Requirements for participation
Any institution that has its own PM account on the TARGET2 platform can open a TIPS DCA. In addition, participation in the EPC’s SEPA Instant Credit Transfer Scheme is required. HAM account holders are also permitted to open TIPS DCAs, but must rely on a PM account holder to provide liquidity, as liquidity can only be transferred to TIPS accounts from PM accounts.
It is also possible to settle payments in TIPS without having an own TIPS account; to do so, an institution can be registered as a “reachable party” by a TIPS account holder. Payments from or for a reachable party are then settled on the TIPS account of the participant. To be registered as a reachable party, an institution is also not required to have their own TARGET2 account. The only requirements are that they can be reached in TIPS by means of their own business identifier code (BIC) and that they participate in the EPC’s SEPA instant credit transfer scheme. If necessary, the account holder can limit the use of the account by a reachable party by setting individual limits.
Both TIPS participants and reachable parties can either exchange messages directly with TIPS themselves or appoint a third party, known as an instructing party, to do so on their behalf. This could be, for example, a (different) participant, a technical service provider or a clearing house.
Directory of participants
TIPS participants are provided with a TIPS directory containing all BICs that can be reached via TIPS for the settlement of SCT Inst payments, and which is updated each business day.