2016年-ECB欧洲央行_Disclosure_report_-_TARGET2_assessment_against_the_principles_for_financial_market_infrastructures_24页_397kb

TARGET2 Disclosure Report Summary (June 2016)

Core Content

TARGET2 is the real-time gross settlement (RTGS) system operated by the Eurosystem, designed to settle euro-denominated payments in central bank money with immediate finality. It serves as a critical infrastructure for financial markets in the European Economic Area (EEA) and beyond, connecting approximately 1,000 direct participants and enabling access to over 55,000 addressable banks globally. With an average daily settlement volume of €1.8 trillion and 344,000 transactions, it ranks among the world's largest wholesale payment systems.

The system is legally structured as a multiplicity of systems, with each participating central bank owning its component and operating it under national law. The Eurosystem, through the ECB and its national central banks, manages the system under a three-level governance framework: the Governing Council (Level 1), the Eurosystem central banks (Level 2), and the 3CB (Deutsche Bundesbank, Banque de France, Banca d'Italia) providing and operating the single shared platform (SSP) (Level 3).

Main Risks and Management

TARGET2 is exposed to several key risks, including legal, credit, liquidity, operational/information security, custody, and general business risks. The management of these risks is as follows:

• Credit risk: Managed by the Eurosystem's monetary policy frameworks. The operator of TARGET2 is not directly exposed to credit risk, as it is the central banks that are responsible for such exposure in their role as monetary policy counterparties.
• Liquidity risk: TARGET2, as an RTGS system, settles all transactions from existing funds, thus facing no liquidity risk. It provides liquidity management tools such as offsetting mechanisms, settlement algorithms, and live monitoring via the Information and Control Module (ICM).
• Operational and information security risk: Managed through a comprehensive framework based on ISO/IEC 27002. Detailed emergency plans and backup systems are in place, regularly tested to ensure system resilience.
• Custody and general business risk: These are managed by the operator through internal risk management procedures, with regular reporting to the Governing Council and monitoring of participant behavior.

Key Features and Services

• Real-time settlement: All transactions are settled individually in real time, ensuring immediate finality.
• Dedicated Cash Accounts (DCAs): These are used for securities-related transactions via the T2S platform, which is technically operated by the 4CB (Deutsche Bundesbank, Banco de España, Banque de France, Banca d'Italia).
• Participation models: TARGET2 supports direct and indirect participation, as well as addressable BICs. Participants can access the system through various channels, including direct access and via intermediaries.
• System design: The SSP is technically centralized and modular, offering services tailored to different market infrastructures. It is available from 07:00 to 18:00 CET, with a night-time window for cross-system settlements.
• Legal framework: The TARGET2 Guideline, available in all national languages on the ECB's website, outlines participation rules, default events, and settlement procedures, ensuring consistency and clarity across jurisdictions.

Governance and Oversight

• The Governing Council of the ECB oversees TARGET2 at the highest level, with the authority to make major decisions on its structure and function.
• Level 2 (Eurosystem central banks) manages day-to-day operations and implements the risk management framework.
• Level 3 (3CB) provides and operates the SSP, with a predefined service level agreement.
• The oversight function is separate from the operational function, both at the committee level and within national central banks.

Compliance and Transparency

• TARGET2 has been assessed against the SIPS Regulation for the first time in June 2016.
• Comprehensive documentation, including legal and technical guidelines, is publicly available on the ECB and national central banks' websites.
• The system is continuously updated and enhanced to improve efficiency and adapt to new requirements, such as those introduced by TARGET2-Securities (T2S) in 2015.

Participant-Default Rules

• Events of default are clearly defined in the TARGET2 Guideline.
• In the event of a participant's default, the operator is notified by relevant authorities and will block the participant's account(s) and broadcast the default to other participants.
• Transfer orders not yet entered into the system are put on hold until instructed by a competent authority, while those already entered are processed as per legal requirements, with no guarantees of successful settlement.

Publicly Available Resources

• Detailed legal and technical documentation is accessible via the ECB and national central banks' websites.
• This includes the TARGET2 Guideline, pricing structure, and User Detailed Functional Specifications (UDFS).
• The documentation ensures transparency and clarity for participants and stakeholders, supporting the system's compliance with regulatory standards.

Conclusion

TARGET2 is a robust, transparent, and resilient payment system, designed to support the stability and efficiency of the euro area financial system. It operates under a well-defined legal and governance framework, with continuous improvements and enhancements to ensure its effectiveness and compliance with international standards.