The Eurosystem grants credit to its eligible counterparties against eligible collateral.
Many of the assets for monetary policy operations or intraday credit in TARGET are transferred
through Securities Settlement Systems (SSSs).
An SSS is a system which permits the holding and the transfer of securities, either free of payment
(FOP) or against payment (DVP). It comprises all the institutional arrangements required for the
clearing and settlement of securities trades and the safekeeping of securities. Settlement of
securities occurs on securities deposit accounts held with the CSD, ICSD or with the institution in
charge of operating the system.
For details on settlement providers, see the section Settlement.
Any failure of the systems to transfer eligible securities may have a serious impact on the
smooth functioning of payment systems and on the conduct of monetary policy. The Eurosystem sets standards
for the use of SSSs in its credit operations. They were first developed in 1998 and are based on internationally
recognised standards. The Eurosystem regularly assesses the euro area systems and the links between them against