User standards


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 these   standards.

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