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TARGET2/T2S consolidation

TARGET2/TARGET2-Securities consolidation comprises the following elements.

  • Technical consolidation of TARGET2 and TARGET2-Securities
  • Consolidation and harmonisation of connectivity
  • Functional convergence
  • New RTGS services

The objective of the technical TARGET2/TARGET2-Securities consolidation is to achieve synergies between TARGET2 (T2) and TARGET2-Securities (T2S) through the efficient use of joint infrastructure components and to make the processes more automated so as to increase overall efficiency. Messages that comply with ISO 20022 are also to be used in TARGET2 services, IT security is to be optimised, and the infrastructure’s resilience to cyber attacks in particular is to be improved.

The consistent use of ISO 20022-compliant messages across the Eurosystem’s entire range of services ensures that communication occurs on the basis of the latest standards. The systematic use of ISO 20022-compliant messages follows an international trend.

With the introduction of a Central Liquidity Management (CLM) system, the participating banks receive an overview of their central bank liquidity and can flexibly and comfortably assign these to the individual settlement services. In addition, the new structure will make it possible in future to separate the settlement of central bank transactions from individual payments.

As part of the consolidation and harmonisation of connectivity, market participants are to be provided with a secure and uniform gateway to the Eurosystem’s financial market infrastructure (Eurosystem Single Market Infrastructure Gateway, or ESMIG). This standardised communication channel can be used not only for TARGET2 and TARGET2-Securities but also as a gateway to other (existing and future) services provided by the Eurosystem’s financial market infrastructure (eg TIPS). The concept used is that of multiple network service providers.

Functional convergence of TARGET2 and T2S allows the use of uniform technical solutions and harmonised connection and security components for payments and securities settlement. This reduces both investment and operating costs and thus increases efficiency.

At its meeting on 6 December 2017, the Governing Council of the ECB decided to realise the consolidation project.

Task force on future RTGS services (work completed)

In order to support the project initiatives, a working group was set up to discuss the user requirements for the consolidation project. Participants were TARGET2 users (representatives of banks and ancillary systems), representatives of the four central banks’ developer and operator consortium as well as other Eurosystem and ESCB central banks.

The documents of the working groups can be accessed via the link below ("meeting documentation").

Following the decision by the Governing Council of the ECB on 6 December 2017 to realise the project, the involvement of the market is to be continued.

TARGET Consolidation Contact Group (TCCG)

With the Governing Council’s decision of 6 December 2017 to launch the project realisation phase, the task force on future RTGS service’s work came to an end. In order to prepare the go-live of the TARGET2/T2S consolidation, the TARGET Consolidation Contact Group (TCCG) was established. The TCCG advises and supports the Eurosystem with regard to all activities needed for realizing the project which include e.g. the planning of user testing or migration. Moreover, the TCCG delivers subject-related contributions, supports in compiling key documents such as the User Detailed Functional Specifications (UDFS) or the User Handbook (UHB) and provides input on risks. This group comprises representatives from market participants (TARGET2 participants), central banks, the 4CB and the ECB. All meeting documents, other documentation and specifications processes by the TCCG are published on the ECB’s website and can be accessed via the link to “meeting documentation”.