2003年-ECB欧洲央行_Information_Guide_for_credit_institutions_using_TARGET_177页_697kb

TARGET System Information Guide Summary

Core Content

The TARGET (Trans-European Automated Real-time Gross Settlement Express Transfer) system is a key payment infrastructure within the Eurosystem, designed to support the implementation of monetary policy and promote the smooth operation of payment systems across the euro area. It facilitates real-time gross settlement (RTGS) of cross-border euro payments, treating them as efficiently as domestic transfers.

TARGET operates under a decentralised structure, integrating national RTGS systems with the ECB payment mechanism (EPM) through an Interlinking system. This system allows for seamless cross-border transactions and is built on the SWIFT FIN/SWIFTnet FIN network, which serves as the technical platform for message exchange.

Main Features and Principles

• Real-time gross settlement (RTGS): Payments are settled individually and immediately, ensuring finality and eliminating settlement risk.
• Irrevocability: Payment orders become irrevocable once the sending NCB/ECB debits the RTGS account of the participant.
• Finality: Payments are final once credited to the receiving NCB/ECB account, allowing participants to pass on customer payments without credit risk.
• Support for STP (Straight-through Processing): TARGET is designed to maximise automation and reduce processing costs through standardised message formats and early validation.

Access Criteria

• Only supervised credit institutions as defined in EU regulations can be participants in national RTGS systems connected to TARGET.
• Certain public sector entities and investment firms may also be admitted, provided they meet specific criteria.
• Participants must be identified by a unique published BIC (Bank Identifier Code), which is used for addressing and routing.

Payment Types

3.1 Payments in TARGET

• TARGET processes customer and interbank cross-border payments in euro.
• Data is transmitted without alteration, though the order may vary due to mapping between domestic and Interlinking formats.

3.2 Customer Payments

• Defined as payments in SWIFT MT103 format (standard or STP) or equivalent national formats.
• MT100 format is supported until 15 November 2003.
• Payments can be transmitted from 07:00 to 17:00 C.E.T..
• The first credit field in SWIFT messages must contain the published BIC of the credit institution, not the NCB's BIC.

3.3 Interbank Payments

• Defined as SWIFT MT202 format or equivalent national formats.
• These are processed through the Interlinking system, which uses MT198 messages as envelopes.

3.4 Validation

• Validation occurs at the sending side and receiving side.
• A return key is used to identify and return failed payments.
• Remote access banks can participate in TARGET through other RTGS systems.

3.6 Return Payments

• If a payment cannot be applied, it is returned through the Interlinking system.
• The sending side initiates the return process, and the return key is used to identify the payment.
• Recommendations are provided to ensure proper handling of return payments.

TARGET Day and Operational Procedures

• TARGET Day is the operational period during which payments are processed.
• Opening balances are exchanged between NCBs/ECB at the start of the day.
• Messages are exchanged between NCBs and the ECB during the day.
• Settlement of ancillary systems is handled through TARGET.
• End-of-day procedures include cut-offs for customer and interbank payments, and finalisation of balances.

4.5.1 Cut-off for customer payments

• Cut-off time is 17:00 C.E.T..

4.5.2 Cut-off for interbank payments

• Cut-off time is 17:00 C.E.T..

4.5.3 Finalisation of payment account balances

• Occurs at the end of the TARGET Day.

4.5.4 Abnormal circumstances

• In case of delayed closing, contingency procedures are followed.

Incident Management

• Redundancy is used to ensure business continuity.
• Contingency processing is preferred to maintain payment system stability.
• Core payment settlement functions are required in case of system failure.

5.3.1 CLS payments in euro

• Recommendations are provided to ensure systemic stability.

5.4.1 Operational responsibilities

• Defined for NCBs, ECB, and participants.
• A streamlined decision-making process is in place for contingency operations.

5.4.2 Communication with banks and systems

• Ensures transparency and coordination during incidents.

Compensation Scheme

• A compensation mechanism exists for participants affected by payment failures.
• Scope: Covers certain types of payment errors or delays.
• Process:
  • Applying for compensation: Defined procedures for submitting claims.
  • Receiving compensation: Process for resolving and compensating affected participants.

Frequently Asked Questions

• Operating times:

  • TARGET is open on working days and operates from 07:00 to 17:00 C.E.T..
  • Not all credit institutions are required to be open during TARGET operating hours.

• Payment limits:

  • No daily volume limit.
  • No minimum payment value.

• SWIFT keys:

  • Not required for all payments, but necessary for cross-border transactions.

• Use of "/RT":

  • Not mandatory, but may be used for certain types of messages.

• Queuing mechanisms:

  • Used to manage high volumes of payments.

• Liquidity:

  • Intraday liquidity is provided to RTGS system participants.

• Fees:

  • Charged for bank-to-bank transactions involving customer payments.

Business Practices

• European Banking Federation (EBF) guidelines:

  • Provide recommendations on liquidity management and interbank compensation.

• CLS Payments in Euro:

  • Recommendations are made to ensure stability and consistency in cross-border settlement.

Documentation

• ECB Publications:

  • Includes basic texts and general information on TARGET.

• Other Resources:

  • European Banking Federation website.
  • Bank for International Settlements (BIS) provides documents on payment systems.

Glossary

• A glossary of terms is provided to clarify the terminology used in the document.
• Terms include RTGS, STP, BIC, Interlinking, and contingency procedures.

Summary of Key Points

• TARGET is a RTGS system for cross-border euro payments.
• It is decentralised, using national RTGS systems and the ECB payment mechanism.
• SWIFT MT198 is the message framework for Interlinking.
• BIC codes are essential for identifying participants and ensuring correct routing.
• Customer payments are processed in MT103 format, with MT100 support until 2003.
• Interbank payments are processed via MT202 format.
• Contingency procedures ensure business continuity in case of system failure.
• Compensation is available for affected participants.
• Operating times are standard across the euro area, with no minimum payment value.
• Liquidity and fees are managed according to EBF guidelines and TARGET rules.

Contact Information

• Address: Kaiserstrasse 29, D-60311 Frankfurt am Main, Germany
• Postal address: Postfach 16 03 19, D-60066 Frankfurt am Main, Germany
• Telephone: +49 69 13440
• Fax: +49 69 13446000
• Telex: 411 144 ecb d
• Internet: http://www.ecb.int

Additional Notes

• The document is intended for updates and dynamic use by NCBs, ECB, and TARGET users.
• ISBN numbers are provided for both print and online versions.
• All rights are reserved, but educational and non-commercial use is permitted with acknowledgment of the source.
• Central European Time (C.E.T.) is used throughout the document.