The Governing Council of ECB approved the consolidation of the Eurosystem’s real-time gross settlement system TARGET2 and the securities settlement platform TARGET2-Securities (T2S), along with the development of a Eurosystem Collateral Management System. Both projects are intended to modernize the existing systems, increase overall efficiency, and facilitate integration of financial markets in Europe. Deutsche Bundesbank, Banco de España, Banque de France, and Banca d’Italia will act as service providers for both projects.
The TARGET2-T2S consolidation will provide market participants across the Eurosystem with enhanced liquidity management procedures. The consolidated system is expected to be launched in November 2021. This follows a public consultation in which market participants helped to define the user requirements. Additionally, the Eurosystem Collateral Management System (ECMS) will merge the existing systems of the 19 national central banks (for the functions that can be harmonized until the launch) into a harmonized single platform for collateral operations across the Eurosystem. The launch of ECMS is planned for November 2022.
Related Link: Press Release
Keywords: Europe, EU, Banking, Securities, PMI, TARGET2, Settlement Platforms, ECMS, Collateral Management, ECB
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