TARGET Consolidation


Technological evolution in finance has gained momentum in recent years and to meet changing market demands the Eurosystem has launched a project to consolidate TARGET2 and T2S, in terms of both technical and functional aspects. The new consolidated platform offers a state-of-the-art set of market infrastructures comprising a new RTGS system and optimized liquidity management across all TARGET Services. The consolidated TARGET Services will be designed to use the ISO20022 messaging standard and be compliant with the latest cyber resilience directives. The consolidated services are scheduled to be launched in November 2021.

What will the consolidated TARGET Services look like?

The family of TARGET Services will consist of a Central Liquidity Management Module, a new RTGS system, TARGET2-Securities and TARGET Instant Payment Settlement (TIPS). 

An overview of the consolidated TARGET Services —


The Central Liquidity Management (CLM) will be the hub of all liquidity in the services, allowing participants to steer, manage and monitor their central bank liquidity across all TARGET Services. To that end participant can open a main cash account in the books of their national central bank. On this account they will settle all central bank operations, manage their (optional) credit line and transfers liquidity to and from the other services (RTGS, T2S and TIPS).

RTGS provides the settlement for real-time interbank and customer payments and ancillary system transactions. A Party may open more than one RTGS DCA for a dedicated purpose, depending on its business needs (e.g. for AS transactions, for the payment business of a branch/entity). The settlement of payments and AS transactions will remain almost unchanged or is enhanced compared to the execution and service levels in TARGET2 (e.g. reservations for purpose, priorities and optimisation algorithms).

Credit Institutions that are subject to minimum reserve requirements will be able to use the combined liquidity on their main cash account(s) in the CLM and their dedicated cash accounts in the RTGS, T2S and TIPS to fulfill this obligation.

The consolidation shall also consist of a set of common components whose functions are shared by the CLM, RTGS, T2S and TIPS. The Eurosystem Single Market Infrastructure Gateway (ESMIG) shall ensure a network provider agnostic access to the TARGET Services, the Common Reference Data Management (CRDM) will be used for the setup and management of any reference data object that is used by the services, there will be a Billing component for the invoices, a Data Warehouse and a Legal Archiving component.

A more detailed overview of the consolidation can be found in the Business Description Document.

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