Target2
Target2 robust enough to withstand liquidity shocks – ECB study
Research modelled the effects of “extreme collateral deteriorations” on Target2 participants
Mersch: volume of T2S trades due to greatly expand
The “Target instant payment settlement system” could be working as soon as 2018, Mersch adds
ECB publishes online newsletter on financial market infrastructure
Newsletter will be published three times a year, covering central bank’s work as operator and overseer of financial market infrastructure
ECB says it has learned lessons from simulated cyber attack
Federal Reserve, eurozone central banks and private firms took part in exercise to test Target2 payment system
Target2 balance surge not a sign of eurozone ‘stress’ – ECB’s Praet
European Central Bank’s chief economist says €400 billion increase in outstanding euro real-time gross settlement claims is largely due to ECB’s asset purchases, rather than eurozone weakness
Bank of Finland looking to streamline and upgrade payments simulator
Economist sheds light on the bank’s plans for adding new features, improving efficiency and integrating agent-based modelling
Annual Target2 volumes fall, ECB announces
Transactions on the eurozone’s real-time gross settlement system fell to their lowest-ever level in 2015; ECB concerned this could threaten cost recovery
ECB’s Mersch provides update on infrastructure work
Yves Mersch says business requirements being gathered from market participants ahead of instant payments; highlights plans for review of harmonisation of collateralisation procedures
Researchers propose adapted methodology to assess money market microstructure
The standard algorithm used to assess bilateral exposures in the interbank market needs adapting to make it robust to zero and negative interest rates, two economists argue
Networks did not spread 2008 shocks in eurozone money market, paper argues
Banking networks in the eurozone did not play a major role in spreading shocks in the financial crisis, ECB working paper argues; eurozone banks are ‘not network dependent’
ECB chooses SIA-Colt partnership for T2S connection
European Central Bank confirms it will use SIA and Colt's 'value-added network services' to connect to Target2-securities
Eurosystem to consider Target2 and T2S merger
Yves Mersch says officials will look into the potential for consolidating some components of the payments and securities settlement services; potential for one unified platform
First Target2 data release sheds light on imbalances
Data on cross-border eurozone financial flows gives clarity as to the sharply different directions funds have been travelling, with Germany still comfortably the most popular destination
Mersch: T2S may prompt ‘more global network for mobilisation of collateral assets'
ECB board member says Target2 offers 'possibilities for linkages' between T2S central securities depositories with those 'from other geographical areas'
Target2 values drop by €150 trillion as ECB changes statistical methodology
European Central Bank excludes overnight deposits from data sample; values processed by Target2 drop from €643 trillion in 2012 to €493 trillion in 2013 as a result
Target2 'filled in' balance of payments gaps during euro crisis, NY Fed paper finds
Federal Reserve Bank of New York study finds adjustment to the pullback of private capital during the euro crisis made less harsh by Target2
Banque de France's Christian Noyer on bank runs, the euro crisis and a Fed-like ECB
Christian Noyer explains how he has restructured the Banque de France to enable it to become the Eurosystem’s ‘New York Fed’, while facing down a bank run and tackling the euro crisis
Central bank operations push up Target2 turnover
ECB annual report says central banks helped push the value of payments in Target2 system to €634 trillion in 2012; balances diverged as German claims and Spanish liabilities increased
ECB research uses game theory to assess optimal T2S adaptation
Working paper attempts to find optimal lump-sum investment by central securities depositories migrating to Target2 Securities, and tests possibility of tacit collusion
Dutch paper analyses changes in unsecured overnight money market
Study examines changes to the ECB’s monetary policy framework in the mid-2000s; finds they reduced volatility in Dutch segment of Target II system
T2S chief warns regulatory inaction could damage harmonisation process
Jean-Michel Godeffroy says CSD regulation must be passed this year to avoid harmonisation delays; conference panellists raise concerns over costs, limited participation and financial transaction tax
T2S programme hit by delays with costs set to soar
Europe’s new securities settlement system, Target2-Securities, faces tough implementation schedule, say Clearstream and Euroclear officials; ECB reaffirms commitment to price plan and timescale
ECB lauds 2012 as year of ‘great achievement' for T2S programme
Annual report details progress in 2012 including 22 participating clearing houses and new governance and legal frameworks, though one deadline has already been missed
Collateral problems in the euro area
The euro area sovereign debt crisis has caused remarkable growth in the operations of the Eurosystem. It also led to diminished collateral availability.