Within the RIX, the Riksbank's funds transfer system, the Riksbank provides an opportunity for banks and certain others (RIX participants) to settle payment commitments between themselves and to carry out other transfers.
The Riksbank's monetary policy is put into operation via its monetary policy counterparties. The legal relationship between the Riksbank and its counterparties (participants in RIX and monetary policy counterparties) is regulated in the Riksbank's "Terms and Conditions for RIX and Monetary Policy Instruments" ("the Terms and Conditions"). The Terms and Conditions contain a general description of RIX and the monetary policy instruments.
Where applicable, they constitute terms of agreement for the individual participants. The Conditions apply to RIX as well as to monetary policy instruments because these two systems are interconnected in a number of respects. The Riksbank's ability to influence the overnight interest rate ultimately depends on the Riksbank being in a position to set the terms and the extent of overnight deposits from and lending to the banks that are participants in RIX.
Moreover, the requirements concerning collateral in RIX are largely the same as those for monetary policy instruments. The Riksbank is striving for a further coordination of the collateral requirements in the two systems.
An application to participate in the RIX system should be addressed to the Riksbank. The Riksbank processes every application and if the institution is considered to meet the requirements for participation the institution signs an accession agreement with the Riksbank.
In addition, a grant of pledge is issued in case the institution intends to use a credit facility. Participants in the RIX system shall at the request of the Riksbank provide such information to the Riksbank on the participant's activities that the Riksbank considers necessary for correct application of the Terms and Conditions. Participants shall pay fees to the Riksbank in accordance with the price-list applied by the Riksbank.
The " Counterparty Application Instruction" are part of the Terms and Conditions and were formulated to facilitate the application process for institutions wishing to become RIX participants, monetary policy counterparties, primary monetary policy counterparties or counterparties in foreign exchange transactions.
"The Riksbank's reporting procedures for monetary policy counterparties and counterparties in foreign exchange transactions " describe what statistics the Riksbank expects from the applicant prior to, during and after a trial period.