ECB approves major settlement and collateral projects
08 December 2017 Brussels
Image: Shutterstock
The European Central Bank (ECB) has approved the combining of the real-time gross settlement system TARGET2 and the pan-European securities settlement platform TARGET2-Securities (T2S), in a bid to increase the efficiency of its value payments and collateral management.
The bank has also introduced the Eurosystem Collateral Management System (ECMS) to provide a platform for collateral operations across the eurozone.
According to ECB, the introduction of the two new programmes will modernise existing systems and increase overall efficiency.
The consolidated T2 and T2S system, expected to be launched in November 2021, will improve liquidity management procedures.
The ECMS will replace the existing systems of the 19 national central banks for those functions which can be harmonised until its launch, which is expected in November 2022. It is intended to allow for changes to the collateral framework to be implemented in a more harmonised way.
The Deutsche Bundesbank, the Banco de España, the Banque de France and the Banca d’Italia will act as service providers for the projects.
The bank has also introduced the Eurosystem Collateral Management System (ECMS) to provide a platform for collateral operations across the eurozone.
According to ECB, the introduction of the two new programmes will modernise existing systems and increase overall efficiency.
The consolidated T2 and T2S system, expected to be launched in November 2021, will improve liquidity management procedures.
The ECMS will replace the existing systems of the 19 national central banks for those functions which can be harmonised until its launch, which is expected in November 2022. It is intended to allow for changes to the collateral framework to be implemented in a more harmonised way.
The Deutsche Bundesbank, the Banco de España, the Banque de France and the Banca d’Italia will act as service providers for the projects.
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