T2/T2S consolidation: How does it impact you?
In the context of its VISION 2020 program, the Eurosystem is launching the TARGET (or T2/T2S) consolidation project. The project consists of gathering functional, technical and connectivity components of TARGET Services while keeping TARGET2 (T2) and TARGET2Securities (T2S) two separate services.
WHAT ARE THE MAIN FEATURES OF THE T2/T2S CONSOLIDATION PROJECT?
New Central Liquidity Management that will Accessibility to TARGET Services through a provide liquidity management across TARGET CLM ESMIG single platform Eurosystem Single Market services and where the interactions with the Infrastructure Gateway (ESMIG) Central Bank will take place
T2/T2S consolidation
New Real-Time Gross Settlement (RTGS) Common services to all TARGET Services such that will provide the settlement for real-time as the Common Reference Data Management, interbank and customer payments, and ancillary RTGS Common Billing module, Business Day Management, etc. Services system transactions
WHO IS IMPACTED?
All Luxembourg banks having an TARGET direct participants TARGET indirect participants account at the BCL
WHAT ARE THE MAIN IMPACTS?
PROJECT AND CHANGE MANAGEMENT INTERACTIONS WITH THE BCL
MANDATORY INTERNAL TRAINING OF THE STAFF REVIEW OF THE LIQUIDITY MANAGEMENT PROCESS
IT SYSTEMS, CONNECTIVITY AND SELECTION OF A NETWORK SERVICE MIGRATION TO ISO 20022 PROVIDER FOR ESMIG CONNECTIVITY
KEY MILESTONES* Testing Nomination of a Selection of the Go-live Project Manager Network Service Training Provider Migration activities March 2019 Oct. 2020
Dec. 2018 July 2020 22 Nov. 2021
Start of the internal Completion of software assessment development * Theoretical timeline that may change due to COVID19 situation
ATTENTION POINTS
BIG BANG APPROACH BCL PROJECT MANAGEMENT
• Participants that are not ready • This project impacts the • The project workload is as of November 2021 will lose entire Luxembourg banking especially important for some their access to TARGET2 community and not just actors Services current TARGET2 participants
• Unprepared banks may no • Follow up of the BCL through a • The project will impact longer be able to comply periodical reporting about several parts of the value with their minimum reserves participants’ readiness chain requirements
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