T2-T2S consolidation: what is it?
The Eurosystem has launched a project to consolidate TARGET2 and T2S, in terms of both technical and functional aspects. The objective is to meet changing market demands by replacing TARGET2 with a new real-time gross settlement (RTGS) system called T2 and optimising liquidity management across all TARGET Services. The new consolidated platform will be launched in March 2023.
New RTGS system
TARGET2 has been running smoothly for over a decade, ensuring safety and efficiency in European payments. However, payments have changed significantly during this period due to technological developments, new regulatory requirements and changing consumer demands.
The new RTGS system will offer enhanced and modernised services to the market. The ISO 20022 messaging standard will be used, as is already the case for T2S and TIPS. The new system will also be able to facilitate payments in several currencies, if the respective central bank decides to do so.
The TARGET Services will share several features to improve liquidity management across them and make payments more cost-effective and efficient.TARGET Services shared features