TARGET2/T2S consolidation project - Impact on CeBM activities - Reminder
Clearstream Banking1 informs customers about Eurosystem’s TARGET2/T2S consolidation project that will consolidate TARGET2 (T2) and TARGET2-Securities (T2S) services, effective on
21 November 2022
Background
This consolidation will optimise the liquidity management across all the TARGET services and meet the changing market demands to existing and future Eurosystem payment and settlement services.
As per the decision of the ECB, the project will be implemented using a “big-bang approach”, that is, simultaneous discontinuation of the current TARGET2 Single Shared Platform (SSP).
More information about the scope was published by the ECB.
Details on Clearstream Banking AG, Frankfurt’s (CBF) functionality has been outlined in Announcement D20027.
Potential impact on Clearstream Banking S.A. (CBL) customers
As of 21 November 2022, CBL will be no longer remain an Ancillary System (AS).
CBL migrates it’s current Central Bank Money (CeBM) cash settlement services using the Ancillary System interface in T2 to T2S service. Currently, CBL uses a dedicated ASI Procedure (P2) for the cash settlement of GC pooling transactions in real-time mode. The GC pooling cash settlement will be migrated to T2S as part of the Collateral Mobility project. The related information has been shared in Announcement A21081.
The payment banks clearing their cash via an Ancillary System are expected to provide “settlement bank account group” to their respective Central Bank. As CBL will no longer act as an Ancillary System, customers need to consider, that the “settlement bank account group” in section 5 “Setting Up Groups” of the “t2-registration-form-data.xlsm” shared by the respective Central Bank via email is not applicable anymore.
No impact on cash instructions from customers to CBL
There is no impact on the cash instructions sent to CBL. Customers can continue to use CBL’s Cash Financing Services2 described in Chapter 5 of the CBL Customer Handbook to view the latest formats described in the handbook. CBL will continue to accept the relevant cash instructions as shown below:
- MT103 or MT200 or MT202- Withdrawal of funds;
- MT103 or MT202- Book-entry transfer of funds;
- MT210 - Pre-advice of entry of funds; and
- MT299 - Foreign Exchange (FX).
Customers should take note that though the structure of MT210 (pre-advice of entry of funds) remains the same, the new T2 RTGS BIC should be provided by the customer if the funds are transferred to Clearstream Banking’s T2 RTGS DCA. The BIC TRGTXEPMRTG should be used by customers as F56A in the pre-advice sent to Clearstream Banking to advise transfer of funds to T2 RTGS DCA.
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Cash instructions from customers to T2 services
Customers participating in the new T2 Real Time Gross Settlement (RTGS) system are requested to follow the guidelines and technical documentation provided by the ECB in this respect. The respective Liquidity Transfer and Payment messages need to be transmitted using the designed T2 services via ISO 20022 (XML formats).
Further information
For further information, customers may contact Clearstream Banking Client Services or their Relationship Officer. Questions related to the technical connection can be addressed to Connectivity Support.
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1. Clearstream Banking refers collectively to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248, and Clearstream Banking AG (for Clearstream Banking AG customers using Creation Accounts), registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.
2. Clearstream Banking’s strategy for migration of banking messages from ISO 15022 to ISO 20022 standards will be communicated separately.