY 2016 2017 SIA TECHNICAL OPERATOR Italian Banking Association (ABI). BankingAssociation Italian business rulesspecifithe edby accordinginstitutions tothe betweentwofiinformation nancial process androute mandate-related The purposeofSEDAistoexchange, FUNCTION (ABI) Banking Association Italian developedbythe lines rulesandguide- with Compliant LEGAL BASIS 14 October2013 LIVE DATE 2018 2019 EBA CLEARING Annual Report 2018 44 104 Operations Operations ience testingactivities. functionalities, integrationofnewparticipantsaswell asrelease andresil- operational ITmanagement,integrationservicesfornewproducts and support, crisisandincidentmanagement,datastatisticalreporting, Core activitiesincludeclearingandsettlement,servicemonitoring,customer Services. toring oftheEURO1,STEP1,STEP2SEPA, RT1, STEP2 CCandSEDA different countries.Theyfocusonthebusinessadministrationandmoni- EBA CLEARING’s Operationsare spread across severalsiteslocatedin

EBA CLEARING Annual Report 2018 45 104 Operations payment services. and adaptedescalationprocesses are inplaceforallother EBACLEARING Services are inlinewithoversightrequirements. Similarhighstandards reporting processes for the EURO1, STEP2 SEPA, RT1 and timely handlingofthefewincidentsthatoccurred in2018.Theincident The Company’s incidentmanagementprocesses allowed the accurateand 2 Incidentmanagement daily basis,includingpeakvolumedays. and settlementofpaymentinstructionswere carriedoutsmoothlyona uninterrupted from JanuarytoDecember2018.Furthermore, thevalidation The serviceavailabilityofallEBACLEARING’s paymentserviceswas est resilience andsecuritystandards duringtheperiodunderreport. The systemsoperatedbyEBACLEARINGperformedinlinewiththehigh- 1 Clearingandsettlement STEP2 CC

EBA CLEARING Annual Report 2018 46 104 Operations requests forcustomisedinformation. range ofneeds,includingregulatory andoversight requirements anduser EBA CLEARING’s statisticsanddatareporting servicesrespond toawide &datareporting5 Statistics agement andparticipantprovisioning. mance regarding servicecommunication,testing aswellrelease man- the 2018survey, userswere mostsatisfiedwiththeCompany’s perfor additional scores confirmingastrong customer relationship. According to revealed averypositiveaverageusersatisfactionrateof4.0(out5)and EBA CLEARINGconductsanannualqualitysurvey. For2018,theresults To assessusersatisfactionwiththeservicesprovided bytheCompany, information. cess onlinesupporttoolsaswellservice-specificdocumentationand CLEARING customerportal,whichenablesuserrepresentatives toac- The Company’s interaction with its participants is supported by the ies related totheirserviceparticipationandoperations. 24/7/365, theservicegivespracticalsupportandassistsuserswithinquir point ofcontactforuserqueries.Via anemergency helpdeskavailable EBA CLEARING’s customer support service provides a fully secured first 4 Customersupport programme alsoconsistsof54exercises intotal. pleted in2018.For2019,thebusinesscontinuityandresilience testing all partiesinvolved.Atotalof54testingexercises were successfullycom- key providers tostrengthen thebusinessresilience andpreparedness of exer EBA CLEARINGconductsasignificantnumberofbusinesscontinuity andresilience3 Businesscontinuity exercises and testedregularly tomaintainbest-of-breed servicesandprocesses. The incidentmanagementarrangementsofEBACLEARINGare reviewed to theSTEP2SEPA, STEP2CCandRT1 of theEurosystem’s oversightframeworkforpaymentsystemsandapplies operational andsecurityincidentsinretail paymentsystems,whichispart have beenalignedwiththenewmajorincidentreporting frameworkfor Since 1January2019,EBACLEARING’s incidentreporting processes cises onanannualbasisinco-operationwithserviceparticipantsand Services. EBA - -

EBA CLEARING Annual Report 2018 47 104 Operations 0 100 200 300 400 500 600 700 800 900

1,000 1,100 1,200 1,300 1,400

Customer supportcasesraisedin2018

Q1 2018 Q1 1,025 850 175

2 2018 Q2 1,047 854 193

3 2018 Q3 1,130 343 787 andQ12019

Q4 2018 Q4 1,386 1,027 359 279

Q1 2019 1,033 806 227

Live Test &Training Grand Total EBA CLEARING Annual Report 2018 48 104 Request to Pay Initiative the endof2020. opment oftheR2Pinfrastructure solution,whichcouldbeimplementedby expressed byusers,theEBACLEARINGBoard willdecideonthedevel- for userconsultationinApril2019.Basedonthisandinterest The blueprintwasmadeavailabletotheEBACLEARINGusercommunity cases. able to support different solutionsandservicesas required for varioususe pay messagesatapan-European level.Thisinfrastructure layershouldbe that wouldallowaharmonisedandmanagedexchangeofrequest to The blueprint sets forththeideaofdevelopinganinfrastructure solution pan-European Together withthistaskforce, EBACLEARINGdelivered ablueprintfor representatives from 30userinstitutionsfrom 14European countries. quest toPay(R2P)initiativewiththeset-upofanR2PTask force, involving On 12November2018,EBACLEARINGannouncedthelaunchofaRe- Pay Initiative Request to tions andpaymentslayer, withthefollowingcharacteristics: messaging infrastructure solution,separated from boththeservicessolu- The proposed R2Pinfrastructure solutionisplannedtobeareal-time thin proposed ofthe Outline R2Pinfrastructure solution EBA CLEARING’s • • • • leveraging interaction presentment and payment(EIPP),person-to-person(P2P)pointof supporting different solutions andusecases,includinge-invoicing allowing paymentsinany (SCT orInst)paymentsystem responses from thepayer allowing bothreal-time (‘Approve Now’)anddeferred (‘Approve Later’) RT1 (POI) ande-commerce payment interactions R2P infrastructure solution. components / set-up forreal-time messaging

EBA CLEARING Annual Report 2018 49 104 Request to Pay Initiative Supporting different usecasesandsolutions Scope ofapan-European R2Pinfrastructure solution Payee- Payee PSP tion wouldstayalignedwithanyschemedevelopments. MSG andwouldensure thatanEBACLEARINGR2Pinfrastructure solu- contributes tothedevelopmentsatschemelevelasamemberofRTP cess ofdefiningaframeworkfor request topayscheme.EBACLEARING An toschemedevelopments Contribution eus fr goods /services for Request EPC Request-to-PayMulti-StakeholderGroup (RTP MSG) isinthepro- Payment SCT orSCTInst Payment SCT R2P Request topay Response scope Payer- Payer PSP EBA CLEARING Annual Report 2018 50 104 Legal, Regulatory and Compliance and Compliance Legal, Regulatory Important PaymentSystems(theSIPSRegulation). under theECBRegulationonOversightRequirements forSystemically and CounciloftheECBidentified EURO1In August2014,theGoverning by SIPSoperated 1 Oversightofthe STEP2-T SystemsasSystemicallyImportantPayment (SIPS) EBA CLEARING

EBA CLEARING Annual Report 2018 51 104 Legal, Regulatory and Compliance ducted: During 2018,thefollowingdedicatedoversightassessmentswere con- lead OverseerwiththeinvolvementofEurosystem nationalcentralbanks. ments stemmingfrom theSIPSRegulationwere conductedbytheECBas EURO1 SystemandoftheSTEP2-Tagainstoversightrequire- During 2016and2017,comprehensive oversightassessments of the • • at thebeginningofyear. in 2018,theCompanywasadvisedofplannedoversight activitiesfor2018 With respect tothecontinuousoversightcycle forEURO1andSTEP2-T closely bytheLegalandRegulatoryAffairs Department. the dar andplanforregular review processes inlinewiththerequirements of During the period under report, the Company maintained the annual calen- release

a changeassessmentoftheEURO12018functionalandtechnical a changeassessmentoftheQ2andQ42018STEP2-Treleases SIPS Regulation.Theprogress of the required reviews istracked

EBA CLEARING Annual Report 2018 52 104 Legal, Regulatory and Compliance analysis for participants in both the Finally, regarding tieringrisks,EBACLEARING hascarriedoutatiering bring acomplementaryskillsettotheBoard. Board profile byincludingan‘OutsideDirector’. TheOutsideDirector will EBA CLEARING has also taken the opportunity tofurtherstrengthen its in linewiththemandatebyShareholders Meetingof11June2018, the ance structure in2018.Thisassessmentconcludedthatallmembersof Furthermore, Overseer tookplaceontheproposed wayforward. half oftheyear. Inparalleltothisconsultationprocess, exchangeswiththe The Companythuscarriedoutauserconsultationonthistopicinthefirst of the obligations in2018andtooktheopportunitytoalsoassessevolution and liquidityrisks,EBACLEARINGconductedanassessmentofthenew In thecontextoftheserevised SIPSrequirements, notablyforthecredit ience). was carriedoutinrelation tothose(seealsobelowsectiononcyberresil- cyber resilience oftheSIPSRegulation.Aseparateoversightassessment by the ECB in December 2018 have become part of the requirements on addition, thenewCyberResilienceOversightExpectations(CROE)issued participants andentitiesthatare notboundbytherulesofSIPS).In risk (i.e.identificationandmonitoringofmaterialdependenciesbetween SIPS Regulation relate liquidity and credit to governance, risk and tiering EURO1 and The mainareas offocusforEBACLEARINGasSIPSOperatorthe (i.e. 6June2019). liquidity riskandcredit riskan18-monthtransitionperiodwasforeseen 2018), savethatforcompliancewiththenewrequirements regarding SIPS Operatorswiththechangedornewrequirements (i.e.6December SIPS Regulation foresaw a one-year transition period for compliance by on 6December2017(20daysafterpublicationintheOJ).TheRevised (OJ)oftheEUon16November2017andenteredOfficial Journal intoforce The RevisedSIPSRegulationof3November2017waspublishedinthe and havebeenshared withtheOverseer. for from tiered participationinthesesystemshaverevealed norelevant risk assessment ofmaterialdependenciesandtheevaluation ofrisksarising EBA CLEARINGoperations.Theseanalysesare properly documented EBA CLEARINGBoard are independentdirectors. Nevertheless,and STEP2-T design, in particular with regard to the settlement model. STEP2-T Systems in view of compliance with the Revised - EBA CLEARINGcarriedoutanassessmentofitsgovern EURO1 and STEP2-T Systems. The

EBA CLEARING Annual Report 2018 53 104 Legal, Regulatory and Compliance pleted: During 2018,thefollowingdedicatedoversightassessmentswere com- in thecontextofcontinuousoversightactivitiesduring2019. from theECB.Theapproach totherecommendations isbeingfollowedup the Overseerwere heldbyEBACLEARINGtoaddress recommendations work forRPSs.During2018,actionswere takenanddiscussionswith applicable toORPS,asoutlinedintherevised Eurosystem oversightframe- Board Organisation oftheInternational ofSecuritiesCommissions(IOSCO) of theCommitteeonPaymentsandMarketInfrastructures (CPMI)andthe the In June2018,theECBcompletedoversightassessmentofRT1 between theECBandEBACLEARINGinrelation toRT1 (RPSs). Since2018,regular formaloversightmeetingshavetakenplace the revised Eurosystem OversightFrameworkforRetailPaymentSystems RT1 operates withtheEurosystem centralbanksontheseactivities. CLEARING’s newinstantpaymentsystem,RT1 Council of the Governing In May2017,theECBnotifiedEBACLEARINGofdecision by EBACLEARING RT1 3 Oversightofthe ing period,nochangeassessmentswere necessary. to theSTEP2CCSystemwere scheduledorcarriedoutduringthereport- changes wouldattractadedicatedoversightassessment.Asno Deutsche Bundesbankinviewofaclassificationtodeterminewhether Upcoming changesinrelation totheSTEP2CCsystemare advisedto between DeutscheBundesbank,theECBandEBACLEARING. During thereporting period,periodicformaloversightmeetingstookplace by EBACLEARING STEP2CCsystemoperated 2 Oversightofthe • • •

a majorchangeassessmentoftheRT1 an expostfactoreview oftheRT1 the applicablePrinciplesforOtherRetailPaymentSystems (ORPS) a comprehensive oversightassessmentof RT1 CPMI-IOSCO PrinciplesforFinancialMarketInfrastructures (PFMIs) has beenclassifiedas Other Retail Payment System(ORPS) as per ECB to assign oversightcompetence for EBA systemoperated Q22018release November2018release , totheECB.Theco- againstcompliancewith oversight. against

EBA CLEARING Annual Report 2018 54 104 Legal, Regulatory and Compliance party optionalfunctionality. well asoptionalRT1 Transfer and the effect of introducing clarifications in relation to the tation ofSTEP2andRT1 The their liquidity. options forliquidity-servicedparticipantstochoose from formanaging changes proposed totheRT1 (LAG) metbyconference callon16May2018todiscussandreview the On theoccasionof 5 Legaladvisorygroup activities Authority toplantherelated exercises forEURO1andSTEP2-T which iswhytheCompanyhasbeenindialoguewithCompetent EBA CLEARING’s that fallwithintheregulatory remit ofseveralauthorities. core financialinfrastructure, includingentitieswithcross-border activities designed fornationalandEuropean authoritiesandentitiesthatformthe cyber-attacks inthefinancialindustry. TheTIBER-EUframeworkhasbeen first Europe-wide frameworkforcontrolled andbespoketestsagainst Threat Intelligence-basedEthicalRedTeaming (TIBER-EU),whichisthe In parallel,on2May2018,theECBpublishedEuropean frameworkfor STEP2 CCandRT1 of theCROEforEURO1andSTEP2-TatAdvancinglevel EBA CLEARINGasanoperatorofSIPSandORPSfallsunderthescope December 2018. the GuidanceinformofCROE,whichwere issuedbytheECBin Overseers developedanoversightapproach toassesstheirFMIsagainst in relation toalltypesofFMIs. Council adoptedon3June2013fortheconductofEurosystem oversight been developedtosupplementthePFMIs,whichECBGoverning tures waspublishedbytheCPMI-IOSCOinJune2016.TheGuidancehas The globalGuidanceoncyberresilience forfinancialmarketinfrastruc- 4 Cyberresilience LAG wasfurtherinformedofthechangesmadetolegal documen- SEPA Instant Credit Transfer Scheme Rulebook updates, as SIPS fallunderthescopeofTIBER-EUframework, attheEvolvinglevel. closed-usergroups andanRT1 TIPS instructing RT1 madeinviewoftheNovember2018releases to June2018release, theLegal Advisory Group RulesandRegulationstointroduce i.a.more EPC SEPA Credit .

EBA CLEARING Annual Report 2018 55 104 Legal, Regulatory and Compliance participation byaparticipantto“reorganisation entity”. tinuation of participation in the the technicalclarificationsbrought totheEURO1Rulesallowcon- During its 15 January 2019 meeting, the documentation toclarifysuchroles. on 15January2019andtoreview amendmentsproposed tothesystem GDPR. SIA platformtoclarifyroles, takingintoaccounttheentryforce of the stream todocumentchangesdesirableforthesystemsoperatingon STEP2 CCand roles ofEBACLEARINGasaSystemOperatortheEURO1,STEP2-T, the impactofGeneralDataProtection Regulation(GDPR)onthecurrent place by conference call on 10 April 2018, where its members discussed As mentionedintheannualreport for2017,ameetingoftheLAGtook available onthewebsiteofEBACLEARING. Responses madebyEBACLEARINGtopublicconsultationsare typically mitted on5June2018. CROE. Thereply byEBACLEARINGtothepublicconsultationwassub- On 10April2018,theECBlaunchedapublicconsultationondraft consultations 6 Public In thiscontext,ameetingoftheLAGwasheldbyconference call RT1 systems.TheLAGfurtheraccompaniedthework- EURO1 System in the case of a transfer of LAG also discussed and reviewed

EBA CLEARING Annual Report 2018 56 104 Risk Management Security and Information Business Continuity Risk Management, coordinated withtheCompany’s criticalserviceproviders. related matters.Inaddition,newcyber security-related initiativeswere activities, whichaimtoprovide bothfirst- and second-linesupportincyber- supporting theCompany’s CyberSecurityOperationsCentre (C-SOC) threat intelligencewascollectedfrom multiplehighlyreputable sources Risk Managementfunction.Inlinewithitsrapidevolution,actionable Throughout 2018,cyberriskmitigationremained aprominent focusofthe cybersecurity-relatedDedicated activities risks. view toassessingandmitigatingtheCompany’s topandnewlyemerging A regular dialoguetookplacewiththeBoard RiskCommittee(BRC)witha maintained andsubjecttofurtherenhancementsofthereporting tools. Simultaneously, theEnterpriseRiskManagementFrameworkwaswell executives andstaff. the levelofriskawareness andunderstandinghighamongtheCompany’s practice andoversightrequirements. Inaddition,efforts continuedtokeep all toolsandmethodologieswere maintainedinlinewithbestindustry duly sustained,aspartofthe‘secondlinedefence’.Itwasassured that Throughout theperiodunderreport, theRiskManagementfunctionwas developments 1 Internal

EBA CLEARING Annual Report 2018 57 104 Risk Management ments wascompletedinthefirstquarterof2019. Advancing). TheCompany’s self-assessmentagainsttherelevant require- onstrate compliancewithtwoofthelevelsexpectations (Evolvingand Important PaymentSystems(SIPS),EBACLEARING isexpectedtodem- ments asapplicabletoitssystems.Astheoperator oftwoSystemically Bank, tations Following thepublicationin2018ofCyberResilienceOversightExpec- on theNationalInstituteofStandards andTechnology (NIST)standard. finalised in2018withthedeliveryofaCyberResilienceFrameworkbased and MarketInfrastructures (CPMI),initiallypublishedinJune2016,were ience forFinancialMarketInfrastructures bytheCommitteeonPayments The workstrandsconductedtocomplywiththeGuidanceonCyberResil- EBA CLEARINGundertookacomprehensive analysisoftherequire for financial marketinfrastructures(CROE) bythe European Central EBA CLEARING Annual Report 2018 58 104 Risk Management ed risksessionsforitsusercommunities. risk management.For2019,theCompanycontinuestoorganise dedicat- strategy towards risk.Specialattentionwasgiventotheevolutionofcyber throughout 2018,withafocusonEBACLEARING’s mission,vision,and a key item on the agenda of multiple bilateral user and country group visits As inprevious years,thebroader topicofenterpriseriskmanagementwas sessions 3 Riskinformation information andcybersecurityriskawareness, culture, andcontrols. opments andtostayfocussedonfurtherstrengthening theCompany’s tors ofeachunit,continuedtomeetfrequently todiscussanynewdevel- Coordination Group, whichiscomposedofinformation securitycoordina- Throughout theperiodunderreport, theCompany’s InformationSecurity give thenecessaryconfidencetoallinterested parties. ate securitycontrols thatprotect informationassetsoftheCompanyand ard, whichisdesignedtoensure the selectionofadequateandproportion- the Company’s continuedcompliancewiththerequirements ofthestand- ard foranotherthree-year period,until2022.There-certification confirmed 27001:2013 stand- agement Systemwasre-certified againsttheISO/IEC Towards theendof2018,EBACLEARING’s InformationSecurity Man- security 5 Information the organisation andtimelyexecutionofbusinesscontinuitytests. and activities.Inlinewithindustrybestpractice,astrong focusisputon evolve thebusinesscontinuityandresilience oftheCompany’s services dures, processes, structures, toolsandpeoplenecessarytomaintain BCMS coversalloftheCompany’s capabilities,i.e.policies,plans,proce- ISO22301standard.(BCMS), whichisalignedwiththeinternational The ued themaintenanceofitsBusinessContinuityManagementSystem In order to assure continuedservicetoitsusers,EBACLEARINGcontin - managementsystem 4 Businesscontinuity vice providers. the guidanceofBRCandinadialoguewithCompany’s criticalser potential impactontheCompany’s services.Thisworkwaspursuedunder around theeconomicandfinancialsectorinEurope andtoassesstheir Throughout 2018,EBACLEARINGcontinuedtomonitortheriskfactors developments 2 External -

EBA CLEARING Annual Report 2018 59 104 Internal Audit Internal Audit suring. place duringtheperiodunderreport. Theresults canbeclassifiedas- Audit assessments of the Company’s most critical service providers took were completedin2018asscheduled. year. audits andexternal Inlinewiththeannualauditplan,variousinternal open dialogueonallaudit-related matters wasmaintainedthroughout the the guidanceofAuditandFinanceCommittee (AFC),withwhichan The Company’s auditstrategyandplanningfor2018wasestablishedunder Company duringtheperiodunderreport. practice andcontinueditsmissionasthe‘third lineofdefence’withinthe EBA CLEARING’s Auditfunctionwasmaintainedinlinewithbest Internal EBA CLEARING Annual Report 2018 60 104 Corporate Governance Governance Corporate Board havebeen thefollowing: ed forathree-year termofoffice,thechangestomembership ofthe for theremainder ofhistermoffice,and five Board memberswere elect- Nieder Since theShareholders Meetingon11 June 2018,duringwhichPetia three-year term. appointed intuitu personae by the Shareholders Meeting for a renewable man anduptotwo(2)butnotlessthanone(1)Outside Director whoare than seventeen(17)membersincludingtheChairman, theDeputyChair provide thattheCompanyismanagedby a Board composedofnotmore The Company’s by-laws,asamendedwitheffect asof30November2018, a 1 Board composition Board ofdirectors länder waselectedasChairmaninreplacement ofErkkiPoutiainen -

EBA CLEARING Annual Report 2018 61 104 Corporate Governance • • • shareholders have acontrolling stakeinEBACLEARING . shareholders, and are considered tobeindependent sincenoneofthe current members oftheBoard are employeesorofficersofEBACLEARING EBA CLEARINGandhavingonevoteatthe Shareholders Meeting.Allthe EBA CLEARING has currently 49 shareholders, each holding one share of mitted forratificationtothisAnnualOrdinary Shareholders Meeting. The appointmentoftheBoard membersco-opted by theBoard willbesub-

ber tofillthevacancyfollowing resignation ofPeter Vance. Committee,co-optedMicheleOlinasBoardtion andGovernance mem- Effective 24December2018,theBoard, uponproposal bytheNomina- haus. member tofillthevacancyfollowing resignation ofChristian Wester Committee,co-optedChristofHofmannasBoardtion andGovernance Effective 18December2018,theBoard, uponproposal bytheNomina- länder asEBACLEARINGChairman. member tofillthevacancyfollowingappointmentofPetiaNieder Committee,co-optedNiklasLembergtion andGovernance asBoard Effective 18September2018,theBoard, uponproposal bytheNomina- - -

Board members, other than the Outside Director(s), shall be elected from Overview of Board members among employees or officers of the shareholders. The policy for the nomina- who held office in 2018 – 2019 tion of candidates to the EBA CLEARING Board of Directors (the Board Nomination Policy) sets the framework for the Board members’ nomination process. The Nomination and Governance Committee of the Board maintains a Board target profile to track the desirable collective attributes for ensuring an appropriate mix of technical skills, knowledge and experience on the Board, and assists the Board in ensuring that the Board’s composition allows the Board to fulfil its respective roles and responsibilities.

In 2018, the Board undertook a fourth review of its effectiveness. In accordance with EBA CLEARING’s Board Evaluation Policy and Methodology, a review of the Board’s overall performance and the performance of its indi- Chairman Chairman Deputy Chairman vidual Board members is conducted on an annual basis. of the Board of the Board of the Board Erkki Poutiainen Petia Niederländer Robert Heisterborg The members of the Board, other than the Outside Director(s), do not re- Nordea Bank Abp ERSTE Group Bank AG ING Wholesale Bank ceive any director’s fees, but are reimbursed for the travel expenses incurred in the discharge of their duties for the Company. Strategy Manager, SVP Head of Group Retail & CEO Bank Mendes Gans CM Customer Solutions, Corporate Operations This Annual Ordinary Shareholders Meeting will be asked to proceed with Transaction Banking Appointed on 06.06.2016 the election of the Chairman, Deputy Chairman, one Outside Director and Appointed as Board member End of term of office: three other Board members. Appointed on 06.06.2016 on 06.06.2016 SHM 2019 End of term of office: Appointed as Chairman 11.06.2018 of the Board on 11.06.2018 Chair of the Strategy b Board role and responsibilities End of term of office: and Policy Committee Chair of the Nomination SHM 2019 The Board is responsible for setting the strategic direction, overseeing and Governance Committee management and adequately controlling the Company, with the ultimate aim until 11.06.2018 Chair of the Nomination and of directing the Company towards the fulfilment of its strategic aims and Chair of the Remuneration Governance Committee long-term objectives. Committee until 11.06.2018 since 11.06.2018 Chair of the Remuneration Committee since 11.06.2018 c Board meetings Chair of the STEP2 Business Committee until 31.12.2018 The following Board meetings took place in 2018 and in 2019 to the date of this report:

• 6 and 7 February 2018 • 14 November 2018 • 3 May 2018 • 26 and 27 February 2019 • 18 May 2018 • 25 April 2019 • 4 July 2018 • 10 May 2019 • 27 September 2018 • 24 May 2019 104 Corporate Governance 104 Corporate Governance EBA CLEARING Annual Report 2018 62 EBA CLEARING Annual Report 2018 63 Overview of Board members who held office in 2018 – 2019

James Barclay Jutta Cammaer Daniela Dell’Arciprete Petia Niederländer Niklas Lemberg JP Morgan Chase Bank N.A. KBC Bank N.V. Intesa Sanpaolo S.p.A. ERSTE Group Bank AG Nordea Bank Abp

Executive Director, Global General Manager Payments Head of Corporate and Financial Head of Group Retail & Head of Payment Industry Market Infrastructures for Corporates Institutions Sales and Network Corporate Operations Appointed on 18.09.2018 Management Appointed on 19.06.2017 Appointed on 19.06.2017 Appointed on 06.06.2016 End of term of office: SHM 2019 End of term of office: SHM 2020 End of term of office: SHM 2020 Appointed on 11.06.2018 End of term of office: SHM 2019 Chair of the STEP2 Business End of term of office: SHM 2021 Chair of the STEP2 Business Committee since 01.01.2019 Chair of the Board Risk Committee Committee since 24.12.2018

Kirstine Nilsson Edström Christian Rhino Luis Pedro Simões Raouf Soussi Laghmich Fabio Stragiotto Swedbank AB (publ) Commerzbank AG Novo Banco S.A. BBVA S.A. UniCredit S.p.A.

Head of Business Infrastructure Divisional Board Member Co-Head of Payment Operations Head of Global Product for Vice President – Client Access GCP & GCM Group Banking Operations Treasury Solutions Italy and Payment Products Appointed on 11.06.2018 Global Transaction Banking Appointed on 11.06.2018 Appointed on 06.06.2016 End of term of office: SHM 2021 Appointed on 11.06.2018 End of term of office: SHM 2021 End of term of office: End of term of office: SHM 2021 Appointed on 19.06.2017 SHM 2019 End of term of office: SHM 2020

Frantz Teissèdre Peter Vance Michele Olin Christian Westerhaus Christof Hofmann Narinda You Société Générale S.A. Allied Irish Banks, p.l.c. Allied Irish Banks, p.l.c. Deutsche Bank AG Deutsche Bank AG Crédit Agricole S.A.

Head of Interbank Relationships Head of Banking Operations & Head of Payments Head of Cash Clearing Products Global Head of Payments and Payment Services Customer Services RCB Digital Products and GTB Cash Management Collection Products, Head of Strategy and Appointed on 06.06.2016 Payments Corporate Cash Management Interbank Relations End of term of office: SHM 2019 Appointed on 11.06.2018 End of term of office: 18.12.2018 Chair of the EURO1 Business End of term of office: 14.11.2018 Appointed on 24.12.2018 Chair of the Board Risk Appointed on 18.12.2018 Appointed on 19.06.2017 Committee since 01.01.2019 Chair of the EURO1 Business End of term of office: SHM 2021 Committee until 18.12.2018 End of term of office: SHM 2020 End of term of office: SHM 2020 Committee until 14.11.2018 104 Corporate Governance 104 Corporate Governance EBA CLEARING Annual Report 2018 64 EBA CLEARING Annual Report 2018 65 EBA CLEARING Board committee 2 Board Committees membership in 2018 a Introduction

Audit and Board Risk Strategy and Nomination Remuneration In 2018, the Board was supported by five Board Committees, composed of Finance Committee Policy and Governance Committee Board members, in carrying out its functions: the Audit and Finance Com- Committee Committee Committee mittee, the Risk Committee, the Strategy and Policy Committee, the Nomi- nation and Governance Committee, and the Remuneration Committee.

Number of 6 4 5 7 4 meetings in 2018 b Audit and Finance Committee Petia Niederländer Observer Observer Chair Chair (since 11.06.2018) (since 11.06.2018) (since 11.06.2018) (since 11.06.2018) The Audit and Finance Committee (AFC) assists the Board in fulfilling its

oversight responsibilities for setting out the policy and the guidelines for the Erkki Poutiainen Observer Observer Chair Chair internal and external audit of the Company, for defining and monitoring the (until 11.06.2018) (until 11.06.2018) (until 11.06.2018) (until 11.06.2018) internal audit requirements and the tasks entrusted to the external auditors,

Robert Heisterborg Member Chair Member and for reviewing and monitoring the financial situation of the Company.

James Barclay Member Member To this end, the AFC regularly reports on its activities to the Board and (since 24.12.2018)

Jutta Cammaer Member • examines the annual and interim statutory and consolidated financial (since 24.12.2018) statements of EBA CLEARING submitted by the Company’s management, prior to their examination by the Board. As part of these tasks, Daniela Chair the committee reviews and analyses the budget variance, forecast and Dell’Arciprete (since 24.12.2018) financial statements; Christof Hofmann Member (since 01.04.2019) • gives its opinion on the development of the internal audit function, determines the internal audit plan and receives a summary of the internal audit Niklas Lemberg reports on a regular basis; Kirstine Nilsson Member Edström • reviews the audit findings of the Company’s statutory auditors and the

report from the statutory auditors on key audit findings. Michele Olin

Christian Rhino Member The AFC met six times in 2018. Its work particularly focussed on the Luis Pedro Simões Chair Member following items: Raouf Soussi Laghmich • continued improvement and standardisation of financial reporting to assist regulatory compliance and to ensure predictability of overall busi- Fabio Stragiotto Member Member ness performance to gain deeper financial insight and maintain tight Frantz Teissèdre control of finances;

Peter Vance Member • regular review of the predefined key performance indicators for finance (until 14.11.2018) and for audit, including analysis against budget to adapt the 2018 fore- Christian Chair Member Member cast, cashflow projections and outlook; Westerhaus (until 18.12.2018) (until 18.12.2018) (until 18.12.2018) • examination of the statutory and consolidated financial statements for Narinda You Member Member 2018 in view of their closing in 2019 and review of the 2019 budget and capital investment plan;

104 Corporate Governance 104 Corporate Governance • review of the internal audit 2018 activity report and approval of the inter- EBA CLEARING Annual Report 2018 66 EBA CLEARING Annual Report 2018 67 nal audit plan for 2019; • review of AFC Terms of Reference for subsequent endorsement by the In detail, the SPC closely accompanied the evolution of RT1 functionality, Board; which was implemented through four releases between November 2017 and May 2019. The Committee also gave input to and guidance on the • examination and approval of a project to upgrade, standardise and im- user consultation process for STEP2 and related considerations on chang- prove the Company’s financial toolset and processes; es to the STEP2 settlement model in light of revised requirements of the SIPS Regulation. The SPC further provided direction on the way forward • ensuring that the Highly Liquid Assets (HLA) reserve was at the appro- regarding the ISO migration and the future positioning of EURO1. priate level at all times in line with SIPS requirements. Other relevant strategic topics on which the SPC provided guidance included considerations around cross-service alignment as well as the launch and c Board Risk Committee development of a pan-European Request to Pay (R2P) initiative.

The Board Risk Committee (BRC) assists the Board in fulfilling its over- The SPC also closely followed and was consulted on oversight develop- sight responsibilities with regards to the risk tolerance of the Company and ments of strategic relevance. The Committee further engaged in consid- the risk management and compliance frameworks. erations around the general future positioning of the Company’s services based on a close monitoring of relevant developments in the European and The BRC is composed of Board members designated by the Board; meet- global payments ecosystem. ings of the BRC are attended by the Company’s Chief Executive Officer, the Chief Risk Officer and the General Counsel. e Nomination and Governance Committee Four regular BRC meetings took place in 2018. One additional meeting was dedicated to the financial market infrastructure cyber threat land- The Nomination and Governance Committee (NGC) assists the Board in scape, its evolution and the state of the Company’s Cyber Resilience implementing and reviewing the nomination policy and process for Board Framework. The session was attended by the full Board. members and the policy and methodology for Board and individual Board member evaluation. The NGC further monitors the effectiveness of the In line with its mission, the BRC also monitored the maintenance of the Company’s governance framework. During 2018, seven meetings of the Risk Management Framework and the follow-up of outstanding risks in NGC were held. accordance with the Company’s Risk Treatment Plan. The BRC received reports on the top actual and emerging risks and monitored the follow-up The major topics addressed by the NGC in 2018 included (i) changes to actions relating thereto. the composition of the Board and its Committees in relation to the replacement of the Chairman and of some Board members, (ii) a change to the Cyber-related risks and oversight expectations remained prominently on by-laws of EBA CLEARING in line with the approach agreed at the Share- the agenda of the Committee throughout 2018. holders Meeting on 11 June 2018 for establishing compliance with the new requirement of the Revised SIPS Regulation regarding the Board composition of a SIPS operator, and (iii) the search for an Outside Director. d Strategy and Policy Committee In relation to these high-level topics, the NGC dealt with the following The Strategy and Policy Committee (SPC) addresses the longer-term tasks in 2018: planning for the positioning and the development of the Company, its payment infrastructure systems and solutions as well as potential new service • nomination process for a replacing Chairman; offerings. In 2018, the Committee met five times. • nomination process for the co-optation of replacing Board members; In 2018 and early 2019, the SPC provided guidance on three focal areas: • changes in the composition of the EURO1 Business Committee and the • transformation of the services in light of new oversight requirements and STEP2 Business Committee and preparation for the nomination of new evolving user needs; Chairs for both Business Committees;

• development of RT1 in line with growing user needs, in particular to foster • changes in the composition of the Board Risk Committee and Strategy RT1 adoption; and Policy Committee;

104 Corporate Governance • launch and progress of an initiative to work on a pan-European Request 104 Corporate Governance • assessment of options and preparations of changes to corporate EBA CLEARING Annual Report 2018 68 to Pay solution. EBA CLEARING Annual Report 2018 69 governance documents including the Board nomination policy and the Company by-laws to establish compliance with the requirement of the 3 User say governance Revised SIPS Regulation to include an ‘independent director’ within the meaning as defined in the Revised SIPS Regulation; a Relations with users

• assessment of options and proposal for a Remuneration Policy for the In order to ensure that all types of users are considered in the design and Board of Directors in preparation of the appointment of an Outside Director; evolution of its systems and offerings, the Company maintains a broad range of communication channels with its (current and potential) users and other • assessment of options for selecting candidates to the position of Out- stakeholders. There are regular country or regional user meetings with the side Director participation of all respective users and attended by EBA CLEARING executives, where ongoing activities and projects are discussed and feedback is registered. In the context of specific projects, steering groups or task forces The NGC carried out a significant number of other tasks in 2018, including: may be created to ensure efficient liaison throughout the project or initiative.

• review of the outcome and guidance on follow-ups of the annual Board Furthermore, the Company organises individual user visits, and when ap- performance evaluation for 2017; propriate or desired, roadshows and information campaigns.

• nomination process for the election of Board members at the Sharehold- ers Meeting of 11 June 2018; b Identical user consultation processes for the SIPS operated by the Company • changes in the composition of the Operations and Technical Group (OTG) and Treasury and Liquidity Group (TLG); On 2 January 2018, an identical structure was adopted for user consultation for the two SIPS operated by the Company. The user consultation • preparation of changes to the Code of Ethics and Business Conduct to processes for the EURO1 System and the STEP2-T System are handled update the section on “confidentiality”; via a dedicated Business Committee for each service; the Business Com- mittees are consultative bodies providing recommendations to the Board. • scoping and launch of the annual Board performance evaluation for 2018; and All decisions affecting a system for which a Business Committee has been established are made by the Board upon consultation with the relevant • review of the Terms of Reference of the AFC. Business Committee.

Business Committees are chaired by a Board member. From January to May 2019, the activities of the NGC were devoted to

• the review of the outcome of the Board performance evaluation for 2018 c User consultations for systems and services other than EURO1 and STEP2-T • the screening of the candidacies for the position of Outside Director The Company consults its users, communities of users and other stake- • accompanying the nomination process for the Outside Director as well holders (as required) in the event of changes that affect the Company’s as for the candidates to fill one third of the seats on the Board, including services and/or service platforms. The consultation process on changes the positions of Chairman and Deputy Chairman, which will become va- is, in principle, composed of the following steps: submission of proposals cant at the end of the Shareholders Meeting on 17 June 2019. by or to the relevant stakeholders; evaluation of the proposals by the Com- pany, including technical feasibility and cost analysis; and submission of a proposal to the Board for decision on implementation of all or part of the f Remuneration Committee recommended changes.

The Board is further assisted by the Remuneration Committee in establish- The adaptations to the governance arrangements for the SIPS operated ing a sound remuneration framework, which fosters high performance and by EBA CLEARING do not impair the flexibility required to accommodate motivation of staff members in line with the resourcing strategy and the specificities in relation to given services or initiatives as well as evolving interests of the Company. The Remuneration Committee has delegated scopes of activity, which may warrant different models for consultation powers from the Board in these matters. During 2018, four meetings of the and decision-making. The user say governance for the different systems

104 Corporate Governance Remuneration Committee were held. 104 Corporate Governance and services is designed to effectively respond to the stakeholders’ needs EBA CLEARING Annual Report 2018 70 EBA CLEARING Annual Report 2018 71 for efficient organisation of the different groups and their remit. To allow the Board and management to take account of the interests of the 4 Other stakeholders users in its decision-making in relation to the design, rules, overall strategy and major changes to the various systems and services, the Company Potential users and other stakeholders has, apart from the Business Committees established for the SIPS operated by the Company, established the following user groups: Apart from the consultation and coordination with user and expert groups mentioned above, the Company organises roadshows and information i RT1 Working Group sessions for wider stakeholder groups when and where relevant. Consulta- Its objective is to serve as a forum in which direct participants in the RT1 tions may also take place on an ad-hoc basis. System can discuss and provide feedback on the development, change management and evolution of the RT1 Service, as well as related initiatives. Overseer and policy stakeholders

ii STEP2 CC Group The Company’s mission underpins its resolve to contribute to industry ini- Its objective is to serve as a forum in which direct participants in the STEP2 tiatives and to engage with industry and policy stakeholders, including CC Service can discuss and provide feedback on the development, regulators, overseers, the European Payments Council, standardisation change management and evolution of the service. bodies, and the constituencies entrusted with policy setting.

iii STEP1 User Advisory Group Its objective is to serve as a forum for the STEP1 user community and as 5 Management a channel to express requirements or proposals to the Company’s Board. Hays Littlejohn has been serving as CEO of EBA CLEARING since 1 May 2015. d Expert Groups and other expert fora The CEO is responsible for the day-to-day management of the Company, The following Expert Groups have been established: and delegates authorities to the Heads of Unit and staff of the Company. As per best practice and in line with the requirements of the SIPS Regula- i Operations & Technical Group (OTG) tion, the Company has in place a set of codes and policies including a Its mission is to analyse and review proposals and to formulate recom- code of ethics, a remuneration policy and a policy on selection, monitoring mendations relating to operational, procedural, functional and technical and removal of members of management. aspects of the systems of EBA CLEARING. Prior to his role as CEO of EBA CLEARING, Hays Littlejohn held manage- ii Legal Advisory Group (LAG) rial and executive positions in global transaction banking at UBS AG. Its mission is to analyse and review proposals from a legal point of view Having joined the Swiss bank in 1991, Hays covered a wide range of areas and to formulate legal recommendations regarding the same. The LAG during his international career at UBS, including information technology, also assists in the monitoring of legal projects and formulates recommen- operations, trade finance, product management, relationship manage- dations regarding the resourcing for given projects. ment, sales, business development and market infrastructures. Hays also served on the Board of CLS and, for more than 10 years, on the Board of iii Treasury and Liquidity Group (TLG) EBA CLEARING. Its mission is to act as an advisory expert group relating to the management and use of liquidity within the systems operated by EBA CLEARING.

Expert Groups provide expert advice for all systems for which a Business Committee is established and can be solicited for input in relation to other systems or services when required or appropriate.

The Company establishes other expert fora in accordance with identified needs. For example, a EURO1 Future Positioning Group was created in 2017 to assist in the analysis and review of options and the formulation of recommendations regarding the EURO1 System and its positioning and value proposition in the medium to long term. 104 Corporate Governance 104 Corporate Governance EBA CLEARING Annual Report 2018 72 EBA CLEARING Annual Report 2018 73 6 Country representatives 7 Transfer of shares and changes in share capital of EBA CLEARING

The following changes occurred in 2018 and in the first few months of 2019 as far as EBA CLEARING share capital and EBA CLEARING Share- holders are concerned:

• With effect as of 1 April 2018, The Bank of Tokyo-Mitsubishi UFG, Ltd (EURO1 Participant and EBA CLEARING Shareholder) changed its name to MUFG Bank, Ltd.

Janina Grönholm Eva Herskovicova Katja Heyder • With effect as of 9 April 2018, Citibank Europe Plc became EURO1 Par- Baltic Countries, Czech Republic, Hungary, Austria, Bulgaria, Croatia, Cyprus, ticipant and EBA CLEARING Shareholder in replacement of Citibank NA. Finland and Poland Slovakia and Slovenia Germany, Greece, Liechtenstein, Luxembourg, Malta, Romania, Spain and Switzerland • With effect as of 1 October 2018, Nordea Bank Abp replaced Nordea Bank AB (publ), Finnish Branch, as EURO1 Participant and as EBA CLEARING Shareholder.

• With effect as of 13 March 2019, Standard Chartered Bank AG became EURO1 Participant and EBA CLEARING Shareholder in replacement of Standard Chartered Bank.

• With effect as of 1 April 2019, Wells Fargo Bank NA withdrew as EURO1 Erwin Kulk Petra Plompen David Renault Participant and as EBA CLEARING Shareholder. Portugal Belgium France

• With effect as of 1 April 2019, Lloyds Bank Plc withdrew as EBA CLEARING Shareholder.

As of 31 December 2018, the share capital of EBA CLEARING amounted to EUR 51,000.

Jette Simson Alan Taylor Daniela Vinci

Scandinavian Countries United Kingdom and Ireland Italy

André Vink

The Netherlands 104 Corporate Governance 104 Corporate Governance EBA CLEARING Annual Report 2018 74 EBA CLEARING Annual Report 2018 75 EBA CLEARING Annual Report 2018 76 104 Oversight of the Payment Systems EBA CLEARING Payment Systemsof Oversight ofthe operated byEurosystem national central banksorprivateentities. large-value andretail payment systemsofsystemicimportance,whether by EU Regulation2017/2094 (the revised ically ImportantPaymentSystems(theSIPSRegulation)amendedin2017 The ECBRegulation(EU795/2014)onOversightRequirements forSystem andSTEP2-T 1 OversightofEURO1 SIPS Regulation), covers both

EBA CLEARING Annual Report 2018 77 104 Oversight of the Payment Systems of twoSIPS. fore, with theparticipationbynationalcentralbanksof Eurosystem. There- System isalsoundertheoversightofECBasCompetentAuthority has beenunderoversightoftheECBsinceitslaunch.The STEP2-T voluntary participationbynationalcentralbanksofthe Eurosystem. EURO1 The Payment SystemsundertheSIPSRegulation. ing CounciloftheEuropean CentralBank(ECB)asSystemicallyImportant In 2014, value andretail paymentsystems. No distinctionismadefortheapplicationofRegulationbetweenlarge- the systemprovides settlementforotherfinancialmarketinfrastructures. gree ofmarketpenetration,asystem’s cross-border activityandwhether system’s importanceisdeterminedbyanappraisaloffinancialimpact,de- Systemically ImportantPaymentSystems(SIPS)intheEurozone. The structures The EURO1 SystemisoverseenbytheECBasCompetentAuthority, with SIPS Regulationimplementsthe Principles forFinancialMarketInfra- EBA CLEARINGisintheuniquepositionofbeing SIPS Operator STEP2-T and (PFMIs), issuedbyCPMIandIOSCOin2012,appliesto EURO1 were- identified by decision of the Govern

EBA CLEARING Annual Report 2018 78 104 Oversight of the Payment Systems ment System(ESIRPS). STEP2-T alsoclassifiesasaEuropean SystemicallyImportantRetail Pay- • • • is madeinrelation toretail paymentsystemsbetween: according totheEurosystem’s paymentsystemclassification,adistinction and withreference tothemostcurrent publishedlistofpaymentsystems Oversight FrameworkforRetailPaymentSystemsoftheEurosystem SIPS Regulationandofotherclassifiedsystems.InlinewiththeRevised The

Other RetailPaymentSystems(ORPS) Prominently ImportantRetailPaymentSystems (PIRPS)and Systemically ImportantRetailPaymentSystems(SIRPS) ECB publishesonitswebsitethelistofsystemsthatfallunder

EBA CLEARING Annual Report 2018 79 104 Oversight of the Payment Systems beginning ofeachyear. activities isestablishedbytheECBandnotifiedtoEBACLEARINGat Overseer onEBACLEARING’s The aboveisdoneinparalleltothecontinuousoversightactivitiesby oversees witharegular frequency. further conducts comprehensive oversight assessments of the systems it is formallyadvisedtoEBACLEARINGbytheOverseer. TheOverseer post factooversightassessment.Theresult ofthesechangeassessments determines whether changes to the systems require an ex ante or an ex subject toclassification.Inaccordance tothisclassification,theOverseer Any changetotheSIPSandORPSthatEBACLEARINGoperatesare of theSIPSRegulation. on anyplansandupcomingchangesinrelation totopicswithinthescope participation oftheCEOCompany. Regularexchangestakeplace CLEARING are scheduledtotakeplaceonasemi-annualbasiswiththe and Formal oversightmeetingsbetweentheECB /Eurosystem for SIPS Overseerandoversightassessments the 2 Dialoguewith oversight assessment. classification todeterminewhetherchangeswould attractadedicated STEP2 CC system are advised to Deutsche Bundesbank in view of a bank /ECB andEBACLEARING.Upcomingchangesinrelation tothe Regular formaloversightmeetingstakeplacebetween DeutscheBundes- based onthemarketshare ofthesystemat euro area countrylevel. Formal classificationofSTEP2CCasOtherRetailPaymentSystemis fault RulesandProcedures, andAccessParticipationRequirements). and three withaslightdifferentiation ParticipantDe- (namelyGovernance, to bothPIRPSandORPS,ofwhichsixwiththesamelevelstrictness the Eurosystem nationalcentralbanks.Nineprinciples of the PFMIs apply standards tobeappliedretail paymentsystemsotherthanSIRPSby links betweenretail paymentsystems(OELRPS)formthecore ofthe Systems oftheEurosystem, thePFMIs and theOversightexpectationsfor In accordance withtheRevisedOversightFrameworkforRetailPayment Deutsche BundesbankasleadOverseer, withtheparticipationofECB. The primaryoversight responsibility forSTEP2CCisentrustedtothe 3 OversightofSTEP2C ard Clearing SIPS. Anannualplanfortheseoversight EBA

EBA CLEARING Annual Report 2018 80 104 Oversight of the Payment Systems • • • (CROE) inDecember2018.TheCROEprovides: To thiseffect, theECBissuedCyberResilienceOversightExpectations proach forassessingtheFMIswithintheirjurisdictionagainstGuidance. apply theGuidanceimmediately, andoverseersdevelopedanoversightap- to alltypesofFMIs. Council on 3June2013fortheconductof Eurosystem oversight in relation been developedtosupplementthePFMIsadoptedbyECBGoverning tures waspublishedbytheCPMI-IOSCOinJune2016.TheGuidancehas The globalGuidanceonCyberResilienceforFinancialMarketInfrastruc- 5 Eurosystem cyberresilience strategy 2018 forRT1 cable PrinciplesforOtherRetailPaymentSystemswascompletedduring A comprehensive oversightassessmentagainstcompliancewiththeappli- Overseer. changes wouldattractanexanteorpostfactoassessmentfrom the advised totheECBinviewofaclassification todeterminewhetherthe and Since 2018, regular formal oversight meetings take place between the cable. Therefore, theoversightstandards forORPSare applicabletoRT1 Other Retail Payment System and to date, this classification remains appli- Prior tothego-liveinNovember2017,RT1 with participationbyEurosystem centralbanks. The primary oversight responsibility for 4 OversightofRT1

overseers. a basisformeaningfuldiscussionbetweentheFMI s andtheirrespective responsible; and Overseers withclearexpectationstoassesstheFMIsforwhichtheyare FMIs withdetailedstepsonhowtooperationalisetheGuidance; EBA CLEARING.Upcomingchangesinrelation totheRT1 Systemare . FMIs were required from anoversightperspectiveto RT1 hasbeen assigned to the ECB, Systemwasclassifiedas ECB .

EBA CLEARING Annual Report 2018 81 104 EBA CLEARING’s Subsidiary PRETA 40 financialinstitutionsand industryserviceproviders. PRETA delivered therepository inJanuary2019withthesupport ofover count requirements of the revised PaymentServicesDirective service providers andtheirserviceproviders in meetingaccess-to-ac- Europe. Thedirectory isaimed at supportingaccount-servicingpayment tities thatare authorisedtoperformaccess-to-account servicesacross tory, apan-European, centralisedandmachine-readable repository foren- In April2019,PRETA launchedtheonboarding process foritsOBEdirec- period underreport, particularlyinItalyandGreece. initiative. MyBankkeptincreasing itsmarket penetrationthroughout the been seeingapositiveengagementinitsOpenBankingEurope (OBE) growth initsMyBankServicesthroughout 2018andearly2019has year 2018showedforthefirsttimeaprofit. PRETA witnessedasteady evolution ofitsfully-ownedsubsidiary, PRETA S.A.S.,whichforthefiscal During theperiodunderreport, EBACLEARINGtooknoteofthepositive Subsidiary PRETASubsidiary EBA CLEARING’s (PSD2).

EBA CLEARING Annual Report 2018 82 104 Financial Situation: Statutory Accounts Statutory Accounts* Financial Situation: Revenues fees Other Transaction fees Fixed fees Profi t&LossStatement The revenues increased byEUR2M(+2.9%vs2017),totalling69.4M. Overview ofrevenues * are section tablesinthis All ineuro (EUR)thousand, are (M). (K)andmillions usedforthousands based onrounded fi gures;the text,abbreviations in per unit. mance, whichinvolvedafurtherdecrease oftheCompany’s averagecosts 2018 results testifytoEBACLEARING’s continuingsolidbusinessperfor- cover GeneralBusinessRisk,asforeseen undertheSIPSRegulation.The (compared toEUR14.2Min2017)andcontinuesfulfi litsobligationsto The Companyfurtherimproved its cash position in 2018toEUR16.1M before consolidationofEUR3.2M. EBA CLEARINGcompletedthefi scalyear2018withapositivenet result 7406,8 1,957 67,430 69,387 46,696 478 18,327 18,805 2,406 2017 47,903 2,678 08 2018 vs2017 2018 1,207 272

EBA CLEARING Annual Report 2018 83 104 Financial Situation: Statutory Accounts trative feesrelated toprovisioning, joiningandexit fees. increase ofEUR272Kcompared to2017.Otherfeesare one-off adminis- The otherfeerevenues amountedtoEUR2.7M,whichcorresponds toan which wasslightlyoffset byasmallreduction oftraffi cinEURO1(–1%). from asolidtraffi cgrowth intheSTEP2SEPA andCCServices(+6.6%), crease ofEUR1,207Kcompared to2017(+2.5%).This increase came The transactionfeerevenues amountedtoEUR47.9M,whichisanin- the ramp-up ofRT1 participationandafurtherincrease inparticipantsjoining EUR 478Kcompared to2017.Thisgrowth wasmostlycausedbythe The fi xedfee revenues amountedtoEUR18.8M,whichisanincrease of service participationandvolumegrowth. The revenues continuedtodeveloppositivelyin2018,dueincreased STEP2 SEPA Services.Thefi xed stable. revenues forEURO1remained EBA CLEARING Annual Report 2018 84 104 Financial Situation: Statutory Accounts Gross margin – Direct costs Revenues Profi t&LossStatement The gross margin decreased byEUR1.1M(– 4.6% vs2017),totallingEUR22.6M. Gross margin Direct costs chargesOther chargesOperating Profi t&LossStatement The direct costsincreased byEUR3M(+6.9%vs2017),totalling46.8M. Overview ofdirect costs tioned traffi candparticipationgrowth inthe respective STEP2Services. the fi rstfullyearofoperationsthe RT1 Serviceaswell astheabove-men- The evolutionofthegross margin isinlinewithexpectations,considering platform. crease by The othercharges amountedtoEUR3.8M,whichcorresponds toanin- ing mainly increased due to the expected costs for the fi rst full yearof operat- tion costsincreased inlinewiththe2018STEP2traffi cgrowth. Fixedcosts which represents an increase of The services-related charges from providers amountedtoEUR43M, RT1 . EUR 253 K, mainlydue to the start of depreciation of the 23,653 43,777 43,777 1,957 67,430 69,387 0134,6 2,780 40,183 42,963 3,594 2017 2017 EUR 2.8 M compared to 2017. Transac- 22,576 46,810 46,810 3,847 08 2018 vs2017 2018 08 2018 vs2017 2018 (1,077) 3,033 3,033 RT1 253

EBA CLEARING Annual Report 2018 85 104 Financial Situation: Statutory Accounts (FTEs) FTEs atyear-end FTEs Average annualFTEs Equivalents ofFull-Time Evolution Operating costs Operating expenses,revenuesOther Rent, premises, maint.&cleaning Equipment, services Consultancies relations External Human resources Profi t&LossStatement Overview ofEBACLEARINGresources The operatingcostsincreased byEUR1.1M(+6.8%vs2017),totalling17.1M. costs Overview ofoperating sultancies. Thisledtoaslowergrowth infull-timestaff thanexpected. ble, covered specialisedresourcing needsinsupportareas through con- operating costs in line with business growth, the Company, where possi- In accordance withitscontinuingefforts tokeepthedevelopmentofits 15,980 0961,7 220 10,956 11,176 2,194 2017 2017 738. 4 77.3 81.0 423 731 768 835 1,603 841 82 17,072 2,187 08 2018 vs2017 2018 08 2018 vs2017 2018 506 755 845 82 1,092 83 24 (7) 0 4 EBA CLEARING Annual Report 2018 86 104 Financial Situation: Statutory Accounts at The cashfl owgeneratedbytheCompany’s activitiesin2018washealthy Cash ﬂ ow Overview from gross margin tonetresult mriain/Dp./Poiinrvra +– 2,174 /Depr.Amortisation /Provision reversal (+/–) beforeResult consolidation Cash FlowStatement Cash ﬂ owfrom activities operating Net result before consolidation – Incometaxesandparticipation revenue,– Exceptional expense beforeEarnings taxes costs – Operating Gross margin Profi t&LossStatement EUR 5.9M(vs6.5in2017). to 1.67. quick liquidityratio(Cash & Receivables/PayablesProvisions) from 1.52 investments and ongoing efforts with regard to improving the Company’s continuous growth ofcashfrom operatingactivities, alimitedincrease of from The netcashpositionofEBACLEARINGcontinuedtostrengthen, rising 2018, resulting inanetincomebefore consolidationofEUR3.2M. The estimatedincometaxandparticipationitemstandsatEUR2.3Mfor margin decrease andoperatingcostsincrease. sents adecrease ofEUR2.2Mcompared to2017,resulting from gross before taxes(EBT)amountedtoEUR5.5M,whichrepre-The earnings EUR 14.2Min2017to16.1attheendof2018thanksa 23,653 15,980 4,320 6,494 4,320 7,673 2,791 2017 2017 562 22,576 17,072 5,951 5,505 3,194 3,194 2,758 2,311 08 2018 vs2017 2018 08 2018 vs2017 2018 0 (1,077) (1,126) (2,168) (1,126) 1,092 (543) (480) (562) 584

EBA CLEARING Annual Report 2018 87 104 Financial Situation: Statutory Accounts Statutory balancesheet without consolidatedassetsandliabilities eanderig hrhles qiy 20,402 &shareholders’Retained earnings equity Equity Provision forriskandliabilities Payables Liabilities Liabilities Total assets 509 Intangible fi xed assets–underconstruction Tangible fi xed assets Intangible fi xed assets Fixed assets Total liabilities year ofthe Result Current assets Total fi xedassets Total current assets Receivables Cash position Assets Financial fi xed assets Tangible fi xed assets–underconstruction Net value 44,782 44,782 14,306 30,476 9171,0 584 19,117 19,701 6261,5 1,758 16,296 18,054 14,180 4722,1 3,194 24,722 27,916 4,320 5,679 7,541 2017 2017 943 485 92

Net value 48,351 48,351 14,214 (92) 34,137 3,661 16,083 24,722 3,194 5,688 7,790 08 2018 vs2017 2018 08 2018 vs2017 2018 411 302 735 23

Net value (1,126) 3,569 3,569 4,320 1,903 (208) (207) 249 (69) (74) 9

EBA CLEARING Annual Report 2018 88 104 Financial Situation: Statutory Accounts RT1 Service. sumed bythefundinginstitutionsincomingyearsasusagerights in 2016and2017related totheinstantpaymentproject, whichistobecon- ing Accounts payable as of 31 December 2018 amounted to Payables be splitbyduedateasfollows: Accounts receivable asof31December2018,amountingtoEUR18M,may Receivables Number ofinvoices in KEUR Suppliers in KEUR payables Other

Payables

Number ofinvoices in KEUR Customers in KEUR receivablesOther

Receivables

EUR 4.9Mlinkedtotheremaining liabilityattheendofyearcollected January 2019

/ /

Other purchases expenses Other andexternal Providers Due now

/ 15,819 Revenues 3,470 1,103 Due in 1,744 97 % 23 % 25% 301 9% 54

December 2018 January 2019 1,227 Due in Due in 6 % 2 % 0 % 0 % 76 76 – 8 –

November 2018 February 2019 1,706 Due in Due in 9 % 3 % 0 % 0 % 6 –

2 1 –

EUR 19.7 M, includ- October 2018 March 2019 7,195 Due in Due in 37 % 14 % 2 % 1 % 407 15 3 – – Total Receivables

oa Payables Total October 2018 March 2019 Due before Due after 4,900 25 % 10 % 100 0 % 0 % 3 1 – 7

19,701 18,054 11,331 16,310 100 % 100 % 8,370 1,744 26 % 39 % Total Total 329 140

EBA CLEARING Annual Report 2018 89 104 Financial Situation: Statutory Accounts period underreport toretained earnings. holders. Itisproposed tomaintainthispolicyandallocatetheresult ofthe Since thecreation oftheCompany, nodividendshavebeenpaidtoShare- reached The equitypositionofEBACLEARINGbefore consolidationwithPRETA ofresultAllocation year ofthe EUR 27.9Mwithanetresult ofEUR3.2M. EBA CLEARING Annual Report 2018 View of the Vanšu Bridge crossing the Daugava river in Riga 90 104 Appendices

EBA CLEARING Annual Report 2018 91 104 Appendices Appendices EBA CLEARING Annual Report 2018 92 104 Appendices DZ BANKAG DNB BankASA Deutsche BankAG Danske BankA/S Crédit AgricoleS.A. Commerzbank AG Citibank Europe Plc CaixaBank S.A. BPCE BNP ParibasS.A. Barclays BankPlc Luxembourg S.A. Banque Internationaleá Mutuel Banque FédérativeduCrédit l’Etat, Luxembourg Banque etCaissed’Epargne de Bank ofAmericaN.A. Banco SantanderS.A. Banco deSabadellS.A. Banco Comercial PortuguêsS.A. Banco BPMS.p.A. S.A. Banco BilbaoVizcaya Argentaria S.p.A. Banca MontedeiPaschidiSiena Alpha BankA.E. Allied IrishBanksPlc ABN AMROBankN.V. Status: 31May2019 Shareholders CLEARING List ofEBA 1 Appendix

(49Shareholders) UniCredit S.p.A. UBS AG Swedbank AB Svenska HandelsbankenAB Standard Chartered BankAG Société Générale Skandinaviska EnskildaBankenAB Raiffeisen BankInternationalAG Rabobank Nederland OTP BankPlc. OP CorporateBankPlc Novo Banco,S.A. Nordea BankAbp National Westminster BankPlc National BankofGreece S.A. MUFG Bank,Ltd. Girozentrale Landesbank Hessen-Thüringen Landesbank Baden-Württemberg KBC BankN.V. JPMorgan ChaseBankN.A. Intesa SanpaoloS.p.A. ING BankN.V. HSBC France Eurobank Ergasias S.A. ERSTE Group BankAG

EBA CLEARING Annual Report 2018 93 104 Appendices Banque d’Escompte Bankinter SA Frankfurt Branch The BankofNewYork Mellon, Bank ofAmericaN.A.,Frankfurtbranch Bank ofÅlandPLC Bank GPBInternationalS.A. Bank fürTirol undVorarlberg AG Banco SantanderS.A. Banco deSabadellS.A. Banco Comercial PortuguêsS.A. Banco BPMS.p.A. Banco BilbaoVizcaya Argentaria S.A. Banco BAIEuropa SA Banca SellaS.p.A. Banca Popolare diSondrio Banca Popolare delLazio Banca MontedeiPaschidiSienaS.p.A. Banca diImolaS.p.A. Banca delFucino Alpha BankAE Bank AG Allgemeine SparkasseOberösterreich Aktia BankPLC Allied IrishBanks,p.l.c. ABN AMROBankN.V. ABANCA CorporaciónBancariaS.A. Status: 31May2019 inEURO1/STEP1 List ofParticipants 2 Appendix Santander UKPlc Santander ConsumerBankAG Banco SantanderTotta, SA Banca Popolare diMilanoS.p.A. MPS Leasing&FactoringS.p.A. Banca WidibaSpA First Trust Bank Allied IrishBankPlc(GB)

STEP1 Bank STEP1 Bank STEP1 Bank EURO1 Participant STEP1 Bank STEP1 Bank STEP1 Bank EURO1 Sub-Participant EURO1 Sub-Participant EURO1 Sub-Participant EURO1 Participant EURO1 Participant EURO1 Participant EURO1 Sub-Participant EURO1 Participant EURO1 Participant STEP1 Bank STEP1 Bank STEP1 Bank STEP1 Bank EURO1 Sub-Participant EURO1 Sub-Participant EURO1 Participant STEP1 Bank STEP1 Bank EURO1 Participant STEP1 Bank STEP1 Bank EURO1 Sub-Participant EURO1 Sub-Participant EURO1 Participant EURO1 Participant STEP1 Bank Banque et Caisse d’Epargne de l’Etat EURO1 Participant Emirates NBD PJSC STEP1 Bank Banque Internationale à Luxembourg S.A. EURO1 Participant ERSTE Group Bank AG EURO1 Participant Banque Michel Inchauspé – BAMI STEP1 Bank Eurobank Ergasias S.A. EURO1 Participant Banque Palatine STEP1 Bank Hellenic Bank Public Company Ltd. STEP1 Bank Barclays Bank Ireland Plc, Frankfurt branch EURO1 Participant HSBC France EURO1 Participant Berliner Sparkasse – Landesbank Berlin AG STEP1 Bank ICCREA Banca STEP1 Bank BKS Bank AG STEP1 Bank ING Bank NV EURO1 Participant BNP Paribas S.A. EURO1 Participant Bank Mendes Gans N.V. EURO1 Sub-Participant Banca Nazionale del Lavoro S.p.A. EURO1 Sub-Participant ING Bank NV, France EURO1 Sub-Participant BGL BNP Paribas EURO1 Sub-Participant ING Bank Śląski S.A. EURO1 Sub-Participant BNP Paribas Fortis EURO1 Sub-Participant ING Belgium N.V./S.A EURO1 Sub-Participant BPCE EURO1 Participant ING Luxembourg S.A. EURO1 Sub-Participant BRED Banque Populaire EURO1 Sub-Participant Intesa Sanpaolo S.p.A. EURO1 Participant NATIXIS EURO1 Sub-Participant Intesa Sanpaolo Bank Luxembourg S.A. EURO1 Sub-Participant BPER Banca S.p.A. STEP1 Bank Joh. Berenberg, Gossler und Co. KG STEP1 Bank CaixaBank S.A. EURO1 Participant J.P. Morgan AG EURO1 Participant Caixa Central de Crédito Agrícola Mútuo STEP1 Bank J.P. Morgan Bank (Ireland) Plc EURO1 Sub-Participant Cassa di Risparmio di Fermo S.p.A. STEP1 Bank J.P. Morgan Bank Luxembourg S.A. EURO1 Sub-Participant Cassa di Risparmio di Ravenna S.p.A. STEP1 Bank KBC Bank N.V. EURO1 Participant CECABANK, S.A. STEP1 Bank Kookmin Bank London Branch STEP1 Bank Caja de Ahorros y Monte de Piedad STEP1 Sub-Participant La Banque Postale STEP1 Bank de Ontinyent STEP1 Sub-Participant Caja Laboral Popular, Coop. de Crédito STEP1 Bank Colonya Caixa Pollença Landesbank Hessen-Thüringen EURO1 Participant Liberbank, S.A. STEP1 Sub-Participant Mashreq Bank psc STEP1 Bank Unicaja Banco, S.A. STEP1 Sub-Participant MUFG Bank, Ltd., Paris branch EURO1 Participant Citibank Europe Plc EURO1 Participant National Bank of Greece S.A. EURO1 Participant Commerzbank AG EURO1 Participant National Westminster Bank Plc EURO1 Participant Crédit Agricole S.A. EURO1 Participant National Westminster Bank Plc EURO1 Sub-Participant CA-CIB – Crédit Agricole Corporate and EURO1 Sub-Participant Royal Bank of Scotland Plc EURO1 Sub-Participant Investment Bank EURO1 Sub-Participant Nordea Bank Abp EURO1 Participant Crédit Agricole CariParma SpA Oberbank AG STEP1 Bank Crédit Agricole CariSpezia SpA EURO1 Sub-Participant OP Corporate Bank Plc EURO1 Participant Crédit Agricole Friuladria SpA EURO1 Sub-Participant OTP Bank Plc. EURO1 Participant Crédit Lyonnais EURO1 Sub-Participant Rabobank Nederland EURO1 Participant Crédit Mutuel – CIC Banques EURO1 Participant Raiffeisen Bank International AG EURO1 Participant Crédit Industriel et Commercial EURO1 Sub-Participant Raiffeisenlandesbank Oberösterreich AG STEP1 Bank Crédit Mutuel Arkéa STEP1 Bank Raiffeisen-Landesbank Tirol AG STEP1 Bank Credito Valtellinese STEP1 Bank SECB Swiss Euro Clearing Bank GmbH STEP1 Bank Danske Bank A/S EURO1 Participant Northern Bank Ltd EURO1 Sub-Participant (trading as Danske Bank) Deutsche Bank AG EURO1 Participant DB Privat- und Firmenkundenbank AG EURO1 Sub-Participant DNB Bank ASA, Filial Finland EURO1 Participant DNB Bank ASA, Norway EURO1 Sub-Participant DZ BANK AG EURO1 Participant 104 Appendices 104 Appendices EBA CLEARING Annual Report 2018 95 EBA CLEARING Annual Report 2018 94 Skandinaviska Enskilda Banken EURO1 Participant Appendix 3 AS SEB Pank, Estonia EURO1 Sub-Participant List of Direct Participants in STEP2-T SEB Banka, Latvia EURO1 Sub-Participant Status: 31 May 2019 Skandinaviska Enskilda Banken S.A., EURO1 Sub-Participant Luxembourg Skandinaviska Enskilda Banken, EURO1 Sub-Participant Denmark Société Générale EURO1 Participant Banque de Luxembourg DB Privat- und Firmenkundenbank Crédit du Nord EURO1 Sub-Participant STEP2 SCT Banque Eni S.A. AG (Postbank) Sparekassen Sjælland STEP1 Bank ABN AMRO Bank N.V. Banque et Caisse d’Epargne De Nederlandsche Bank N.V. Standard Chartered Bank AG EURO1 Participant Adyen B.V. de l’Etat DEPObank – Banca Depositaria Svenska Handelsbanken EURO1 Participant Aktia Bank Plc Banque Internationale Italiana SpA Handelsbanken, Denmark EURO1 Sub-Participant Allied Irish Banks, Plc à Luxembourg S.A. Deutsche Bank AG Handelsbanken, Norway EURO1 Sub-Participant Alpha Bank Cyprus Ltd Barclays Bank Ireland Plc Deutsche Bundesbank Swedbank AB (publ.) EURO1 Participant Arbejdernes Landsbank A/S Barclays Bank Plc DNB Bank ASA Swedbank AB, Lithuania EURO1 Sub-Participant AS LHV Pank Barclays Bank UK Plc DZ BANK AG Swedbank AS, Estonia EURO1 Sub-Participant AS SEB Pank Belfius Bank SA/NV Elavon Financial Services Limited Swedbank AS, Latvia EURO1 Sub-Participant Banca Carige SpA BGL BNP Paribas ERSTE Group Bank AG UBS Europe SE, Germany EURO1 Participant Banca d’Italia BNP Paribas Fortis SA/NV First Investment Bank AD UniCredit S.p.A. EURO1 Participant Banca Monte dei Paschi BNP Paribas S.A. Hellenic Bank Public Company Ltd UniCredit Bank AG (Hypovereinsbank) EURO1 Sub-Participant di Siena SpA Bonum Bank Plc HSBC Bank Plc UniCredit Bank Austria AG EURO1 Sub-Participant Banca Popolare di Sondrio SCPA BPCE HSBC France Banca Sella Holding SpA bpost SA de droit public HSBC UK Bank Plc Banco Bilbao Vizcaya bpost Bank N.V.-S.A. ICCREA Banca SpA – Istituto Argentaria S.A. BRED Banque Populaire Centrale del Credito Coop. Banco BPI S.A. Bunq B.V. ING Bank NV Banco BPM SpA Caixa Central de Crédito ING Belgium NV-SA Banco Comercial Português S.A. Agrícola Mútuo ING Luxembourg SA Banco Cooperativo Caixa Geral de Depósitos S.A. Intesa Sanpaolo SpA Banco de España CaixaBank S.A. J.P. Morgan AG Banco de Sabadell S.A. Cassa Centrale Banca – Credito Jyske Bank AS Banco Popular Español S.A. Cooperativo Italiano SpA KBC Bank N.V. Banco Santander S.A. Cassa Depositi e Prestiti SpA Klarna Bank AB (publ) Banco Santander Totta S.A. CECABANK S.A. Københavns Andelskasse Bank of Aland Plc Central Bank of Savings Banks La Banque Postale Bank of America, NA, Finland Plc Lån & Spar Bank A/S Frankfurt Branch Citibank Europe Plc Landesbank Baden-Württemberg Bank of Cyprus Public Company Ltd Clydesdale Bank Plc Landesbank Hessen-Thüringen Bank of Greece S.A. Commerzbank AG (HELABA) Bank of Ireland Crédit Agricole S.A. Latvijas Banka Bank of Slovenia – Banka Slovenije Crédit Agricole Italia SpA Lietuvos Bankas – Bank of Lithuania Bankia S.A. Crédit Mutuel Arkéa Lloyds Bank Plc Bankinter S.A. Crédit Mutuel – CIC Banques Medirect Bank (Malta) plc Banque de France Credit Suisse (Schweiz) AG Credito Emiliano SpA Danske Bank A/S 104 Appendices 104 Appendices EBA CLEARING Annual Report 2018 97 EBA CLEARING Annual Report 2018 96 MUFG Bank, Ltd., Paris Branch STEP2 SDD CORE Caixa Geral de Depósitos S.A. MUFG Bank, Ltd, Paris Branch Banco Santander Totta S.A. HSBC France Narodowy Bank Polski – National CaixaBank S.A. National Bank of Slovakia – Bank of America, NA, Frankfurt ICCREA Banca SpA – Istituto Bank of Poland ABN AMRO Bank N.V. Cassa Centrale Banca – Credito Národná Banka Slovenska Branch Centrale del Credito Coop. National Bank of Slovakia – Aktia Bank Plc Cooperativo Italiano SpA National Westminster Bank Plc Bank of Greece S.A. ING Bank NV Národná Banka Slovenska Allied Irish Banks, Plc Cassa Depositi e Prestiti SpA Nordea Bank Abp Bank of Slovenia – Banka Slovenije ING Belgium NV-SA National Westminster Bank Plc Banca Carige SpA CECABANK S.A. Novo Banco S.A. Bankia S.A. ING LUXEMBOURG S.A. Nordea Bank Abp Banca d’Italia Central Bank of Savings Banks Oesterreichische Nationalbank Banque de France Intesa Sanpaolo SpA Novo Banco S.A. Banca Generali SpA Finland Plc OP Corporate Bank Plc. Banque de Luxembourg J.P. Morgan AG Oesterreichische Nationalbank Banca Monte dei Paschi di Citibank Europe Plc Rabobank Nederland Utrecht Banque Eni S.A. KBC Bank N.V. OP Corporate Bank Plc. Siena SpA Commerzbank AG Raiffeisen Bank International AG Banque et Caisse d’Epargne La Banque Postale OTP Bank Plc. Banca Popolare di Sondrio SCPA Crédit Agricole S.A. Raiffeisen Landesbank Südtirol AG de l’Etat Landesbank Baden-Württemberg Rabobank Nederland Utrecht Banco Bilbao Vizcaya Argentaria Crédit Agricole Italia SpA Santander Consumer Bank AG Banque Internationale Landesbank Hessen-Thueringen Raiffeisen Bank International AG S.A. Crédit Mutuel – CIC Banques S-Bank Ltd. à Luxembourg S.A. (HELABA) Raiffeisen Landesbank Südtirol AG Banco BPI S.A. Crédit Mutuel Arkéa SECB Swiss Euro Clearing Bank Barclays Bank Ireland Plc Lloyds Bank Plc RCB Bank Ltd Banco BPM SpA Credit Suisse (Schweiz) AG GmbH Barclays Bank Plc MUFG Bank, Ltd, Paris Branch S-Bank Ltd Banco Comercial Português SA Credito Emiliano SpA Skandinaviska Enskilda Banken AB Barclays Bank UK Plc National Bank of Slovakia – Santander Consumer Bank AG Banco Cooperativo Danske Bank A/S (publ) Belfius Bank SA/NV Národná Banka Slovenska SECB Swiss Euro Clearing Bank Banco de Sabadell S.A. DB Privat- und Firmenkundenbank Société Générale BGL BNP Paribas National Westminster Bank Plc GmbH Banco Popular Español S.A. AG (Postbank) Spar Nord Bank A/S BNP Paribas Fortis SA/NV Nordea Bank Abp Skandinaviska Enskilda Banken AB Banco Santander S.A. De Nederlandsche Bank N.V. Standard Chartered Bank AG BNP Paribas S.A. Novo Banco S.A. (publ) Banco Santander Totta S.A. DEPObank – Banca Depositaria Svenska Handelsbanken AB BPCE Oesterreichische Nationalbank Skandinaviska Enskilda Banken Bank of America, NA, Frankfurt Italiana SpA UBS Europe SE BPER Banca SpA Rabobank Nederland Utrecht S.A., Luxembourg Branch Deutsche Bank AG UniCredit Bank AG bpost SA de droit public Raiffeisen Bank International AG Société Générale Bank of Greece S.A. Deutsche Bundesbank (HypoVereinsbank) BRED Banque Populaire Raiffeisen Landesbank Südtirol AG Société Générale Bank and Bank of Ireland DZ BANK AG UniCredit Bank Austria AG Bunq B.V. Santander Consumer Bank AG Trust S.A. Bank of Slovenia – Banka Slovenije Elavon Financial Services Limited UniCredit SpA Caixa Central de Crédito Agrícola SECB Swiss Euro Clearing Bank Spar Nord Bank AS Bankia S.A. ERSTE Group Bank AG Unione di Banche Italiane SpA Mútuo GmbH Sparekassen Kronjylland Banque de France HSBC Bank Plc Caixa Geral de Depósitos S.A. Skandinaviska Enskilda Banken AB Sparkasse Bank Malta Plc Banque de Luxembourg HSBC France CaixaBank S.A. (publ) Standard Chartered Bank AG Banque Eni S.A. HSBC UK Bank Plc STEP2 SDD B2B Cassa Centrale Banca – Credito Société Générale Svenska Handelsbanken AB Banque et Caisse d’Epargne ICCREA Banca SpA- Istituto Cooperativo Italiano SpA Spar Nord Bank A/S Swedbank AB (publ) de l’Etat Centrale del Credito Coop. ABN AMRO Bank N.V. Cassa Depositi e Prestiti SpA Svenska Handelsbanken AB Sydbank A/S Banque Internationale à ING Bank NV Banca 5 SpA CECABANK S.A. UBS Europe SE The Royal Bank of Scottland Plc Luxembourg S.A. ING Belgium NV-SA Banca Carige SpA Citibank Europe Plc UniCredit Bank AG UBS AG Barclays Bank Ireland Plc ING LUXEMBOURG S.A. Banca d’Italia Commerzbank AG (HypoVereinsbank) UBS Europe SE Barclays Bank Plc Intesa Sanpaolo SpA Banca Generali SpA Crédit Agricole S.A. UniCredit Bank Austria AG UBS Switzerland AG Barclays Bank UK Plc J.P. Morgan AG Banca Monte dei Paschi di Crédit Agricole Italia SpA UniCredit SpA UniCredit Bank AG Belfius Bank SA/NV KBC Bank N.V. Siena SpA Crédit Mutuel – CIC Banques Unione di Banche Italiane SpA (HypoVereinsbank) BGL BNP Paribas Klarna Bank AB (publ) Banca Popolare di Sondrio SCPA Crédit Mutuel Arkéa UniCredit Bank Austria AG BNP Paribas Fortis SA/NV La Banque Postale Banco Bilbao Vizcaya Argentaria Credit Suisse (Schweiz) AG UniCredit SpA BNP Paribas S.A. Landesbank Baden-Württemberg S.A. Credito Emiliano SpA Bonum Bank Plc Landesbank Hessen-Thüringen Banco BPI S.A. Danske Bank A/S BPCE (HELABA) Banco BPM SpA DB Privat- und Firmenkundenbank BPER Banca SpA Lietuvos Bankas – Bank of Lithuania Banco Comercial Português SA AG (Postbank) bpost SA de droit public Lloyds Bank Plc Banco Cooperativo De Nederlandsche Bank N.V. bpost Bank N.V.-S.A. Banco de Sabadell S.A. DEPObank – Banca Depositaria BRED Banque Populaire Banco Popular Español S.A. Italiana SpA Bunq B.V. Banco Santander S.A. Deutsche Bank AG Caixa Central de Crédito Deutsche Bundesbank Agrícola Mútuo DZ BANK AG

104 Appendices 104 Appendices ERSTE Group Bank AG EBA CLEARING Annual Report 2018 99 EBA CLEARING Annual Report 2018 98 Appendix 4 Appendix 5 Appendix 6 List of Direct Participants List of Direct Participants Annual Accounts for 2018 in STEP2 CC in RT1 Status: 31 May 2019 Status: 31 May 2019

STEP2 CC RT1 ERSTE Group Bank AG The annual accounts for 2018 FinecoBank Spa (and for 2017) Citibank Europe Plc ABN AMRO Bank N.V. Hanseatic Bank GmbH & Co KG are attached separately. Commerzbank AG AS LHV Pank Intesa Sanpaolo S.P.A. DB Privat- und Firmenkunden- AS SEB Pank J.P. Morgan AG bank AG (Postbank) BANCO BPM S.p.A. Landesbank Baden-Wuerttemberg Deutsche Bank AG Banca Patrimoni Sella & C. S.p.A. Landesbank Hessen-Thueringen Landesbank Hessen-Thüringen Banca Popolare di Sondrio Latvijas Banka (HELABA) Banca Sella Holding S.p.A. Lietuvos bankas Santander Consumer Bank AG Banca Sella S.p.A. Nordea Bank Abp UniCredit Bank AG Banco Bilbao Vizcaya Argentaria OP Corporate Bank Plc (HypoVereinsbank) S.A. Raiffeisenbank International AG Banco Sabadell S.A. Raiffeisenlandesbank Ober Banco Santander S.A. oesterreich AG Bankia S.A. Santander Consumer Bank AG Banca Nazionale del Lavoro S.p.A. Svenska Handelsbanken AB (publ) Bonum Bank Plc Swedbank AB BRED Banque Populaire Swedbank AS Bunq B.V. TeamBank AG Caixabank S.A. UniCredit Bank AG Central Bank of Savings Banks (HypoVereinsbank) Finland Plc UniCredit S.p.A. Commerzbank AG Coop Pank aktsiaselts Credit Agricole Cariparma S.p.A. Crédit Mutuel Arkéa Danske Bank A/S, Finland Branch DEPObank – Banca Depositaria Italiana SpA Deutsche Bank AG DZ BANK AG 104 Appendices 104 Appendices EBA CLEARING Annual Report 2018 101 EBA CLEARING Annual Report 2018 100 Panorama view of Madrid

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