Payment systems in

Germany

Germany

CPSS - Red Book - 2003 147

Table of contents

List of abbreviations............................................................................................................................. 149 1. Institutional aspects ................................................................................................................... 151

1.1 The general institutional framework ................................................................................ 151 1.1.1 Legal requirements and public bodies .................................................................. 151 1.1.2 Credit Transfer Act and other specific regulations relating to payment services 151

1.2 The role of the central bank ............................................................................................ 152 1.2.1 Oversight of payment systems ............................................................................. 152 1.2.2 Payment systems of the Deutsche Bundesbank .................................................. 152 1.2.3 Settlement ............................................................................................................. 153 1.2.4 Pricing policy......................................................................................................... 154

1.3 The role of other private and public institutions .............................................................. 154 2. Payment media used by non-banks .......................................................................................... 155

2.1 Cash payments ............................................................................................................... 155 2.2 Non-cash payments ........................................................................................................ 155

2.2.1 Credit transfers ..................................................................................................... 156 2.2.2 Cheques................................................................................................................ 156 2.2.3 Direct debits .......................................................................................................... 156 2.2.4 Card payments...................................................................................................... 157 2.2.5 Post office services ............................................................................................... 159

3. Interbank exchange and settlement systems............................................................................ 160 3.1 General overview ............................................................................................................ 160

Giro network of commercial banks.................................................................................. 160 Giro network of savings banks........................................................................................ 160 Giro network of credit cooperatives................................................................................. 160

3.2 RTGSplus .......................................................................................................................... 162 3.2.1 General overview .................................................................................................. 162 3.2.2 Participants ........................................................................................................... 163 3.2.3 Types of transaction handled................................................................................ 163 3.2.4 Transaction processing environment and liquidity control parameters ................ 164 3.2.5 Operation of the transfer system .......................................................................... 165 3.2.6 Credit and liquidity risk.......................................................................................... 165 3.2.7 Pricing ................................................................................................................... 165

3.3 The retail payment system RPS...................................................................................... 166 3.3.1 General overview .................................................................................................. 166 3.3.2 Participants ........................................................................................................... 166 3.3.3 Types of transaction.............................................................................................. 166 3.3.4 Processing environment ....................................................................................... 167

Germany

148 CPSS - Red Book - 2003

3.3.5 Credit and liquidity risk .......................................................................................... 167 3.3.6 Pricing ................................................................................................................... 167 3.3.7 Future trends ......................................................................................................... 167

3.4 Bilateral interbank clearing .............................................................................................. 168 3.5 Innovative payment procedures ...................................................................................... 168

3.5.1 E-banking and e-money ........................................................................................ 168 3.5.2 Other developments.............................................................................................. 168

4. Securities settlement systems ................................................................................................... 169 4.1 Trading............................................................................................................................. 169

4.1.1 Legal foundations of stock exchange trading........................................................ 169 4.1.2 Financial intermediaries engaged in the various securities markets .................... 169 4.1.3 Trading segments.................................................................................................. 169 4.1.4 XETRA .................................................................................................................. 170 4.1.5 Eurex 171 .............................................................................................................. 171 4.1.6 European Energy Exchange ................................................................................. 171 4.1.7 Recent developments ........................................................................................... 171 4.1.8 Supervision of trading in securities and derivatives and exchange supervision... 172

4.2 Clearing ........................................................................................................................... 173 4.3 Settlement........................................................................................................................ 173

4.3.1 Legal foundations for custody operations by banks.............................................. 173 4.3.2 Germanys central securities depository ............................................................... 174

4.4 The use of the securities infrastructure by the Deutsche Bundesbank........................... 176

Germany

CPSS - Red Book - 2003 149

List of abbreviations

AZV Cross-border payments procedure (via correspondent banks) - Auslandszahlungsverkehr BaFin German Federal Financial Supervisory Authority - Bundesanstalt fr

Finanzdienstleistungsaufsicht BBankG Bundesbank Act - Bundesbankgesetz BLZ Bank sort code - Bankleitzahl BrsG Stock Exchange Act - Brsengesetz BSE Paperless cheque collection procedure/cheque truncation - Belegloser Scheckeinzug BSI Federal Agency for Security in Information Technology - Bundesamt fr Sicherheit in der

Informationstechnik DEA Data input and output system - Daten-Eingabe- und -Ausgabe-System DTB German Futures and Options Exchange - Deutsche Terminbrse EADK Electronic order placing, data transmission and account information - Elektronische

Auftragserteilung, Datenauslieferung und Kontoinformation EAF Euro Access Frankfurt - Elektronische Abrechnung Frankfurt EDIFACT Electronic Data Interchange for Administration, Commerce and Transport EDM Electronic data media ELS Euro Link System - Elektronischer Schalter ELV Electronic direct debit system - Elektronischer Lastschriftverkehr EMZ Retail Payment System (see RPS) - Elektronischer Massenzahlungsverkehr Eurex European exchange (common futures and options market of the German and Swiss stock

exchanges) - Gemeinsamer Terminmarkt fr Finanzderivate der deutschen und schweizerischen Brse

FWB Frankfurt Stock Exchange - Frankfurter Wertpapierbrse GSE Large-value cheque collection procedure - Grobetrag-Scheckeinzugsverfahren GZS Payment transaction company for the German banking sector - Gesellschaft fr

Zahlungssysteme mbH HST Trading Supervision Authority - Handelsberwachungsstelle HVRZ High-availability computer centre - Hochverfgbarkeitsrechenzentrum ICS Information and control system - ISS; Informations- und Steuerungssystem KWG Banking Act - Kreditwesengesetz MaH Minimum requirements for the trading activities of credit institutions -

Mindestanforderungen an das Betreiben von Handelsgeschften MVS Multiple virtual storage (mainframe operating system) RPS Retail Payment System - Elektronischer Massenzahlungsverkehr (see EMZ) RTGSplus Real-time gross settlement system of the Deutsche Bundesbank with liquidity-saving

elements (also the German TARGET com