Market Infrastructure & Payments
We provide infrastructure for payment and securities settlement, cooperate with market stakeholders to integrate financial markets in Europe, and oversee financial market infrastructure and payment instruments.
First findings from distributed ledger technology test labs
As part of a joint research project called “Stella”, the European Central Bank and the Bank of Japan are investigating the possible use of distributed ledger technology (DLT) in their respective payment systems.
DLT is a set of tools for recording data, such as asset holdings or financial transactions, allowing a network of computers to verify and store updates without a single central management system.
In the first step of their cooperation, the BOJ and the ECB conducted in-depth experiments on whether the liquidity-saving mechanisms of their respective payment systems could be run in a DLT environment in an efficient and safe manner.
Providing market infrastructure
The Eurosystem has developed and currently operates the real-time gross settlement (RTGS) system, TARGET2, and the European platform for securities settlement in central bank money, TARGET2-Securities (T2S).
Integrating financial markets
The ECB and the Eurosystem foster financial market integration in Europe by contributing to more efficient euro retail payments and the realisation of the Single Euro Payments Area (SEPA). We promote securities harmonisation and the safe and efficient mobilisation of collateral in the euro area via the Correspondent Central Banking Model (CCBM).
Overseeing market infrastructure
The Eurosystem performs oversight to ensure the smooth functioning of payment, clearing and settlement systems. It monitors their performance, assesses them against its objectives of safety and efficiency and, where necessary, induces change.