2009年-ECB欧洲央行_TARGET2_Oversight_Assessment_Report_11页_263kb

ASSESSMENT OF THE DESIGN OF TARGET2 AGAINST THE CORE PRINCIPLES

Executive Summary

The phased migration from the TARGET system to TARGET2 between November 2007 and May 2008 marked a significant transformation in the euro payment infrastructure. The Eurosystem, led by the ECB, conducted an oversight assessment of TARGET2's design against the Core Principles for Systemically Important Payment Systems (SIPS) and the Business Continuity Oversight Expectations (BCOE). This assessment was based on the Eurosystem's common oversight methodology and included both the Single Shared Platform (SSP) and the Proprietary Home Accounts (PHAs) of six central banks (AT, BE, DE, LT, PL, and PT).

The overall assessment concluded that the design of TARGET2 complies with all nine Core Principles. While some recommendations and concerns require further action, they do not negatively impact the system's compliance. The live operation of TARGET2 has been consistent with expectations, and ongoing oversight ensures continuous compliance.

Core Content and Key Information

1. Assessment Process and Methodology

• Assessment Body: The TARGET2 oversight function, comprising ECB and NCBs, conducted the assessment.
• Participation: The ECB led and coordinated the assessment, with several NCBs (DE, ES, FR, IT, and NL) participating as "core contributing NCBs."
• Methodology: Based on the Eurosystem's common oversight assessment methodology, including the Terms of Reference and the Guide for Business Continuity Oversight.
• Timeline: The assessment started in 2006, with interim results presented to the ECB Governing Council in April 2008.
• Peer Review: PHAs were subject to peer review by other NCBs.

2. Overall Assessment Results

• The design of TARGET2 was found to observe all nine Core Principles.
• Core Principle V (Multilateral Netting) is not applicable due to the RTGS nature of the system.
• Some recommendations and concerns remain, but they do not adversely affect compliance.
• The system's operation and compliance with oversight standards have been confirmed through the assessment.

3. Key Oversight Findings

• Legal Basis (Core Principle I): The legal framework is well-defined and legally sound in all jurisdictions.
• Understanding Financial Risks (Core Principle II): Clear rules and procedures are provided, with training and monitoring by NCBs.
• Management of Financial Risks (Core Principle III): Adequate tools and procedures are in place for liquidity and credit risk management. Recommendations include exploring technical options for real-time synchronization and reviewing operational overhead costs.
• Prompt Final Settlement (Core Principle IV): Payments are settled on the day of value, with clear procedures for validation, acceptance, and finality.
• Settlement Assets (Core Principle VI): Settlement assets are always central bank money, whether in RTGS accounts or mirror accounts.
• Security and Operational Reliability (Core Principle VII): A robust security framework (T2RMF) is in place, based on ISO/IEC 17799-2005. Business continuity arrangements are considered adequate, though some concerns remain regarding inter-regional failover and data reconciliation.

Detailed Assessment by Core Principle

Core Principle I: Legal Basis

• The legal infrastructure is sound and well-documented.
• The TARGET2 Guideline (adopted in April 2007) serves as the main legal instrument.
• The system operates as a multiplicity of payment systems under the ECB and participating NCBs.
• The EU Settlement Finality Directive (SFD) is fully implemented.
• The system ensures irrevocability and finality of payment orders.

Core Principle II: Understanding Financial Risks

• Clear rules and procedures are provided to participants.
• The Harmonised Conditions (HC) and other documents (e.g., UDFS, ICM User Handbook) offer comprehensive information on financial risks.
• Training workshops were organised for participants to enhance understanding.
• NCBs monitor the activity of their participants to ensure compliance.

Core Principle III: Management of Financial Risks

• The system provides tools such as liquidity pooling, priority of payments, and queue management to manage liquidity needs.
• The Information and Control Module (ICM) offers real-time information on payment status and liquidity positions.
• Collateral is required for contingency processing.
• Recommendations include exploring real-time synchronization and reviewing operational costs.

Core Principle IV: Prompt Final Settlement

• Payments are settled on the day of value, preferably during the day.
• Rules for submission, validation, acceptance, and finality are well-defined.
• Payments are considered final and irrevocable at the moment of entry into the system.
• The ICM provides real-time information to participants.

Core Principle V: Multilateral Netting

• Not applicable to TARGET2 due to its RTGS nature.
• The system does not support multilateral netting.

Core Principle VI: Settlement Assets

• Settlement assets are always central bank money.
• Payments are settled in either RTGS accounts or mirror accounts.
• Central banks manage these accounts, ensuring no credit or liquidity risk.

Core Principle VII: Security and Operational Reliability

• A comprehensive security policy (T2RMF) is in place, aligned with international standards.
• The system is resilient with robust infrastructure and documented procedures.
• Business continuity arrangements are integrated into contracts with service providers.
• Concerns exist regarding inter-regional failover and data reconciliation in asynchronous mode.

Conclusion

The design of TARGET2 is well-established and compliant with the Core Principles, with the exception of Core Principle V, which is not applicable. The system operator has addressed most of the oversight concerns, and the remaining issues do not affect the overall compliance. The live operation of TARGET2 has been in line with expectations, and ongoing oversight ensures continuous adherence to standards.