T2/T2S consolidation – the deadline is approaching

Since the implementation of TARGET Services in 1998, the European Central Bank (ECB), and other central banks in 19 countries, have been providing an efficient infrastructure for payment transactions in the euro area.

The consistent further development of this infrastructure aims to optimise liquidity management for RTGS, TIPS and T2S and, from 2023, for collateral management. In addition, the further development of the platform as part of the T2/ T2S consolidation project will lead to a reduction in costs for account holders in the medium term.

Yves Mersch, Member of the Executive Board of the European Central Bank, confirmed the importance of this initiative during his speech at the International Capital Market Association European Repo and Collateral Council 2019 Annual General Meeting (Luxembourg, 31 January 2019):

Our current activities – the consolidation of TARGET2 and T2S and the mobilisation and management of collateral through the development of the ECMS – are the cornerstones of the Eurosystem’s ambitious agenda up to 2022.

Since the ambitious schedule had to be postponed by one year, the ongoing optimisation of the platform requires extensive action on the part of all participating institutions.

In order to ensure that all participants can complete the necessary actions on time for the “big bang” introduction in November 2022, the measures for the T2/T2S consolidation must be carried out on the basis of an agreed milestone plan and documented to the national banks.

  • 30.09.2019 – Documentation of the completed impact analysis to the National Bank
  • 31.12.2019 – Connectivity strategy is in place
  • 31.03.2020 – The technical specification is to be completed
  • 31.08.2021 – Completion of the development and internal test phase on the part of the participating credit institutions and ancillary systems
  • 30.11.2021 – Successful completion of both the connectivity tests and the user and certification tests in accordance with Eurosystem specifications
  • 01.12.2021 – Start of community testing activities
  • 30.09.2022 – Successful completion of the community test activities
  • 21.11.2022 – Go-live for all institutions

Together, Expleo and syracom AG have developed the T2/T2S Consolidation Governance Check based on the specified milestones. We will support you through these objectives with the goal of a successful go-live on 21 November 2022. Find more information about our partnership here.

If you’d like to find out more about how Expleo can support with the extensive operational quality assurance measures required, download our flyer here. Or send an email to BFSBusinessServices@expleogroup.com – our experts will be happy to advise you.