2008年-ECB欧洲央行_Ten_years_of_TARGET_and_the_launch_of_TARGET2_9页_231kb

Summary of "Ten Years of TARGET and the Launch of TARGET2"

Core Content

TARGET, the interbank payment system for cross-border euro transfers, was established in 1999 and operated for ten years before being replaced by TARGET2 in 2008. TARGET was composed of 17 national RTGS systems and the ECB payment mechanism (EPM), and was managed by the Eurosystem. It facilitated the settlement of cross-border payments and supported the implementation of the single monetary policy in the euro area.

Main Features and Benefits of TARGET1

• Decentralised Structure: TARGET1 was a decentralised system with 17 national RTGS systems and the EPM.
• 24/7 Operation: Operated daily except for public holidays.
• Intraday Liquidity Management: Allowed for immediate reuse of incoming funds and provided unlimited intraday credit to participants.
• No Value Limits: Supported payments of any value.
• Support for Systemically Important Transactions: Was used for monetary policy operations and final settlement of important payment systems.
• Cost Efficiency: Although it had a transparent pricing structure, the decentralised system led to higher maintenance and operational costs.

Transition to TARGET2

• Reasons for Replacement: TARGET1 was not sufficient to meet the growing demands for a more harmonised, cost-efficient, and scalable system.
• TARGET2 Design: A new system with a single technical platform, harmonised core services, and a unified pricing structure.
• Migration Strategy: A "country window" approach was adopted, with migration in three waves: November 2007, February 2008, and May 2008. The fourth wave was not needed.
• System Availability: TARGET2 was operational at night, supporting cross-system DvP settlement and improving liquidity management.

Key Statistics of TARGET1

• Participants: 1,072 direct participants connected to TARGET1 at the start of the migration.
• Traffic Volume: By 2007, TARGET1 processed over 360,000 payments per day with a total value of €2.4 trillion.
• Payment Value Distribution: 64% of transactions were ≤ €50,000, 25% were between €50,000 and €1 million, 11% were between €1 million and €1 billion, and <0.1% were >€1 billion.
• System Usage: TARGET1 was one of the largest RTGS systems in the world by value and contributed significantly to the global payment system landscape.

TARGET2 Project Organisation

• Phases: The project was divided into three phases: pre-project, project, and testing and migration.
• User Consultation: Central banks conducted consultations with users to define core and additional services.
• Single Shared Platform (SSP): The decision to build a single technical platform was made to reduce costs and improve efficiency.
• Legal Structure: The Governing Council of the ECB decided on a legal framework for TARGET2 in 2006, aiming for harmonisation.

Stakeholders and Participation

• Central Bank Participation: 21 of the 28 central banks in the Eurosystem connected to TARGET2, with 15 having adopted the euro and 6 opting in voluntarily.
• Direct Participants: By June 2008, 784 direct participants had opened RTGS accounts on the SSP, slightly lower than TARGET1's 1,072.
• Ancillary Systems: 66 ancillary systems were connected to TARGET2, with 51 registered on the SSP and 15 still using PHAs.

System Performance and Usage

• Availability: The SSP achieved 99.9% availability since launch.
• Transaction Speed: Over 99.8% of payments were settled within five minutes.
• Traffic Pattern: Payments were concentrated in the morning, with 90% settled by 5 p.m. and a daily peak between 7 a.m. and 8 a.m.
• Liquidity Management: Intraday liquidity pooling was introduced, but its uptake was lower than expected, with most banks preferring internal liquidity consolidation.

Revenue and Pricing

• Pricing Model: A dual pricing scheme was introduced, allowing participants to choose between a low periodic fee with a flat transaction fee or a higher periodic fee with a degressive transaction fee.
• Revenue Distribution: The SSP generated over 96% of the system's revenues, while local PHAs accounted for the rest.
• Traffic Concentration: Around 90% of traffic was generated by 15% of participants, indicating high concentration among major users.

Conclusion

The transition from TARGET to TARGET2 marked a significant evolution in the euro payment system, offering improved efficiency, harmonisation, and scalability. Despite initial challenges, the migration was successful, with a smooth transition and positive user feedback. The system continues to evolve with regular updates and new features, ensuring its relevance in the dynamic financial landscape of the EU.