Target Guideline Ecb

WEB Guideline EU 2022912: ECB Updates Ancillary Systems for TARGET2

New Framework for Enhanced Settlement Efficiency

The European Central Bank (ECB) has issued WEB Guideline EU 2022912 on February 24, 2022, introducing a new generation of ancillary systems (AS) for TARGET2, the Eurosystem's real-time gross settlement (RTGS) system. These enhanced AS aim to streamline and improve the efficiency of AS transfer order settlement processes in central bank money.

Functionality and Benefits

The upgraded AS provide expanded functionality to facilitate the settlement of AS transfer orders directly in central bank money. This eliminates the need for a two-step clearing and settlement process, resulting in reduced operational risks, faster transaction times, and improved overall efficiency.

Moreover, the new AS leverage cutting-edge technology to support the increasing volume and complexity of AS transfer orders. They provide a more robust and resilient infrastructure, ensuring the smooth and reliable operation of TARGET2 in the years to come.

Implications for Market Participants

The implementation of WEB Guideline EU 2022912 has several implications for market participants. Banks and other financial institutions that utilize TARGET2 will need to adapt their systems and processes to accommodate the changes introduced by the new AS. This includes updating their interfaces and incorporating the new functionality into their operational workflows.

Conclusion

The ECB's WEB Guideline EU 2022912 marks a significant step forward in the modernization of TARGET2. The new ancillary systems will enhance the efficiency, security, and resilience of the European settlement infrastructure, benefiting market participants and contributing to the stability of the Eurozone financial system.