TARGET2-BE User Group. 5 April 2017

Transcription

1 TARGET2-BE User Group 5 April 2017

2 Agenda Future RTGS High level business domains CLM and accounts Central bank operations Payments Liquidity transfers Reference data Management minimum reserves Eurosystem Single Market Infrastructure Gateway (ESMIG) Messaging and ISO / 43 T2-BE UG

3 Agenda TIPS Market consultation TARGET2 adaptations Outcome consultation on URD Outcome questionnaire on volumes pricing structure Miscellaneous Fax procedure for contingency AOB 3/ 43 T2-BE UG

4 High level business domains System Operators Direct Participants Network Central Banks Non Euro RTGS Legend In scope for T2/T2S Consolidation Focus for Task Force A2A U2A Transversal Topic Out of scope for T2/T2S Consolidation, but interfaces are in scope Eurosystem Single Market Infrastructure Gateway (ESMIG) TIPS PT LT Multi currency Business Day PT Service Interface: Technical Validation, Information and Reporting SI T2S RTGS Settlement High Value Payments and Ancillary Systems LT PT LT Central Liquidity Management PT Central Bank Services SI CL SI ECMS Contingency Settlement (*) (*) Contingency settlement to be addressed i.a. under the umbrella of cyber resilience Using alternative Gateway Reference Data Management Operational Monitoring Business Monitoring Data Warehouse Billing PT Payment Transaction; LT Liquidity Transfer; SI Settlement Instruction; CL Credit Lines 4/ 43 T2-BE UG

5 Shared functional modules Central Liquidity Management Credit line RM Central Bank Operations Dashboard (GUI) T2S Securities Settlement Securities Auto-Collat Settlement Future RTGS Services HVP, HVPAS AS TIPS Instant Payments Instant Payments Service-related Reference Data Static Data Service-related Reference Data Common Reference Data Shared Billing Data Warehouse Service-related Reference Data GUI GUI GUI Eurosystem Single Market Infrastructure Gateway 5/ 43 T2-BE UG

6 Basic model CLM and main account 6/ 43 T2-BE UG

7 CLM and Multi country banks 7/ 43 T2-BE UG

8 Accounts Main account Central Bank operations (CBO) Credit line Standing facilities Highest priority DCAs for specific purposes High Value Payments AS TIPS T2S 8/ 43 T2-BE UG

9 Functionalities Liquidity transfers Via main account Overview liquidity on all accounts No obligation for main account/dcas Technical direct participants only main account Mandatory to link DCA with main account U2A and A2A 9/ 43 T2-BE UG

10 Reference data Common reference data For all modules E.g. calendar, country codes, Specific reference data TIPS, T2S, E.g. routing rules, message types, Updates Real time for certain actions E.g. blocking accounts On specific date 24/7/365 or regular opening hours 10 / 43 T2-BE UG

11 Management minimum reserves 11 / 43 T2-BE UG

12 Business day schedule 0:00 1:00 2:00 3:00 4:00 5:00 6:00 7:00 8:00 9:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00 24:00 18:00 Cut off Interbank Payments Services 17:00 Cut off Customer Payments 18:45 Change of business day HVP (incl. warehouse payments) Maintenance Window EoD SoD Amend / revoke warehouse payments AS Maintenance Window EoD SoD CLM / CBS Maintenance Window EoD SF* SoD * +15 min. at last day of reverve maintenance period Reference Data Maintenance Window EoD SoD T2S Maintenance Window EoD SoD TIPS 18:00 Change of business day after closure of RTGS ECMS (MW to by confirmed) Maintenance Window EoD SoD Legend Cut off Customer Payments Cut off Interbank Payments Change of business day End of Day Start of Day Maintenance Window Amend / revoke warehouse payments Reference Data on best effort basis 12 / 43 T2-BE UG

13 Eurosystem Single Market Infrastructure Gateway (ESMIG) Technical layer Common entrance interface for all modules Network agnostic Single log on Authentication user Access rights modules Separate GUIs modules will remain 13 / 43 T2-BE UG

14 ISO migration related to the future RTGS services Fully fledged approach instead of like for like : Redesign of T2 Network vendor agnostic V-shape instead of Y-copy HVPS+ task force provides guidelines on harmonisation: Same approach as other market infrastructures Reduce messages to workable format As much re-use of T2S as possible Request new T2 ISO20022 compliant messages if needed 14 / 43 T2-BE UG

15 Possible future message flow 15 / 43 T2-BE UG

16 Possible future message flow (2) Technical transport header: Sender signs with certificate provided by the NSP Receiver checks validity by using associated public key sender Business application header: Global trend in market infrastructures From Bank A to MI -/- From MI to Bank B RTGS service is middleman In line with recommendation ISO standards, HVP+ and other MI s Can be enriched with additional information ( MI system ref, booking time,..) ISO message: forwarded unchanged 16 / 43 T2-BE UG

17 ISO message types processed by future RTGS in V-shape mode: 17 / 43 T2-BE UG

18 Future RTGS service Payment Message flow 18 / 43 T2-BE UG

19 Miscellaneous Consultation on when participants can be ready for ISO will follow Big-bang only solution: 1 migration weekend for all countries No conversion features at level future RTGS Possibility to restrict temporarely some fields to allow conversion in local systems 19 / 43 T2-BE UG

20 ECB-RESTRICTED Consultation on TARGET2 Adaptation to TIPS deadline 13 April

21 Rubric TARGET2 adaptation to TIPS ECB-RESTRICTED Overview Overview TARGET2 change request Liquidity transfers between TARGET2 and TIPS End of day procedure and reserve management

22 Rubric TARGET2 adaptation to TIPS ECB-RESTRICTED Overview The Eurosystem is currently investigating the opportunity of developing a service for the settlement of instant payments in central bank money TARGET instant payment settlement (TIPS) If the development of that service is finally confirmed (decision of the Governing Council expected towards mid 2017), TARGET2 will have to be upgraded in order to properly interact with TIPS from November 2018 onwards. Several areas of TARGET2 would be affected: Liquidity transfers between TARGET2 and TIPS End of day procedure alignment between TARGET2 and TIPS Reserve Management (RM) Module ICM screens The go-live of TIPS would not affect the operating times of TARGET2, which remain unchanged.

23 Rubric TARGET2 adaptation to TIPS ECB-RESTRICTED TARGET2 change request A draft Change Request (CR) for adapting TARGET2 to TIPS is under preparation. As much as possible, the features already developed for adapting TARGET2 to T2S would be reused. This approach allows limiting costs, adaptations and testing efforts on the Central Banks and participants side. The upgrade of TARGET2 will also consider the ongoing investigations on the TARGET2/T2S consolidation so that the solution, which is put in place, complies with the medium/long term strategy envisaged for the Eurosystem s Market Infrastructures.

24 Rubric TARGET2 adaptation to TIPS Liquidity transfers between TARGET2 and TIPS ECB-RESTRICTED TIPS account will hold Central Bank money and will be fueled by liquidity transfers from PM accounts. TARGET2 will need to be upgraded to be able to send/receive liquidity transfers to/from TIPS accounts. TIPS account holders do not need to hold a PM account in TARGET2. Nevertheless, each TIPS account has to will be linked to a PM account ( LM link ) for the purpose of liquidity monitoring on the ICM, potential pulling of funds from the TIPS account and billing. Cross-border LM links are allowed. Any TIPS account may receive funds from and send back funds to any PM account (not applicable for Internet Based Participants). It is foreseen that TARGET2 participants use similar instruments to instruct liquidity transfers to/form TIPS accounts as those already in place for T2S DCAs.

25 Rubric TARGET2 adaptation to TIPS ECB-RESTRICTED Liquidity transfers between TARGET2 and TIPS Similarities with TARGET2/T2S interactions: A2A liquidity transfers using camt.050 (push) U2A instructions entered via the ICM (push and potentially pull) Liquidity transfers also possible during the Night-Time Settlement phase ICM screens offering a consolidated view, including TIPS account balance(s) Highly urgent priority. Differences with TARGET2/T2S interactions TIPS accounts will not be squared at the end of the day Reason: not compatible with the business model of instant payments. No possibility to instruct liquidity transfers via MT202 Reason: anticipating the exclusive use of the ISO standard in the future RTGS system. No possibility to instruct liquidity transfer using standing orders Reason: TIPS accounts are not squared, liquidity adjustments can be carried out before the end of the day, liquidity on TIPS is taken on board in the fulfilment of minimum reserves. No distinction between adaptation to core services and value-added services Reason: simplification of the adaptations, more in line with the approach envisaged for the medium/long term.

26 Rubric TARGET2 adaptation to TIPS ECB-RESTRICTED End of day procedures To avoid liquidity traps, liquidity transfers from TIPS to TARGET2 will be disabled when TARGET2 is closed (e.g. end-of-day phase, technical maintenance, weekends). Upon completion of the end-of-day in TARGET2 (Algo 2,3), TIPS takes a snapshot of all accounts, sends the balances to TARGET2 and changes its value date. Both systems will always operate under the same value date. Overnight balances in TIPS will be taken on board for the fulfilment of minimum reserves. [for Central Banks using the RM module] The RM module will also be adapted. Each TIPS account will be linked to one TARGET2 participant registered in the same NCB ( RM link ) in order for TARGET2 to allocate additional minimum reserves/excess liquidity.

27 Rubric TARGET2 adaptation to TIPS ECB-RESTRICTED Timeline of EoD procedures in TARGET2 and TIPS and calculation in RM module 18:00 Cut-off for liquidity transfers from TARGET2 to TIPS 18:05 Completion of last Algorithms in TARGET2 (Algo 2,3) Minimum reserves/excess liquidity calculations in RM module 18:45 Start of new business day in TARGET2 19:30 Start of liquidity transfers from TARGET2 to TIPS TARGET2 Delivery of General Ledger to TARGET2 TIPS Blocking of outbound liquidity (Liquidity transfers from TIPS to TARGET2) Snapshot of current liquidity balances on TIPS accounts and generation of EoD files (General Ledger); Start of new day in TIPS Unblocking of outbound liquidity transfers (Liquidity transfers from TIPS to TARGET2)

28 TIPS Updates from URD market solution 28 / 43 T2UG

29 Scope changes to URD 29 / 43 T2UG

30 Scope changes to URD 30 / 43 T2UG

31 Scope changes to URD 31 / 43 T2UG

32 Scope changes to URD 32 / 43 T2UG

33 TIPS Market consultation on volumes 33 / 43 T2UG

34 TIPS Market consultation on volumes 34 / 43 T2UG

35 TIPS Market consultation on volumes 35 / 43 T2UG

36 TIPS Market consultation on volumes 36 / 43 T2UG

37 TIPS Pricing structure First indication by Eurosystem 0,5 1 euro cents Based on 2 to 4 millions/day Principles No entry fees No fixed fees Full cost recovery Mainly via transaction fee Charged to originator (some exceptions e.g. time-outs) Account and information services fees Set to zero 37 / 43 T2UG

38 TIPS Pricing structure No volume discounts Annual review and rebate process Connectivity costs To be negotiated with service provider Expectation By end April indication on the amount for the transaction fee 38 / 43 T2UG

39 TIPS Pricing structure 39 / 43 T2UG

40 Contingency Procedures «FAX» In the event that a Target2 participant has an issue and wants to switch to the contingency procedure, he is obliged to provide the Central Bank with the proper forms. Until now the duly signed forms had to be sent by fax (02/ ) The technical support of the fax machine is not longer guaranteed in certain financial institutions. 40 / 43 T2UG

41 Contingency Procedures «FAX» Participants can decide themselves whether they use a fax to send the forms or use instead (duly signed forms as PDF as attachment) In any case the demand to switch to the contingency procedure has to be preceded by a call to the new general telephone 02/ This number is only known by the direct particpants and can only be used for contingency purposes. 41 / 43 T2UG

42 Contingency Procedures «FAX» All incoming calls for 5200 are recorded. Recordings will only be used in case of any dispute between the participant in question and the Central Bank. 42 / 43 T2UG

43 43 / 43 T2-BE UG