Euro night-time funding link

For customers with a TARGET2 RTGS account, our Euro Night-Time Funding link is an efficient cash and collateral management service giving customers the chance to optimise their collateral 24 hours a day.

The service operates during the night, while TARGET2 is closed for payment, and allows customers to access liquidity held in their TARGET2 RTGS account. They can pre-set the limit and any available liquidity is used as a collateral source for settlement of EUR transactions at Clearstream during our night-time processing cycle.

Liquidity taken from this account must be used for EUR settlement but allows customers to free up any other collateral held in Clearstream to be used for credit in other currencies.

Clearstream’s Euro Night-Time Funding link has been designed to provide maximum operational and collateral efficiency:

  • Only the EUR liquidity actually used by the service overnight ends up being debited from the customer’s TARGET2 RTGS account, up to the value of their pre-set limit. Any debit occurs automatically before TARGET2 opens for payment the next day and any unused liquidity is also freed up before opening, resulting in a clean starting position
  • Customers use standard TARGET2 tools to operate the service, giving easy and full control over the liquidity dedicated to the service
  • The service reduces/replaces the need for pre-advice of EUR payments to Clearstream ahead of our night-time processing cycle.

Anyone participating in TARGET2 can take advantage of this innovative service.