ELLIPS and TARGET

Participating in ELLIPS implies access to TARGET. TARGET, the gross settlement system for the euro is composed of the RTGS systems of the fifteen EU member states and the ECB payment mechanism (EPM) interlinked by a common infrastructure. The use of TARGET is compulsory for transactions directly related to the monetary policy of the ESCB. The components of TARGET, namely the 15 gross settlement systems and the EPM were harmonised regarding operating hours and days, pricing policy and the granting of intraday liquidity by the NCBs. Almost all credit institutions in the 15 TARGET countries, i.e. over 5 000 banks, are accessible via TARGET

The following diagram shows the processing of a TARGET payment. A bank in country A sends a payment instruction in the national format to its national RTGS. The TARGET interlinking system translates the national format into a commonly defined interlinking format. In the addressee RTGS a conversion into the national format takes place. All of this happens in a completely automated system, so that the entire process only takes a matter of seconds.

This diagram may be translated as follows: S (= sending bank in country A) is debited and the account of NCB (R) (=receiving NCB) credited in the books of the sending NCB. The account NCB (S) (= sending NCB) is debited in the books of the receiving NCB and the account R (= beneficiary in country B) is credited. NCB (R) and NCB (S) are mirror accounts.