The EKS is the Bank of Latvia's net settlement system, which is used to process bulk retail payments and provide the settlement of net positions. The EKS is a SEPA-compliant system enabling its participants to send and receive euro payments within the SEPA area. The EKS has several clearing cycles per business day.
The description is informational. Participation and processing of payment orders are governed by the "System Rules for Participation in the EKS" and "Functional Specification of the EKS".
The following entities are eligible for direct participation in the EKS:
- a credit institution incorporated in the European Economic Area (hereinafter, the EEA), including where it acts through a branch incorporated in the EEA;
- a credit institution incorporated outside the EEA, provided that it acts through a branch incorporated in the EEA;
- a national central bank of an EU Member State.
- a treasury department of a central or regional government of an EU Member State active in the money markets;
- a public sector body of the EU Member States authorised to hold accounts for customers;
- an investment firm incorporated in the EEA;
- an entity managing ancillary systems and acting in the above capacity.
To join the EKS, an applicant participant shall act as follows:
- adhere to the SEPA Credit Transfer Scheme developed by the European Payments Council;
- become a TARGET2 participant;
- send a letter to the Bank of Latvia applying for participation in the EKS;
- receive the Bank of Latvia's decision about the rights to become a participant in the EKS where necessary;
- conclude an agreement on the participation in the EKS with the Bank of Latvia;
- submit static data collection forms of the EKS and TARGET2 and furnish a list of contact persons for the relevant tests;
- submit an application for indirect participation in STEP2 and RPS SEPA Clearer whereby the applicant participant agrees to use the services of Deutsche Bundesbank, should it choose to receive all incoming SEPA payments in the EKS;
- conclude an agreement "On Digital Signing" with the Bank of Latvia (except where such an agreement has already been concluded with respect to a participation in other Bank of Latvia's systems) and perform the registration of the involved users subject to the Bank of Latvia's instructions;
- perform preliminary technical activities and tests in line with the Bank of Latvia's instructions;
- conduct business continuity tests pursuant to the Bank of Latvia's instructions;
- send a letter to the Bank of Latvia, specifying the tentative connection date;
- submit static data collection forms and furnish a list of contact persons for the settlement environment;
- receive a letter from the Bank of Latvia, specifying the date of launching the settlement in the EKS;
- commence participation in the EKS.