What is the ECMS?

The ECMS replaced the systems previously used by euro area national central banks to manage the assets used as collateral for Eurosystem credit operations.

This transition from a fragmented, decentralised structure is in line with other broader Eurosystem initiatives that aim to develop common platforms and systems that work across the euro area, further consolidating and streamlining the provision of market infrastructure services.

Together with the other TARGET Services offered by the Eurosystem – and making use of the components shared by these services – the ECMS facilitates the smooth flow of cash, securities and collateral across Europe.

The ECMS uses the ISO 20022 messaging standard, in common with T2, TIPS and T2S.

The ECMS keeps track of the individual collateral and credit positions of the national central banks’ counterparties. To this end, it draws on data sourced from central securities depositories, triparty agents and ECB/Eurosystem databases and applications.

The ECMS uses this data to calculate the available credit line for each counterparty, and sends this information to the T2 central liquidity management tool.

Counterparty mobilisation instructions are converted into settlement instructions, which are then sent to and settled in TARGET2-Securities (T2S).

The ECMS also processes corporate actions, triparty instructions and credit claim instructions in a harmonised manner.

See the technical description for more details, as well as the ECMS privacy statement on how personal data are processed by the ECMS in accordance with EU data protection rules.

The ECMS is used by national central banks, counterparties, central securities depositories and triparty agents.

The ECMS does not affect the business or legal relationships between counterparties and national central banks. Counterparties, central securities depositories and triparty agents contact the relevant national central bank via the established channels. Moreover, the national central banks are still responsible for collecting counterparty bids in Eurosystem credit operations.

New harmonised rules and arrangements for the mobilisation and management of collateral came into force in June 2025.

For further details, see the harmonised processes, procedures and arrangements involved in the mobilisation and management of collateral in Eurosystem credit operations.